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India to maintain lead in analytics services

Avendus Capital study says data analytics services to become $1.15 bn by 2015

Bibhu Ranjan Mishra  |  Bangalore 

At a time when is becoming more pervasive helping businesses across various sectors, India is expected to maintain its edge over major offshore destinations who present services

According to a recent report by a financial services firm Avendus Capital, India will continue to establish its leadership position in services over other competing regions such as China, Philippines, Eastern Europe and Latin America. The demand for this service from India will be driven by a host of factors such as availability of talent pool, maturity of the industry and wide spectrum of services.

Data is the science of using raw data by extensive use of statistical and quantitative analysis for the purpose of drawing business related conclusions and for predicting business outcomes. Among the industries, banking and financial which is one of the earliest adopters of knowledge services is the largest user of the services followed by retail, healthcare and pharmaceutical industries.

According the report, global data market in 2012 stood at $500-500 million in 2010 out of which Indian service providers delivered $375 million. This accounted about 19 per cent of India’s $2 billion offshore knowledge services (KPO) market. By 2015, the data market in India is expected to reach $1.15 million to become 21 per cent of the overall Indian market opportunities of $5.6 billion.

“Although this market has been around since early 2000's, the exponential growth in data generation, significant decrease in data storage cost and increase need of to make decisions based on actionable insights, have increased the demand for data services,” said Amit Singh, Executive Director (Technology and Outsourcing),

He said the US which is the biggest market for data is estimated to have a shortage of 140,000 – 190,000 professionals with analytical capabilities by 2018. “This talent supply gap is expected to boost demand for services what the Indian service providers could leverage on,” he added.

The service providers’ landscape in India is split between pure-play vendors, knowledge process (KPO) services providers and BPO services providers who also provide services as a part of their offerings. Besides, global also source services from their captive centres in India.

Among the pure-play vendors, Sequoia Capital and General Atlantic-invested Mu Sigma is said to be the biggest in this space in India. Besides, there are about 15 different such as AbsolutData, Fractal Analytics, ZS Associates, LatentView and Opera Solutions who are trying to position themselves in this market.

Among the large BPO services providers, has a large practice with close to $200-300 million coming from this business. The company has grown its business organically as well through acquisitions. In the past, acquired such as Symphony Marketing Solutions and EmPower Research which gave a boost to its business.

is an exciting opportunity for Indian players and for India. Also, as we spoke with clients and thought leaders in the US and Europe, it became apparent that India has a leadership position and is well-ahead of the curve in marketing analytics,” says Anil Kaul, CEO, AbsolutData.


First Published: Sat, September 29 2012. 18:16 IST