Data Analytics Outsourcing Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 8.11 Billion |
| Market Size (2029) | USD 60.02 Billion |
| CAGR (2024 - 2029) | 34.33 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Data Analytics Outsourcing Market Analysis
The Data Analytics Outsourcing Market size is estimated at USD 8.11 billion in 2024, and is expected to reach USD 60.02 billion by 2029, growing at a CAGR of 34.33% during the forecast period (2024-2029).
Artificial Intelligence (AI)/Machine Learning technology has replaced humans in many aspects of data analytics, thus, requiring less input from human manual work. Therefore, the nature of data analytics outsourcing skews toward how humans can effectively create and train a machine learning model rather than how businesses could manage an offshore team.
- According to IBM, the last two years have created over 90% of the world's data. And while there is a talent gap, analytics solutions are expanding because they are being accepted by a variety of sectors, including BFSI and retail, to mention a few. For instance, it has been noted that FMCG firms struggle with inconsistent sales performance due to a lack of diagnostic analytics, the ability to pinpoint what terrible bad performance is, or the capacity to produce precise sales forecasts.
- The manufacturer needed money and time to expand internal data analytics to gain quick insight, they turned to analytics outsourcing before the COVID-19 outbreak, and many organizations were outsourcing their data operations; the crisis accelerated this practice even further-additionally, businesses investing a significant portion of their IT budgets in cybersecurity initiatives. DataScience blog reports that a recent survey revealed that 37% of corporate leaders claimed they were already preparing to reduce the budgets for their IT departments. The same study discovered that 28% of companies want to relocate some of their data analytics programs overseas.
- Large-scale data production has prompted businesses to look for insights, including consumer segmentation, understanding of preferences within each category, staying up to speed with changes in behavior, and customization. Due to increased internet usage, organizations have access to a vast amount of structured and unstructured data. Due to these advantages, multinational corporations now have their big data evaluated for practical knowledge.
- Adoption also included cloud migration because these capabilities complement the ability to gather Big Data and are intrinsic to cloud features like scalability, agility, cost-effective storage options, and access to massive processing power. In addition, cloud computing technology is now widely used, and the cloud's seamless connectivity makes it available and encourages the development of Big Data Byce to the annual State of the Cloud Report from Right Scale, 78% of firms use hybrid cloud, compared to 19% who use public cloud. Consequently, the development of cloud technology is accelerating the development of the industry under investigation.
Data Analytics Outsourcing Market Trends
Increasing Adoption of Data Analytics Outsourcing in BFSI is Driving the Market
- In the banking sector, data analytics may be used for various things, from enhancing cybersecurity to lowering customer attrition. Even more data from external sources, such as trade, regulatory, and social media involvement, can be accessed by banks and used for their operations after being processed and evaluated. For instance, Redwood Credit Union in Santa Rosa, California, discovered that social data was crucial for providing auto loans. It previously considered a member's credit score and history of auto purchases when extending preapproval for such loans every two years. It soon learned that there was a far more trustworthy indicator and changed how frequently preapprovals were granted.
- Big Data has a tremendous impact on banks' customer-facing and back-of-house activities. It is essential for performing risk management tasks, which include determining the probability that a given transaction will be fraudulent or pose a credit risk. For each transaction, data analytics systems can examine thousands of variables, such as applicants' credit histories, prior loan activity, past credit card activity, or specific things in their credit histories. This enables bank employees to make informed forecasts about interactions' risk aspects. The default likelihood of roughly 9.5 million mortgages was calculated by Bank of America's Corporate Investment Group (CIG) using a data analytics method, cutting the computation time from 96 to 4 hours.
- The Financial Conduct Authority and the Bank of England updated the public on their attempts to alter data collection last year. The paper suggests significant data collection advancements over the following ten years to give authorities better data while lessening the strain on businesses. The vision statement for modifying data collection from the Bank and FCA best captures this goal: "that they get the data they need to perform their mission, at the lowest possible cost to the business.
