Data Analytics Outsourcing Market Report

Data Analytics Outsourcing Market Overview:

The global data analytics outsourcing market size reached US$ 11.3 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 109.1 Billion by 2032, exhibiting a growth rate (CAGR) of 27.8% during 2024-2032. There are several factors that are driving the market, which include the growing need for enhanced decision-making, the thriving finance sector, collaborations between key players, and rising focus on scalable and flexible solutions in various industries.

Data Analytics Outsourcing Market Analysis:

• Major Market Drivers: One of the key market drivers include the complexity of data. Moreover, there is an increase in the need to focus on core competencies, which is acting as another growth-inducing factor.
• Key Market Trends: The rising need for enhanced decision-making, along with the thriving finance sector, is a main trend in the market.
• Geographical Trends: North America exhibits a clear dominance, accounting for the biggest market share owing to various mergers and acquisitions (M&As) among major players.         
• Competitive Landscape: Various players in the data analytics outsourcing industry are Accenture PLC, Capgemini Services SAS, Fractal Analytics Inc., Genpact Limited, Infosys Limited, International Business Machines (IBM) Corporation, Mu Sigma Inc., ElectrifAi LLC, Tata Consultancy Services Limited, Trianz Incorporated, Wipro Limited, ZS Associates Inc., among many others.
• Challenges and Opportunities: Data security and privacy concerns are a key market challenge. Nonetheless, the rising adoption of advanced technologies and the availability of innovative service models, is anticipated to overcome these challenges and offer market opportunities.

Data Analytics Outsourcing Market Trends:

Rising Need for Enhanced Decision-Making

Accenture and Salesforce made investments on November 6, 2023 to develop the Salesforce Life Sciences Cloud, which includes new features, resources, and accelerators driven by AI and data. The companies leveraged their joint generative AI acceleration hub to develop new solutions and use cases for Salesforce Life Sciences Cloud. This assists in accelerating the deployment of data and analytics capabilities and support decision-making and operations. Moreover, companies face complex challenges that require quick and accurate decision-making. The insights provided by data analytics help firms overcome these obstacles. Relying on specialized suppliers for outsourcing guarantees access to superior analytics that facilitate improved decision-making. Organizations require real time insights to stay competitive. Outsourced data analytics services include real time data processing and analysis that are beneficial in providing timely insights that help businesses react quickly to market changes and emerging trends.

Thriving Finance Sector

On 29 June 2023, Moody's Corporation and Microsoft established a new strategic alliance on June 29, 2023, with the goal of providing financial services and global knowledge workers with next-generation data, analytics, research, collaboration, and risk solutions. Microsoft Azure OpenAI Service in partnership with Moody's extensive data and analytical skills produces cutting-edge solutions that improve risk assessment and corporate intelligence. In addition, the banking industry is highly regulated, necessitating that companies adhere to a wide range of rules and regulations. Financial organizations can manage compliance and ensure conformity to several laws and standards by outsourcing data analytics. Apart from this, these organizations use predictive analytics and sophisticated risk management models to improve their ability to recognize and manage risks.

Collaborations Between Key Companies

On 18 October 2023, Infosys, a leader in next-generation digital services and consulting worldwide, announced that it is expanding its partnership with Google Cloud to support businesses in creating AI-powered experiences by utilizing Google Cloud's generative AI solutions and Infosys Topaz offerings. Infosys is able to expand on its current knowledge of data, analytics, and AI on Google Cloud. Infosys and Google Cloud collaborated in order to provide a suite of industry solutions and revolutionary AI platforms for a variety of business scenarios. Additionally, partnerships enable companies to pool their resources and specialties and improve their data analytics offerings. A partnership between a data analytics firm and a cloud service provider can offer integrated solutions that include advanced analytics capabilities hosted on a robust cloud infrastructure. Collaborations also facilitate access to cutting-edge technologies.

Data Analytics Outsourcing Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on type, application, component, and vertical.

Breakup by Type:

• Descriptive
• Predictive
• Prescriptive
   

Predictive accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the type. This includes descriptive, predictive, and prescriptive. According to the report, predictive represented the largest segment.

Predictive analytics utilize statistical algorithms, machine learning (ML), and historical data to predict future trends. It provides companies a competitive edge by allowing them to foresee user behavior, market trends, and possible hazards. Companies that can predict future occurrences and take proactive steps to address them will be able to maintain an advantage over their competitors. Organizations can also utilize predictive analytics to look at user data and project future behaviors, preferences, and buying patterns.

Breakup by Application:

• Sales Analytics
• Marketing Analytics
• Finance and Risk Analytics
• Supply Chain Analytics
• Others
   

Marketing analytics hold the largest share of the industry

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes sales analytics, marketing analytics, finance and risk analytics, supply chain analytics, and others. According to the report, marketing analytics accounted for the largest market share.

Comprehensive information on user activity, preferences, and purchase trends can be found in marketing analytics. This enables companies to customize their marketing campaigns to their target market's unique requirements and preferences. In addition, firms can identify effective initiatives by evaluating data from various marketing channels. They may improve their marketing strategy and utilize their resources more effectively. Targeted advertisements, personalized emails, and personalized product recommendations are just a few of the tailored marketing strategies made possible by marketing analytics. Companies can use marketing analytics to measure the performance of their marketing initiatives in real time.

Breakup by Component:

• Solutions
• Services
   

The report has provided a detailed breakup and analysis of the market based on the component. This includes solutions and services.

