The data analytics outsourcing market size is projected to reach US$ 52.94 billion by 2031 from US$ 7.30 billion in 2023. The data analytics outsourcing market is expected to register a CAGR of 28.1% in 2023–2031. Data analytics outsourcing is a collaborative strategy in which a corporation entrusts its data to a service provider and receives intelligent information.
Artificial Intelligence (AI has replaced humans in many elements of data analytics, requiring less manual labor. As a result, the nature of data analytics outsourcing focuses on how humans can efficiently design and train a ML model rather than managing an offshore staff. Large-scale data production has encouraged organizations to seek insights into consumer segmentation, understanding preferences within each category, staying current with behavioral changes, and personalization. Because of increased internet usage, enterprises now have access to a massive amount of organized and unstructured data.
Data analytics outsourcing is a collaborative strategy in which a corporation entrusts its data to a service provider and receives intelligent information. At the same time, the supplier handles everything else, including infrastructure setup and support, data management, and analysis. Outsourcing data analytics to experienced service providers improves data processing accuracy, streamlines related procedures, and provides superior insights for informed decision-making. Furthermore, data analytics outsourcing businesses use cutting-edge tools and technology that are constantly updated to offer the best possible results for their clients. In the banking industry, data analytics can be used for a variety of purposes, ranging from improving cybersecurity to minimizing customer attrition. Banks can receive and use additional data from external sources, such as trade, regulatory, and social media engagement, once it has been processed and analyzed.
The digitalization era has resulted in increased global digital data generation. The widespread use of digital devices, such as smartphones and computers, has led to a surge in digital data spending. The growing popularity of the Internet of Things (IoT) and the data collected by its devices are contributing to this surge. Data analysts struggle to process and interpret enormous amounts of digital data. Businesses are increasingly outsourcing data analytics solutions due to the high cost and early investment associated with in-house solutions. Outsourcing services can assist organizations in quickly establishing analytical frameworks, which may otherwise be difficult or time-consuming.
Outsourcing services can also help organizations develop an analytics framework quickly, which would otherwise be difficult, if not impossible, and expensive to execute with a small or medium-sized enterprise's in-house capabilities. Furthermore, leveraging the outsourced vendor's technology and resources to advance the operational efficiency of data analysis tools and processes, such as implementing an advanced data center, robotic process automation, or cloud-based software, can be a significant advantage. According to AMR, outsourcing data analytics to a third-party partner can also assist a business in using more creative solutions that it may not have explored previously. Small and medium-sized firms may not be able to employ such expertise in-house.
Key segments that contributed to the derivation of the data analytics outsourcing market analysis are type, application, and end-user.
The geographic scope of the data analytics outsourcing market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America/South & Central America. Rising social penetration data has hidden patterns that standard analytics tools cannot detect. According to We Are Social, active social network penetration in China and the United States last year was 64.6% and 72.3%, respectively, indicating a high volume of data generation demanding analytics. This encourages businesses countrywide to outsource data analytics.
The regional trends and factors influencing the Data Analytics Outsourcing Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Data Analytics Outsourcing Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 7.30 billion |
| Market Size by 2031 | US$ 52.94 billion |
| Global CAGR (2023 - 2031) | 28.1% |
| Historical Data | 2021-2022 |
| Forecast period | 2024-2031 |
| Segments Covered |
By Type
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Data Analytics Outsourcing Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Data Analytics Outsourcing Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The data analytics outsourcing market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market:
(Source: Genpact, Press Release, 2023)
(Source: IBM, Press Release, 2023)
The "Data Analytics Outsourcing Market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:
The global data analytics outsourcing market was estimated to be US$ 7.30 billion in 2023 and is expected to grow at a CAGR of 28.1% during the forecast period 2023 - 2031.
Increased digital data production is the major factors that propel the global data analytics outsourcing market.
The development of new applications is anticipated to play a significant role in the global data analytics outsourcing market in the coming years.
The key players holding majority shares in the global data analytics outsourcing market are Accenture, Capgemini SE, Fractal Analytics Inc., Genpact, and Infosys Limited.
The global data analytics outsourcing market is expected to reach US$ 52.94 billion by 2031.