Key Market Overview:
Data Analytics Outsourcing Market size was worth USD 4.56 Billion in 2022, accounting for a CAGR of 22.8% during the forecast period (2023-2030), and the market is projected to be worth USD 28.96 Billion by 2030.
Data analytics outsourcing refers to the process of hiring an external company or individual to perform data analytics tasks for a business. Outsourcing data analytics tasks can provide several benefits, including cost savings, access to specialized expertise, increased efficiency, and scalability. Outsourcing data analytics allows businesses to focus on their core competencies while leaving the data analytics tasks to experts who can deliver more accurate and insightful analysis. Outsourcing can also reduce the need for businesses to invest in expensive analytics tools and technologies or to hire and train specialized personnel.
According to a recent survey highlighted by the DataScience blog, a significant percentage of business leaders (37%) plan to reduce their budgets for in-house IT departments. This trend indicates that there may be an increasing demand for outsourcing IT services, including data analytics, to specialized service providers who can offer cost-effective and efficient solutions. Furthermore, the survey also found that 28% of businesses are planning to move at least a portion of their data analytics programs overseas. This trend highlights the growing popularity of outsourcing data analytics services to offshore locations, where businesses can access a pool of skilled and cost-effective resources. The data analytics outsourcing market is expected to benefit from this trend as more businesses seek to optimize their operations by leveraging the expertise of third-party service providers.
Outsourcing data analytics tasks can be done on a project-by-project basis or as an ongoing partnership. The outsourced data analytics team can work remotely or onsite, depending on the needs of the business. Data analytics outsourcing is particularly common in industries such as finance, healthcare, retail, and e-commerce, where large volumes of data are generated regularly. However, data analytics outsourcing also has potential risks, such as data security breaches, loss of control over the data, and misinterpretation of results due to lack of domain knowledge. Therefore, it is important for businesses to carefully evaluate potential outsourcing partners and ensure proper measures are in place to protect sensitive data.
Outsourcing data analytics tasks allows companies to scale their operations quickly and efficiently. As business needs change and grow, outsourcing providers can adjust the level of service to meet those needs. Furthermore, the globalization of the economy has also contributed to the growth of the data analytics outsourcing market, as companies are increasingly looking for providers that offer services on a global scale, with expertise in multiple languages and cultures. Additionally, one of the primary drivers of the market is cost savings. Companies save money by outsourcing their data analytics tasks to third-party providers who have lower labor costs or economies of scale. Therefore, the above mentioned factors propel the market growth.
One of the primary restraints of the data analytics outsourcing market is the potential for data security breaches and cyberattacks. Companies must give their sensitive data to third-party outsourcing providers. Which can further create unauthorized access and data breach. Additionally, outsourcing data analytics tasks means that companies must relinquish control over their operations, which is a significant concern for organizations. They are totally required to rely on outsourcing providers to manage their data analytics tasks, which raises issues of quality control and communication barriers. These factors are significant restraints on the growth and adoption of data analytics outsourcing solutions.
The future of the data analytics outsourcing market holds exciting opportunities for outsourcing providers to offer innovative solutions that integrate data analytics with emerging technologies such as the Internet of Things (IoT) and artificial intelligence (AI). The integration of these technologies is expected to create new possibilities for outsourcing providers to offer more comprehensive and sophisticated solutions to their clients, allowing for deeper insights into data and more informed business decisions. As these technologies continue to evolve, outsourcing providers will be able to offer scalable, cost-effective, and tailored solutions that meet the unique needs and challenges of different industries, creating new opportunities for growth and expansion in the market.
Data Analytics Outsourcing Report Coverage:
|Report Attributes||Report Details|
|Market Size in 2030 (USD Billion)||28.96 Billion|
|By Type||Descriptive, Diagnostic, Predictive, and Prescriptive|
|By Tools||Python, R, SAS, Tableau, Power BI, and Others|
|By Application||Marketing Analytics, Sales Analytics, Finance & Risk Analytics, Supply Chain Analytics, and Others|
|By End-use||BFSI, Healthcare, Telecommunication, Manufacturing, and Others|
|By Region||North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa|
|Key Players||Capgemini SE, Accenture plc, Genpact, IBM Corporation, Trianz (TRIANZ CONSULTING PRIVATE LIMITED), ZS Associates, Tata Consultancy Services (Tata Group), Fractal Analytics, Wipro Limited, and WNS Limited|
Based on type, the data analytics outsourcing market is classified into descriptive, diagnostic, predictive, and prescriptive. The descriptive type holds the largest market share in the year 2022. Descriptive analytics is generally considered to be the most common type of analytics used by businesses, as it provides insights into past events and can help identify trends and patterns in data. As a result, many businesses may prioritize outsourcing descriptive analytics to gain a better understanding of their data and make informed decisions.