Solutions has platforms and tools for data integration, storage, and quality assurance. To enable analysis, solutions make sure that data is collected, stored, and maintained. By utilizing past data analysis to predict future trends and recommend actions, solutions provide deeper insights.  Furthermore, solutions examine data from corporate operations in order to increase productivity, efficiency, and process optimization.

Services offer expert advice on data design, strategy, and implementation. Consultants help companies to develop and implement frameworks for data analytics that are specifically tailored to their needs.

Breakup by Vertical:

• Retail
• Automotive
• Manufacturing
• BFSI
• IT and Telecom
• Others
   

BFSI exhibits a clear dominance in the market 

A detailed breakup and analysis of the market based on the vertical have also been provided in the report. This includes retail, automotive, manufacturing, BFSI, IT and telecom, and others. According to the report, BFSI accounted for the largest market share.

The BFSI sector relies on data analytics for risk management. Predictive analytics helps in assessing credit risks, detecting fraud, and managing market risks. By outsourcing these functions, financial institutions can leverage advanced analytics techniques to mitigate risks effectively. Financial institutions must comply with numerous regulations and reporting requirements. Data analytics outsourcing helps these institutions manage and analyze large datasets to ensure compliance with regulations requirements. On 4 October 2023, Krungsri (Bank of Ayudhya PCL), Thailand’s leading financial institution, announced a five-year partnership with Kyndryl, the world’s largest IT infrastructure services provider. Kyndryl will improve the bank's ability to adapt to market changes, fortify its legacy systems, and enhance its user-centric digital banking services through the implementation of data analytics, cloud solutions, and automation.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America leads the market, accounting for the largest data analytics outsourcing market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America represents the largest regional market for data analytics outsourcing.

North America, particularly the United States, has advanced technological infrastructure, which supports the extensive use of data analytics. The availability of cutting-edge technology and high-speed internet facilitates efficient data processing and analysis, which is impelling the market growth in the region. In addition, various collaborations and M&As among major players are supporting the market growth. For instance, on 17 May 2024, Accenture plc, a US multinational professional services company headquartered in Dublin, agreed to acquire OPENSTREAM HOLDINGS and its subsidiaries, Open Stream and Neutral, to help clients reinvent their businesses with advanced digital technologies and become truly data driven. The acquisition will strengthen Accenture’s capabilities to support clients in system and application modernization and help them adopt cloud, data, AI, and the Internet of Things (IoT) technologies.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the data analytics outsourcing industry include Accenture PLC, Capgemini Services SAS, Fractal Analytics Inc., Genpact Limited, Infosys Limited, International Business Machines (IBM) Corporation, Mu Sigma Inc., ElectrifAi LLC, Tata Consultancy Services Limited, Trianz Incorporated, Wipro Limited, and ZS Associates Inc.
  
  (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
   
• Key players in the market are investing in innovation labs to develop new analytics solutions and services. These labs focus on emerging technologies such as AI, ML, and blockchain. They are offering tailored analytics solutions for various industries including finance, healthcare, and retail, addressing specific industry challenges and needs. Furthermore, top players are focusing on integrating analytics solutions with cloud platforms, providing scalable and flexible analytics services. They are also engaging in partnerships to expand their capabilities and market reach. For instance, on 30 May 2023, Capgemini and Google Cloud announced a major expansion of their long-standing strategic partnership in data analytics and AI, creating a global GenAI Google Cloud Center of Excellence (CoE) to help enterprises realize the full potential of AI technologies. The new CoE will help clients advance their business transformation goals, enhance engagement with clients, and accelerate value creation from AI investments.

Data Analytics Outsourcing Market News:

• 7 June 2023: Genpact announced that it is working with Google Cloud to help businesses accelerate artificial intelligence (AI) strategies including taking advantage of generative (GenAI) adoption to drive actionable business insights. This partnership will leverage Google Cloud's advanced GenAI capabilities to cater to enterprises in key industries including consumer goods, retail, life sciences, healthcare, hi-tech, and financial services. Through this partnership, Genpact and Google Cloud will accelerate their shared clients' cloud, data, and analytics modernization journeys to address the evolving needs of today's businesses.
• 20 February 2024: Wipro Limited, a leading technology services and consulting company, launched Wipro Enterprise AI-ready platform, a new service that will allow clients to create their enterprise-level, fully integrated, and customized AI environments. The Wipro Enterprise AI-Ready Platform leverages the IBM watsonx AI and data platform, including watsonx.ai, watsonx.data, and watsonx.governance and AI assistants, to deliver to clients an interoperable service that helps accelerate AI adoption.

Data Analytics Outsourcing Market Report Scope:

Key Questions Answered in This Report:

• How has the global data analytics outsourcing market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global data analytics outsourcing market?
• What is the impact of each driver, restraint, and opportunity on the global data analytics outsourcing market?
• What are the key regional markets?
• Which countries represent the most attractive market?
• What is the breakup of the market based on the type?
• Which is the most attractive type in the market?
• What is the breakup of the market based on the application?
• Which is the most attractive application in the market?
• What is the breakup of the market based on the component?
• Which is the most attractive component in the market?
• What is the breakup of the market based on the vertical?
• Which is the most attractive vertical in the market?
• What is the competitive structure of the data analytics outsourcing market?
• Who are the key players/companies in the global data analytics outsourcing market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the data analytics outsourcing market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the data analytics outsourcing industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.