Market Size of Data Analytics Outsourcing Industry
Study Period | 2019 - 2029 |
Market Size (2024) | USD 8.11 Billion |
Market Size (2029) | USD 60.02 Billion |
CAGR (2024 - 2029) | 34.33 % |
Fastest Growing Market | Asia Pacific |
Largest Market | North America |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Data Analytics Outsourcing Market Analysis
The Data Analytics Outsourcing Market size is estimated at USD 8.11 billion in 2024, and is expected to reach USD 60.02 billion by 2029, growing at a CAGR of 34.33% during the forecast period (2024-2029).
Artificial Intelligence (AI)/Machine Learning technology has replaced humans in many aspects of data analytics, thus, requiring less input from human manual work. Therefore, the nature of data analytics outsourcing skews toward how humans can effectively create and train a machine learning model rather than how businesses could manage an offshore team.
- According to IBM, the last two years have created over 90% of the world's data. And while there is a talent gap, analytics solutions are expanding because they are being accepted by a variety of sectors, including BFSI and retail, to mention a few. For instance, it has been noted that FMCG firms struggle with inconsistent sales performance due to a lack of diagnostic analytics, the ability to pinpoint what terrible bad performance is, or the capacity to produce precise sales forecasts.
- The manufacturer needed money and time to expand internal data analytics to gain quick insight, they turned to analytics outsourcing before the COVID-19 outbreak, and many organizations were outsourcing their data operations; the crisis accelerated this practice even further-additionally, businesses investing a significant portion of their IT budgets in cybersecurity initiatives. DataScience blog reports that a recent survey revealed that 37% of corporate leaders claimed they were already preparing to reduce the budgets for their IT departments. The same study discovered that 28% of companies want to relocate some of their data analytics programs overseas.
- Large-scale data production has prompted businesses to look for insights, including consumer segmentation, understanding of preferences within each category, staying up to speed with changes in behavior, and customization. Due to increased internet usage, organizations have access to a vast amount of structured and unstructured data. Due to these advantages, multinational corporations now have their big data evaluated for practical knowledge.
- Adoption also included cloud migration because these capabilities complement the ability to gather Big Data and are intrinsic to cloud features like scalability, agility, cost-effective storage options, and access to massive processing power. In addition, cloud computing technology is now widely used, and the cloud's seamless connectivity makes it available and encourages the development of Big Data Byce to the annual State of the Cloud Report from Right Scale, 78% of firms use hybrid cloud, compared to 19% who use public cloud. Consequently, the development of cloud technology is accelerating the development of the industry under investigation.
Data Analytics Outsourcing Industry Segmentation
A data-driven organization might allocate its data to a service provider in the data analytics outsourcing model to gain access to intelligent reporting. The provider neglects data administration, data analysis, and infrastructure setup and support. The desire for immediate insights drives data analytics outsourcing because firms find it time-consuming to handle the data created.
The data analytics outsourcing market is segmented by type (crm analytics, supply chain analytics, risk analytics, financial analytics), end-user industry (automotive, manufacturing, retail, bfsi, it, telecom, oil & gas), and geography (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa). The market sizes and forecasts are provided regarding value (USD) for all the above segments.
Type | |
CRM Analytics | |
Supply Chain Analytics | |
Risk Analytics | |
Financial Analytics | |
Other Types |
End-user Industry | |
Retail | |
Automotive | |
Manufacturing | |
BFSI | |
IT and Telecom | |
Oil & Gas | |
Other End-user Industries |
Geography | |
North America | |
Europe | |
Asia-Pacific | |
South America | |
Middle East and Africa |
Data Analytics Outsourcing Market Size Summary
The Data Analytics Outsourcing Market is poised for significant growth, driven by the increasing adoption of artificial intelligence and machine learning technologies, which are transforming traditional data analytics processes. This shift is reducing the reliance on human input and enhancing the efficiency of data analysis. The market is expanding as businesses across various sectors, such as banking, finance, and retail, recognize the value of data analytics in gaining insights from vast amounts of structured and unstructured data. The COVID-19 pandemic has further accelerated the trend of outsourcing data analytics, as companies seek to optimize their operations and make data-driven decisions quickly. The integration of cloud computing technologies is also playing a crucial role, offering scalability, agility, and cost-effective storage solutions that complement big data analytics capabilities.
The market landscape is characterized by a fragmented environment with numerous vendors providing data intelligence services to large enterprises and SMEs. Major players like TCS, Genpact, and Wipro are leading the charge in this space, with significant investments in analytics services and partnerships to enhance their offerings. The demand for data analytics outsourcing is fueled by the need to manage the growing volume of data generated by businesses and to leverage insights for strategic decision-making. As companies continue to invest in advanced analytics and AI solutions, the market is witnessing a surge in collaborations and technological advancements, providing sustainable competitive advantages and driving the industry's growth trajectory.
Data Analytics Outsourcing Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Overview
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1.2 Impact of COVID-19 on the market
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1.3 Industry Attractiveness - Porter's Five Forces Analysis
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1.3.1 Bargaining Power of Suppliers
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1.3.2 Bargaining Power of Consumers
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1.3.3 Threat of New Entrants
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1.3.4 Intensity of Competitive Rivalry
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1.3.5 Threat of Substitute Products
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1.4 Industry Value Chain Analysis
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1.5 Market Drivers
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1.5.1 Increasing Volume and Variety of Data being Generated are the Major Driving Factors for this Industry
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1.5.2 Increasing Adoption of Data Analytics Outsourcing in BFSI
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1.6 Market Challenges
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1.6.1 Lack of Skilled Professionals
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2. MARKET SEGMENTATION
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2.1 Type
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2.1.1 CRM Analytics
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2.1.2 Supply Chain Analytics
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2.1.3 Risk Analytics
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2.1.4 Financial Analytics
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2.1.5 Other Types
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2.2 End-user Industry
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2.2.1 Retail
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2.2.2 Automotive
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2.2.3 Manufacturing
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2.2.4 BFSI
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2.2.5 IT and Telecom
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2.2.6 Oil & Gas
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2.2.7 Other End-user Industries
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2.3 Geography
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2.3.1 North America
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2.3.2 Europe
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2.3.3 Asia-Pacific
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2.3.4 South America
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2.3.5 Middle East and Africa
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Data Analytics Outsourcing Market Size FAQs
How big is the Data Analytics Outsourcing Market?
The Data Analytics Outsourcing Market size is expected to reach USD 8.11 billion in 2024 and grow at a CAGR of 34.33% to reach USD 60.02 billion by 2029.
What is the current Data Analytics Outsourcing Market size?
In 2024, the Data Analytics Outsourcing Market size is expected to reach USD 8.11 billion.