Data Analytics Outsourcing Market Trends, Forecast, and Growth 2031

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.

Data Analytics Outsourcing Market Analysis

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 Market Overview

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.

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Data Analytics Outsourcing Market: Strategic Insights

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Data Analytics Outsourcing Market Drivers and Opportunities

Increased Digital Data Production to Favor Market

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.

Rapid Scalability of Outsourcing Data Analysis Needs

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.

Data Analytics Outsourcing Market Report Segmentation Analysis

Key segments that contributed to the derivation of the data analytics outsourcing market analysis are type, application, and end-user.

• Based on type, the data analytics outsourcing market is segmented into descriptive data analytics, predictive data analytics, and prescriptive data analytics.
• By application, the market is segmented into sales analytics, marketing analytics, risk & finance analytics, and supply chain analytics.
• Based on the end-user, the data analytics outsourcing market is segmented into BFSI, healthcare, retail, manufacturing, telecom, and media & entertainment.

Data Analytics Outsourcing Market Share Analysis by Geography

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.

Data Analytics Outsourcing Market Regional Insights

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.

Data Analytics Outsourcing Market Report Scope

Data Analytics Outsourcing Market Players Density: Understanding Its Impact on Business Dynamics

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:

1. Accenture
2. Capgemini SE
3. Fractal Analytics Inc.
4. Genpact
5. Infosys Limited
6. Mu Sigma Inc.

Disclaimer: The companies listed above are not ranked in any particular order.

Data Analytics Outsourcing Market News and Recent Developments

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:

• In June 2023, - Genpact announced a collaboration with Google Cloud to help businesses accelerate artificial intelligence (AI) strategies, including leveraging generative AI adoption to drive actionable business insights.

(Source: Genpact, Press Release, 2023)

• In September 2023, IBM announced plans to introduce new generative AI-based models and upgrades to Watsonx. These additions include a technical preview of Watsonx. Watsonx will soon offer governance and new rich AI data offerings. Data and the planned integration of Watsonx.ai foundation models into selected software and infrastructure products.

(Source: IBM, Press Release, 2023)

Data Analytics Outsourcing Market Report Coverage and Deliverables

The "Data Analytics Outsourcing Market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:

• Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Market dynamics such as drivers, restraints, and key opportunities
• Key future trends
• Detailed PEST/Porter's Five Forces and SWOT analysis
• Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
• Detailed company profiles