- Additionally, during the ABA Conference for Community Bankers, the Bank of Botetourt, Farmers Bank of Appomattox, and Select Bank & Trust announced their selection of KlariVis, a unique and exclusive data analytics software platform created by bankers for bankers. By locating and making accessible community financial institutions' revolutionary data, KlariVis enables them to make more strategic and knowledgeable decisions. Banks like Select Bank & Trust benefit from better and immediate insight into variables like deposit, loan, and revenue growth because of KlariVis' automatic compilation and aggregation of actionable data. Community banks may use data to drive decisions across the board, giving them a significant edge over rivals in the current market.
Asia-Pacific Region is Expected to Witness Fastest Growth
- Big Data analytics is being rapidly adopted to predict future activity, trends, and customer behaviors. Big Data analytics identifies existing insights, creates connections between data points and sets, and cleans the data. Major IT companies and analytics organizations in the area are establishing ML practices and creating vertically-specific AI solutions, which AI/ML and analytical models reinforce.
- Growing usage of analytics is necessary since the data from rising social penetration contains hidden patterns that can't be found using conventional analytics techniques. We Are Social reports that the active social network penetration in China and the US last year was 64.6% and 72.3%, respectively, demonstrating a significant volume of data generation necessitating analytics. Businesses nationwide are encouraged by this to choose data analytics outsourcing.
- With TCS producing USD 2 billion from analytics services, India has been the analytics market's top revenue producer. Companies like India Inc., led by TCS, Genpact, and Wipro, also invest extensively in this field, broadening the services available. Additionally, about 47% of India's analytics revenues come from exports to the US, whereas the UK, which is in second place, generates 9.6% of its overall USD 27 billion in outsourcing revenue.
- Extensive data analysis and high-tech were extensively employed in China to assist governmental policy decisions, including the ongoing battle against COVID-19. Advanced data analytics generated a path map for people flow based on the data platform, specifically for individuals who entered and exited Hubei Province or other outbreak areas to determine who these individuals had been in close contact with; these maps followed the movement of those who had tested positive for the coronavirus in the previous 14 days. The local government and community could implement defensive measures because of these findings.
Data Analytics Outsourcing Industry Overview
The Data Analytics Outsourcing Market is fragmented, with various vendors providing business process solutions for big companies and SMEs. As the amount of big data enterprises generate increases, more vendors are contacted to manage enterprise data and provide data intelligence services. Technological advancements in the market are also bringing sustainable competitive advantages to companies, and the market is also witnessing multiple partnerships and mergers.
- June 2023 - Genpact, a global professional services firm focused on delivering outcomes that transform businesses, announced it is working with Google Cloud to help businesses accelerate artificial intelligence (AI) strategies, including taking advantage of generative AI's adoption to drive actionable business insights.
Data Analytics Outsourcing Market Leaders
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Accenture PLC
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Capgemini SE
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Cognizant Technology Solutions Corp.
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Genpact Ltd
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IBM Corporation
*Disclaimer: Major Players sorted in no particular order
Data Analytics Outsourcing Market News
- February 2024 - Wipro and IBM Expanded Partnership to Offer New AI Services and Support to Clients. Wipro launched an Enterprise AI-Ready Platform, leveraging IBM Watsonx, to advance enterprise adoption of Generative AI. As part of the expanded partnership, IBM and Wipro will establish a centralized tech hub to support joint clients in their AI pursuits. As part of this expanded partnership, Wipro associates will be trained in IBM hybrid cloud, AI, and data analytics technologies to help accelerate the development of joint solutions.
- September 2023 - IBM announced plans for new generative AI foundation models and enhancements coming to watsonx. These enhancements include a technical preview for watsonx. Governance, new fertile AI data services coming to watsonx. Data and the planned integration of watsonx.ai foundation models across select software and infrastructure products.
