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The data analytics outsourcing market size is forecast to increase by USD 59.09 billion, at a CAGR of 47.9% between 2023 and 2028. The market is witnessing significant growth due to the focus on reducing operational costs and the rising amount of digital data production. With the increasing volumes of data being generated in various sectors such as Information Technology infrastructure, sales & marketing, and human resources, organizations are turning to data analytics outsourcing to gain insights and make informed decisions. However, challenges related to data safety and security are hindering the market growth. Robotic process automation and big data technologies are being adopted to address these challenges and improve efficiency. Procurement of data analytics services is becoming more complex, requiring a thorough understanding of the market trends and companies' capabilities. Organizations must carefully evaluate potential service providers to ensure they have the necessary expertise and security measures in place to protect sensitive data.
The market is witnessing significant growth due to the increasing demand for data-driven insights and advanced analytics capabilities. Businesses across industries are recognizing the value of data in making informed decisions and enhancing operational efficiency. In this context, outsourcing data analytics functions to specialized service providers has emerged as a popular cooperation model. Service providers offer a range of services, from data management and infrastructure setup to descriptive, predictive, and prescriptive analytics. These services help businesses gain valuable insights from their data, enabling them to make data-driven decisions and gain a competitive edge. Data management and infrastructure setup data management is a crucial aspect of data analytics. Service providers offer expertise in managing large volumes of data from various sources, ensuring data accuracy, security, and compliance.
Infrastructure setup is another critical service, with providers offering scalable and reliable solutions for data processing, storage, and analysis. Descriptive, predictive, and prescriptive analytics descriptive analytics provides insights into historical data, helping businesses understand trends and patterns. Predictive analytics uses machine learning algorithms, artificial intelligence, and business rules to identify future trends and make predictions. Prescriptive analytics goes a step further by providing recommendations based on data analysis, enabling businesses to take proactive actions. Advanced analytics technologies service providers leverage advanced analytics technologies such as machine learning, artificial intelligence, and algorithms to analyze data and provide actionable insights.
Further, connected devices and robotic process automation generate vast amounts of data, requiring sophisticated analytics tools to extract meaningful insights. The e-commerce sector is a significant contributor to the data analytics outsourcing market. With the increasing shift to online shopping, businesses need to analyze customer behavior, preferences, and trends to remain competitive. Service providers offer customized solutions for e-commerce businesses, enabling them to gain insights from their online data and optimize their operations. Data Analysis tools and generative AI Service providers offer a range of data analysis tools, from traditional BI tools to advanced analytics platforms. They also leverage generative AI to create new data and insights, enabling businesses to gain a deeper understanding of their data and make informed decisions. In conclusion, the data analytics outsourcing market offers businesses a cost-effective and efficient solution for gaining valuable insights from their data. Service providers offer expertise in data management, advanced analytics technologies, and industry-specific knowledge, enabling businesses to make data-driven decisions and gain a competitive edge.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The predictive segment is estimated to witness significant growth during the forecast period. Predictive analytics, a data-driven approach, leverages techniques such as machine learning, artificial intelligence, and statistical models to forecast future outcomes. For instance, a hotel business can predict the number of guests for a specific weekend to optimally allocate resources. Outsourcing predictive analytics to a reliable partner offers access to skilled professionals who efficiently manage and execute the analytics process, delivering valuable insights in a timely manner.
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The predictive segment was valued at USD 1.23 billion in 2018. The integration of advanced technologies like AI and ML, coupled with the growing need to anticipate business risks and opportunities, is projected to fuel the expansion of the predictive analytics segment within the global data analytics outsourcing market in the coming years. Connected device repositories and online activity data are essential inputs for these advanced analytics tools, enabling remote working and website development teams to make informed decisions.
