Data Analytics Outsourcing Market Drivers and Opportunities [2021-2031]
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
Market Size Value in US$ 3,077.65 Million in 2019 Market Size Value by US$ 19,357.09 Million by 2027 Growth rate CAGR of 25.8% from 2020-2027 Forecast Period 2020-2027 Base Year 2020
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Data Analytics Outsourcing Market: Strategic Insights
| Market Size Value in | US$ 3,077.65 Million in 2019 |
| Market Size Value by | US$ 19,357.09 Million by 2027 |
| Growth rate | CAGR of 25.8% from 2020-2027 |
| Forecast Period | 2020-2027 |
| Base Year | 2020 |
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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 Report Scope
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
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Type ; Application ; and End-user
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
US, Canada, Mexico, UK, Germany, Spain, Italy, France, India, China, Japan, South Korea, Australia, UAE, Saudi Arabia, South Africa, Brazil, Argentina
Frequently Asked Questions
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.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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