Data Analytics Outsourcing Market – By Type (Descriptive Data Analytics, Predictive Data Analytics, Prescriptive Data Analytics), By Application (Sales Analytics, Marketing Analytics, Finance Risk Analytics, Supply Chain Analytics, HR Analytics, and Others), By End User (BFSI, Healthcare, Manufacturing, Telecommunication, Retail, IT & Telecom, Media & Entertainment, Others), By Geography - Opportunity Analysis & Industry Forecast, 2024-2030.

Data Analytics Outsourcing Market Overview:

The Data Analytics Outsourcing Market size is estimated to reach $80.5 billion by 2030, growing at a CAGR of 34.3% during the forecast period 2024-2030. The increasing complexity of data and the need for specialized analytical skills are key factors driving organizations to outsource their data analytics needs. As businesses continue to prioritize data-driven strategies, the market is poised for significant expansion.

Additionally, the need for data-driven decision-making in a variety of industries is fueling the market for data analytics outsourcing, which is expanding quickly. Businesses are looking for specialized knowledge to analyze and extract insights that may be put to use as they create massive amounts of data. Manufacturing, healthcare, retail, and banking, financial services, and insurance (BFSI) are important industries that gain from outsourcing data analytics. These sectors use outsourced analytics to manage risks, streamline supply chains, deepen consumer insights, and boost operational effectiveness. The expansion of this market is mostly being driven by the complexity of data and the requirement for sophisticated analytical abilities. These factors positively influence the Data Analytics Outsourcing industry outlook during the forecast period.

Market Snapshot: 

Data Analytics Outsourcing Market - Report Coverage:

The “Data Analytics Outsourcing Market Report - Forecast (2024-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the Data Analytics Outsourcing Market.

COVID-19 / Ukraine Crisis - Impact Analysis:  

• The COVID-19 pandemic significantly disrupted the data analytics outsourcing market. Lockdowns and supply chain interruptions led to decreased production and distribution across various sectors. However, the market is showing signs of recovery due to the increased demand for data-driven decision-making. Organizations are now more reliant on data analytics to navigate the post-pandemic landscape. The need for robust data analysis to manage risks, optimize operations, and improve efficiency has driven the resurgence of this market. Technological advancements and a focus on enhancing business resilience are key factors expected to shape future trends in the data analytics outsourcing market.
• The Ukraine crisis has significantly disrupted global supply chains, impacting the data analytics outsourcing market. The conflict has led to raw material shortages and increased transportation costs, resulting in higher prices and supply delays. This instability has prompted businesses to seek alternative sources and adjust their strategies to maintain market stability and ensure continuous supply. Key companies are adapting to these challenges by exploring new supply options and implementing strategic changes to mitigate the impact of these disruptions. These measures include diversifying supply chains and investing in advanced data analytics to better forecast and respond to market volatility.

Key Takeaways:

Fastest Growth of APAC Region

Geographically, in the Data Analytics Outsourcing Market share, APAC is analyzed to grow with the highest CAGR of 36.7% during the forecast period 2024-2030. The rapid digital transformation of enterprises. For instance, in June 2024, India is adopting digital solutions at an amazing pace of 54%. the growing uptake of cutting-edge technologies and the growing understanding of data-driven decision-making are the main causes of this upsurge. Leading nations like China, Japan, and India are drawing in business from around the world by using their extensive IT experience and reasonably priced services. It is anticipated that the APAC market will expand considerably, which will help the worldwide market for data analytics outsourcing grow overall. The region's concentration on technological innovation and highly qualified workforce are driving forces behind its growth, positioning it as a significant player in the dynamics of the worldwide market.

Healthcare Segment to Register the Fastest Growth

In the Data Analytics Outsourcing Market analysis, the healthcare segment is estimated to grow with the highest CAGR of 35.8% during the forecast period. This trend is being driven by the expanding use of electronic health records (EHRs), the demand for effective healthcare management systems, and the growing importance of individualized medicine. In order to make use of cutting-edge analytical tools and knowledge without having to make the large investment necessary for in-house skills, healthcare companies are increasingly outsourcing their data analytics needs. The increasing need for operational analytics, which improves hospital administration and patient care efficiency, and predictive analytics, which aids in early disease identification and management, is driving this increase. Furthermore, the necessity of strong healthcare data analytics has been highlighted by the pandemic in order to manage public health emergencies, allocate resources optimally, and enhance patient outcomes. There is a significant expectation for growth in this section of the outsourcing industry as more healthcare providers turn to data analytics for meaningful insights. 