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North America is estimated to contribute 38% 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. The North American region will dominate the market in 2023, driven by advanced economies like Canada and the United States. This region's market leadership is attributed to its focus on technological innovation and research and development. The proliferation of smartphones, wearable devices, and other connected gadgets in North America results in a significant volume of data production. The mature industrial sector in the region offers a wealth of use cases, accelerating technology adoption. Agility, cost-effective storage, and processing power are crucial factors driving the demand for data analytics outsourcing. Hybrid and public cloud solutions provide businesses with the necessary flexibility and scalability to manage their data efficiently. Risk management, including fraudulent transaction detection, is another key application area for data analytics outsourcing services.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Focus on reducing operational costs is notably driving market growth. Data analytics outsourcing has emerged as a cost-effective solution for businesses seeking to enhance their operational efficiency. By outsourcing data analytics services, organizations can minimize operational costs and focus on their core competencies. Service providers offer insightful reporting and data management solutions, enabling businesses to gain valuable insights from their data. E-commerce companies, in particular, benefit greatly from data analytics outsourcing, as it helps them expand their customer base and improve customer relationships.
Setting up an in-house data analysis team involves additional expenses for workforce management, infrastructure setup, and employee training. Outsourcing these services allows businesses to avoid these costs and access specialized expertise, making it a smart business decision. Thus, such factors are driving the growth of the market during the forecast period.
A rising amount of digital data production is the key trend in the market. The rise in data volumes has driven numerous industries to leverage Information Technology Infrastructure for data analytics, seeking a competitive edge. However, executing data analytics requires specialized expertise, making it a challenge for small companies. Consequently, companies are turning to seasoned analytics service providers for outsourcing data analytics tasks. Outsourcing data analytics offers access to advanced capabilities, enhancing a company's market position. Companies in the data entry outsourcing services market handle vast data sets, enabling them to integrate data analytics services and deliver customized solutions to clients.
This collaboration allows businesses to focus on their core competencies while benefiting from the latest data analytics trends, including sales & marketing insights, human resources optimization, and robotic process automation, among others. Big data analytics is a valuable asset for companies, and outsourcing provides an effective and cost-efficient solution for accessing these capabilities. Thus, such trends will shape the growth of the market during the forecast period.
Challenges related to data safety and security is the major challenge that affects the growth of the market. Data analytics outsourcing is a significant trend in today's business landscape, driven by advanced digital technologies such as prescriptive analytics, machine learning, business rules, artificial intelligence, and Algorithms. These technologies enable organizations to gain valuable insights from their data, optimize operations, and make informed decisions. However, with the increasing use of connected devices and IoT networks, data privacy and security concerns have become a major challenge. The large-scale combination of physical and virtual worlds necessitates a highly secured environment to protect critical data.
Interoperability issues among multiple devices in an IoT network can also lead to cybersecurity risks and data breaches. As data sharing increases, it is crucial to establish security protocols and implement best practices to mitigate these risks. Organizations must prioritize data security and privacy to ensure the success of their data analytics outsourcing initiatives. Hence, the above factors will impede the growth of the market during the forecast period.
The market forecasting 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 market growth analysis strategies.
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, Accenture SynOps.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key 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.
Data analytics outsourcing has emerged as a popular cooperation model for businesses seeking to gain valuable insights from their data without managing the complexities of infrastructure setup and data management. Service providers offer advanced digital technologies, including machine learning algorithms, artificial intelligence, and prescriptive analytics, to help businesses make informed decisions. E-commerce companies, fast-moving consumer goods, and sales & marketing teams are among the major adopters of data analytics outsourcing. The increasing volumes of structured and unstructured data from connected devices and online activity require cost-effective storage and processing power. Data analytics service providers offer diagnostic analytics to identify sales performance trends and consumer behavior changes. They also help businesses implement cybersecurity initiatives, manage IT budgets, and optimize data operations.
The use of big data, cloud migration, and hybrid cloud solutions enables scalability, agility, and cost savings. Moreover, data analytics outsourcing enables businesses to address the talent gap and leverage the expertise of service providers in areas like business rules, robotic process automation, and generative AI. Procurement teams benefit from data analytics to optimize supply chain operations, while human resources teams can use it for talent acquisition and employee performance analysis. Risk management and fraudulent transaction detection are other areas where data analytics outsourcing can add value. Overall, data analytics outsourcing offers businesses a cost-effective and efficient solution to gain actionable insights from their data.
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Market Scope |
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Report Coverage |
Details |
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Page number |
174 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 47.9% |
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Market Growth 2024-2028 |
USD 59.09 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
34.8 |
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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 38% |
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Key countries |
US, China, Germany, India, and 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 Services 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, Market condition analysis for market forecast period. |
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Customization purview |
If our market 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 Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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