Data Analytics Outsourcing Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Impact of COVID-19 on the market
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Intensity of Competitive Rivalry
4.3.5 Threat of Substitute Products
4.4 Industry Value Chain Analysis
4.5 Market Drivers
4.5.1 Increasing Volume and Variety of Data being Generated are the Major Driving Factors for this Industry
4.5.2 Increasing Adoption of Data Analytics Outsourcing in BFSI
4.6 Market Challenges
4.6.1 Lack of Skilled Professionals
5. MARKET SEGMENTATION
5.1 Type
5.1.1 CRM Analytics
5.1.2 Supply Chain Analytics
5.1.3 Risk Analytics
5.1.4 Financial Analytics
5.1.5 Other Types
5.2 End-user Industry
5.2.1 Retail
5.2.2 Automotive
5.2.3 Manufacturing
5.2.4 BFSI
5.2.5 IT and Telecom
5.2.6 Oil & Gas
5.2.7 Other End-user Industries
5.3 Geography
5.3.1 North America
5.3.2 Europe
5.3.3 Asia-Pacific
5.3.4 South America
5.3.5 Middle East and Africa
6. COMPETITIVE Intelligence
6.1 Company Profiles
6.1.1 Accenture PLC
6.1.2 Capgemini SE
6.1.3 Cognizant Technology Solutions Corp.
6.1.4 Genpact Ltd.
6.1.5 Gramener
6.1.6 IBM Corporation
6.1.7 Infosys Ltd.
6.1.8 Mu Sigma Inc.
6.1.9 Opera Solutions LLC
6.1.10 Tata Consultancy Services Ltd.
6.1.11 Wipro Ltd.
6.1.12 WNS Global Services Private Limited
6.1.13 ZS Associates Inc.
- *List Not Exhaustive
6.2 Vendor Ranking Analysis
7. INVESTMENT ANALYSIS AND FUTURE OUTLOOK
Data Analytics Outsourcing Industry Segmentation
A data-driven organization might allocate its data to a service provider in the data analytics outsourcing model to gain access to intelligent reporting. The provider neglects data administration, data analysis, and infrastructure setup and support. The desire for immediate insights drives data analytics outsourcing because firms find it time-consuming to handle the data created.
The data analytics outsourcing market is segmented by type (crm analytics, supply chain analytics, risk analytics, financial analytics), end-user industry (automotive, manufacturing, retail, bfsi, it, telecom, oil & gas), and geography (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa). The market sizes and forecasts are provided regarding value (USD) for all the above segments.
| Type | |
| CRM Analytics | |
| Supply Chain Analytics | |
| Risk Analytics | |
| Financial Analytics | |
| Other Types |
| End-user Industry | |
| Retail | |
| Automotive | |
| Manufacturing | |
| BFSI | |
| IT and Telecom | |
| Oil & Gas | |
| Other End-user Industries |
| Geography | |
| North America | |
| Europe | |
| Asia-Pacific | |
| South America | |
| Middle East and Africa |
Data Analytics Outsourcing Market Research FAQs
How big is the Data Analytics Outsourcing Market?
The Data Analytics Outsourcing Market size is expected to reach USD 8.11 billion in 2024 and grow at a CAGR of 34.33% to reach USD 60.02 billion by 2029.
What is the current Data Analytics Outsourcing Market size?
In 2024, the Data Analytics Outsourcing Market size is expected to reach USD 8.11 billion.
Who are the key players in Data Analytics Outsourcing Market?
Accenture PLC, Capgemini SE, Cognizant Technology Solutions Corp., Genpact Ltd and IBM Corporation are the major companies operating in the Data Analytics Outsourcing Market.
Which is the fastest growing region in Data Analytics Outsourcing Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Data Analytics Outsourcing Market?
In 2024, the North America accounts for the largest market share in Data Analytics Outsourcing Market.
What years does this Data Analytics Outsourcing Market cover, and what was the market size in 2023?
In 2023, the Data Analytics Outsourcing Market size was estimated at USD 5.33 billion. The report covers the Data Analytics Outsourcing Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Data Analytics Outsourcing Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Data Analytics Outsourcing Industry Report
Statistics for the 2024 Data Analytics Outsourcing market share, size and revenue growth rate, created by 糖心vlog传媒鈩� Industry Reports. Data Analytics Outsourcing analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