Marketing Analytics segment is Leading the Market

According to the Data Analytics Outsourcing Market forecast, marketing analytics held the largest market valuation of $4 billion in 2023. Market analytics are in high demand as companies realize more and more how important it is to make decisions based on data. Using marketing data analysis to enhance client segmentation, campaign efficacy, and return on investment (ROI) is the main goal of this section. This need has been made more pressing by the expansion of digital marketing platforms and the requirement to comprehend intricate client behavior. For the purpose of gaining a competitive edge and making better decisions, businesses are outsourcing their marketing analytics to make use of cutting-edge resources and knowledge. The dominance of the marketing analytics segment is indicative of a larger trend in which companies are looking to use big data to gain strategic marketing insights. With the help of this outsourcing trend, businesses concentrate on their core skills while still having access to advanced analytics that promote efficiency and growth.

Increasing Volume of Data is a Major Driver

One of the main factors propelling the market for data analytics outsourcing is the exponential increase in data generation. Large volumes of data are produced by businesses nowadays from a variety of sources, including social media, IoT devices, and transaction systems. It takes a substantial amount of knowledge and resources to manage and analyze this data internally. Businesses can make use of specialized knowledge and cutting-edge technologies through outsourcing data analytics, all without having to make large investments in staff or infrastructure. This tendency is especially noticeable in sectors where data-driven decision-making is essential for gaining a competitive edge, such as retail, banking, and healthcare. Businesses can concentrate on their core skills and obtain insightful data by outsourcing analytics.

Need for Advanced Analytical Skills is Driving the Market  

Modern data analytics requires a high level of complexity and sophistication, which calls for sophisticated talents that many firms are unable to provide. Access to a pool of highly qualified data scientists and analysts who are knowledgeable about the newest analytical tools and methodologies is made possible through outsourcing. This is especially important as machine learning, AI, and predictive analytics progress and data analytics change accordingly. These state-of-the-art capabilities help businesses boost innovation, optimize consumer experiences, and improve operations. For instance, in February 2024, GemSeek, a top supplier of customer experience analytics, is helping organizations throughout the world better understand their consumers through insights, analytics, and AI-driven prediction models. Accenture has agreed to purchase GemSeek. The purchase highlights Accenture Song's continuous investment in data and AI capabilities to support clients in expanding their businesses and maintaining relevance with customers. Accenture Song is the largest tech-powered creative group in the world. The demand for specialized knowledge is one of the main factors propelling the market for data analytics outsourcing. The ability to maintain competitiveness by utilizing state-of-the-art analytics skills is another advantage of outsourcing, in addition to cost savings. This tendency is especially noticeable in industries where data-driven decision-making is essential to success, such as finance, healthcare, and retail.

Ensuring Data Security and Privacy is a Major Challenge

Ensuring data security and privacy is one of the main issues facing the outsourcing of data analytics. Businesses are becoming more concerned about data breaches and illegal access as they depend more and more on outside providers to handle their sensitive data. Businesses need to comply with a number of data protection laws, including the California Civil Code (CCPA) and the General Data Protection Regulation (GDPR), which set tight guidelines for handling and storing personal information. Transferring substantial amounts of potentially sensitive data to outside vendors is a requirement of outsourcing data analytics. This transfer exposes the data to threats such as transmission interception, employee access without authorization, and insufficient protection at the vendor's premises. To reduce these risks, it is essential to make sure that these third-party providers follow strict data protection guidelines and have strong security measures in place. Companies and their analytics outsourcing partners must address these issues if they hope to develop enduring trust and long-term relationships.

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Key Market Players: 

Product/Service launches, approvals, patents and events, acquisitions, partnerships, and collaborations are key strategies adopted by players in the Data Analytics Outsourcing Market. The top 10 companies in this industry are listed below:

1. Accenture PLC 
2. Capgemini SE 
3. Genpact 
4. IBM Corporation 
5. Wipro 
6. Oracle Corporation
7. SAP SE 
8. Fractal Analytics Ltd 
9. Infosys 
10. Helmes AS

Scope of the Report: 

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