However, the predictive analytics type is expected to witness fastest CAGR over the forecast period. This growth is attributed to the increasing adoption of big data and artificial intelligence (AI) technologies, as well as the growing demand for predictive analytics solutions in various industries such as healthcare, finance, and retail.
Based on tools, the market is categorized into Python, R, SAS, Tableau, Power BI, and others. The Python segment holds the largest market share in the year 2022. This is due to the popularity of python for data analytics outsourcing owing to its user-friendly syntax, adaptability, and comprehensive collection of tools for analysing and visualizing data.
However, SAS is expected to witness the fastest CAGR over the forecast period. SAS is a widely recognized and trusted tool for advanced analytics and data management in the data analytics outsourcing market, offering robust features and functionality for processing, and analysing large datasets.
Based on application, the market is categorized into marketing analytics, sales analytics, finance & risk analytics, supply chain analytics, and others. The marketing analytics segment holds the largest market share in the year 2022. In the data analytics outsourcing market, marketing analytics is a popular application segment, particularly in industries such as retail, e-commerce, and consumer goods. Many businesses choose to outsource their marketing analytics to specialized service providers who have expertise in the area.
However, the sales analytics segment is expected to witness the fastest CAGR over the forecast period. This is attributed to the growing importance of data-driven decision-making in sales, more and more businesses are turning to data analytics outsourcing providers to help them improve their sales processes and strategies.
Based on the end-use segment the market is classified into BFSI, healthcare, telecommunication, manufacturing, and others. The BFSI segment holds the largest market share in the year 2022. This sector has been a significant adopter of data analytics outsourcing services to improve risk management, fraud detection, and customer experience.
However, the manufacturing sector is expected to witness the fastest CAGR over the forecast period. The manufacturing sector is increasingly adopting data analytics to optimize production processes, improve quality control, and reduce costs, which is driving the demand for data analytics outsourcing services.
Based on region, the market is categorized into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. North America holds the largest market share in the year 2022. This is attributed to the presence of several large outsourcing providers and a strong focus on data-driven decision-making in industries such as healthcare, finance, and retail.
However, Asia Pacific is anticipated to witness the fastest CAGR over the forecast period. This is driven by the increasing adoption of data analytics solutions by companies in the region and the emergence of several outsourcing providers offering cost-effective solutions. In the region several fast-growing economies, such as China and India, which are witnessing rapid digitization and an increasing focus on data-driven insights. As a result, the demand for data analytics outsourcing services is expected to increase significantly in the Asia-Pacific region in the coming years.
Data Analytics Outsourcing Market Competitive Landscape:
The market is highly competitive, with a large number of players operating at the global and regional levels. The players compete on various parameters such as price, quality, innovation, and customer service. They are constantly investing in research and development to improve their products and expand their market share. Mergers, acquisitions, and partnerships are also common strategies employed by companies to enhance their market position and expand their product portfolio. Key players in the market include-
- Capgemini SE
- Accenture plc
- IBM Corporation
- Trianz (TRIANZ CONSULTING PRIVATE LIMITED)
- ZS Associates
- Tata Consultancy Services (Tata Group)
- Fractal Analytics
- Wipro Limited
- WNS Limited
- In January 2021, Genpact acquired Enquero, a company that provides data engineering and data-driven digital transformation services. This acquisition is intended to strengthen Genpact’s data and analytics teams and expand its capabilities for supporting clients’ digital transformation journeys.
- In February 2020, Capgemini announced its acquisition of Advectas, a top business intelligence and data science firm in Scandinavia. This move was aimed at meeting the growing client demand for Capgemini’s business intelligence and data analytics services in the region, and Advectas’ 200+ team members joined Capgemini’s Insights & Data global business line.
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