Top global location for setting up analytics team – A Talent and Ecosystem Perspective

A GrowthPraxis report titled “Top global location for setting up analytics team –  A Talent and Ecosystem Perspective”. This report is available for purchase at GrowthPraxis. For enquiries, please contact inquiry@growthpraxis.com or call  +91-80-41231576.

Index

I.        Executive summary

II.       Introduction to analytics

III.      Current scenario and future of global analytics products (software tools) spending (2013 and 2018)

  • Market size split by regions (NA, SA, Europe, etc.)
  • Market size Split by industry (BFSI, Retail etc.)

IV.   Current scenario and future of global analytics services spending (2013 and 2018)

  • Market size split by regions (NA, SA, Europe, etc.)
  • Market size split by industry (BFSI, Retail etc.)
  • Market size split by In-house versus Outsourcing

V.    Changing landscape of analytics

  • Increasing need for outsourcing analytics services
  • Emergence of big data and its effect on analytics outsourcing
  • Key drivers and inhibitors for outsourcing analytics services
  • Emergence of predictive analytics and its effect on outsourcing

VI.   Current scenario and future of outsourcing analytics services

  • Market size split by offshore and onshore (2013 and 2018)
  • Market size split by regions (demand Side)
  • Market size split by key countries (supply Side)
  • Key acquisitions in analytics space by outsourcing vendors

VII.  Talent landscape in key supply countries – analysis of employed pool and fresh graduates

  • Employment in analytics product development by key supplying countries
  • Split of installed talent pool in analytics outsourcing by key supply countries by functions (customer, sales.…)
  • Current availability and projections of analytics suitable talent pool in supply countries (Fresh talent pool)

VIII. Recommendations to firms in setting up analytics center of excellence (Case Study)

  1. Executive summary

In the recent past, the world has seen rapid increase in the amount of published information or data. As the amount of available data grew the problem of managing the information becomes more difficult. Furthermore, rapid increase in globalization and liberalization resulted in fierce competition within companies to market their products, increase their revenues, and grab most of the customers and do all of these at little or no extra cost. As a result, firms needed to be proactive instead of being reactive. Existing business intelligence tools were not capable enough to mine large amount of data into meaningful information which could drive decisions. These lead to emergence of analytics in early 2000.  The emergence of analytics has helped in scrutinizing and correlate present and past historical trends, predict future trends and consumer behaviors in the market and recommend the appropriate actions.

The outlook of analytics products and services market is very promising. There is a buoyant demand for analytics products across the globe. Worldwide analytics products market is expected to grow at 9.4% compound annual growth rate (CAGR) over the next five years. North America is the largest spender on analytics products and would continue to do so in near future.

1

The global spending on analytics services is expected to witness a cumulative growth of 14% over the next 5 years. Globally, North America is the leading spender on Analytics services. BFSI industry spends the most on analytics, followed by Telecom & High Tech. Currently only about 9.4% of the global services spending is outsourced. However outsourcing of analytics services is expected to grow exponentially at a CAGR of 21.4% in the next 5 years. Specialization, speed-to-market, lower cost and better process quality through forced standardization will drive analytics outsourcing. However, data security remains a key inhibitor in the growth of analytics outsourcing.

Talent supply is another crucial factor for the outsourcing of analytics. India and China are unmatched analytics hubs because of their pool of talent in quantitative disciplines like mathematics and economics. Countries like Argentina, South Africa, and Romania are the emerging destinations, where analytics can be outsourced. In the next 5 years, India and China will continue to produce large talent pool which will cater to the surging analytics demand.

2

At present; India, China, Philippines, Poland and Singapore are the key countries to where analytic services are outsourced. India and China currently dominate the analytical outsourcing space because of their large talent pool with related domain knowledge. In the coming years; it is expected that India, China and Philippines would still lead the outsourcing of analytics services. In the recent past countries such as Sri Lanka, South Africa, Romania, Poland have emerged as suitable destination for analytics.

Split of Installed Talent Pool across these 5 supply countries by type of work and functions

These top 5 countries have a combined analytical talent pool of 46,000+ professionals. More than 36,000 of those work on low end analytics work such as MIS and descriptive analytics while only about 10,000+ work on high end analytics such as big data, predictive and prescriptive analytics.

3

In the future, it would be worth seeing whether India and China would continue to dominate the analytics outsourcing or would companies follow a hub and spoke model with India or China as the hubs with delivery centers near shore.