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The Data Analytics Outsourcing Market size is estimated to grow at a CAGR of 32.59% between 2022 and 2027. The market size is forecast to increase by USD 23,111.4 million. The growth of the market depends on several factors, including the focus on reducing operational costs, the exponential increase in data, and the market players with expertise in the field. Data analytics outsourcing is an arrangement in which an organization entrusts its data to a service provider- third-party service providers in exchange for access to comprehensive reporting. The provider is responsible for infrastructure installation and maintenance, data governance, and data analysis.
This data analytics outsourcing market report extensively covers market segmentation by type (predictive, descriptive, and prescriptive), end-user (BFSI, healthcare, retail, IT and telecom, and others), and geography (North America, APAC, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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One of the key factors driving the data analytics outsourcing market growth is the focus on reducing operational costs. The operational costs comprise the cost included in the production of goods and services, maintenance, and administration on a regular basis. The main advantage of data analytics outsourcing is that it helps to reduce operating costs and improve business efficiency.
Moreover, it also involves service offers generating data, and converting it into useful information. Therefore, there is increasing outsourcing of business processes and operations by several organizations in order to focus on and enhance their core businesses. Hence, such factors are expected to drive market growth during the forecast period.
A key factor shaping the data analytics outsourcing market growth is the rising amount of digital data production. There is an increasing adoption of data analytics by several organizations due to the generation of vast amounts of data as well as to gain a competitive edge in the market. But, this analysis of data requires technical expertise and cannot be achieved by a small company.
Moreover, there is an increasing outsourcing of data analytics by several companies to experienced analytics service providers. As a result, it allows companies to gain access to advanced data analytics capabilities which helps them to have a competitive advantage in the market. Hence, such factors are positively impacting the market which in turn will drive the market growth during the forecast period.
Issues related to data safety and security are key challenges hindering the data analytics outsourcing market growth. As there is an increasing number of devices are interconnected to the Internet and rely on the use of private and public networks, these devices are highly prone to data breaches and cyber security attacks. Additionally, the IoT ecosystem comprises multiple devices which can lead to interoperability issues.
Moreover, there is an increasing chance of potential economic loss from cyber attacks in industries when compared to privacy breaches of personal data. As a result of these cyber attacks, it will limit the implementation of IoT solutions. Hence, such factors is negatively impacting the market which in turn will hinder the market growth during the forecast period.
The predictive segment is estimated to witness significant growth during the forecast period. The predictive analytics segment comprises the extensive use of data to predict future outcomes. Some of these include the use of data analysis techniques, machine learning (ML) techniques, AI, and statistical models. For instance, there is an increasing adoption of predictive analytics across the hotel segment to foresee the number of guests who will stay at a particular location on a particular weekend to ensure the necessary personnel and resources to meet the demand.
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The predictive segment was the largest segment and was valued at USD 972.40 million in 2017. Therefore, several businesses outsource the analytics process to a trusted partner and thereby access trained resources who will efficiently execute and manage the analytics process and offer timely insights. Furthermore, several factors such as the the increasing adoption of advanced technologies including AI and ML, and the growing demand for predicting the risks and opportunities of different businesses are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.
The increasing digitization of core processes fuels the BFSI segment which will increase the market growth. There is an increase in the number of digital transactions and the addition of new users in the BFSI sector. As a result, several financial organizations are outsourcing their non-critical content to data analytics outsourcing providers in order to improve their operational efficiency. The main advantage of data analytics is that it enables financial organizations to meet challenges including compliance requirements, content management, security, transparency, and availability across platforms and geographies. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.
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North America is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Some of the main factors which are significantly contributing to the growth of the global data analytics outsourcing market in North America are the presence of different developed economies including Canada and the US, and the increasing focus on innovations derived from research and development (R&D) and diverse technology.
Additionally, North America is a known hub for large-scale data production as there is an increase in the use of smartphones, wearable gadgets, and other smart-connected devices. Moreover, there is a faster rate of adoption of new technologies across industries in North America as most of them are really mature. One of the main countries which significantly contribute to the market growth in North America is the US as it is the industrial capital of the world and an early adopter of advanced technologies across industries. Hence, such factors are expected to drive the market growth in the region during the forecast period.
In 2020, during the COVID-19 pandemic, the growth of the global data analytics outsourcing market witnessed significant growth due to the increasing demand for IoT technology from the health sector to prevent the spread of COVID-19 in North America. However, in 2021, the initiation of large-scale vaccination drives lifted the lockdown and travel restrictions, which led to increased funding for the development of software infrastructure and connectivity across end-user industries. Such factors are expected to drive the market during the forecast period.
The data analytics outsourcing market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Data Analytics Outsourcing Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Accenture Plc: The company offers data analytics outsourcing solutions and services such as Data transformation, Solutions.AI, Generative AI, and Accenture SynOps.
Capgemini Service SAS: The company offers data analytics outsourcing solutions and services such as People Analytics, Data-driven Finance, Risk and Compliance, Data Strategy and Factory, Intelligent Process, es and Performance.
Cognizant Technology Solutions Corp: The company offers data analytics outsourcing solutions that connect business outcomes with technology, powering the digital transformation that is driving the data economy.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The data analytics outsourcing market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Data Analytics Outsourcing Market Scope |
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Report Coverage |
Details |
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Page number |
163 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 32.59% |
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Market growth 2023-2027 |
USD 23,111.4 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
30.58 |
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Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
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Performing market contribution |
North America at 35% |
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Key countries |
US, China, India, Germany, and the UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Accenture Plc, Capgemini Service SAS, Cognizant Technology Solutions Corp., Deloitte Touche Tohmatsu Ltd., DXC Technology Co., ElectrifAi LLC, Ernst and Young Global Ltd., Fractal Analytics Pvt. Ltd., Genpact Ltd., HCL Technologies Ltd., Infosys Ltd., International Business Machines Corp., KPMG International Ltd., Mahindra and Mahindra Ltd., Mu Sigma, Nippon Telegraph and Telephone Corp., Tata Consultancy Services Ltd., Trianz, Wipro Ltd., and ZS Associates Inc. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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