Analytics Services Industry in India

Overview
Sakshi Prakash: Social Media Analytics, Hewlett-Packard
Jan, 2013

Agenda
Analytics in Business - What, Why & Where
Increase in Importance of Analytics
Spreading Wings: Growth of Analytics Services
Service Providers Landscape
Analytics Services Mix & Skill Set Required

Analytics in Business
Firms typically apply analytics to business data, to describe, predict & improve performance

What

Why

Where
Retail Analytics

Discovery &
communication
of meaningful
patterns in data

Describe

Store Assortment
Price & Promotion

Predict
Improve

Analytics
Favors data
visualization to
communicate
insight

Marketing
Optimization

Simultaneous
application
of statistics, pro
gramming, OR &
business
acumen

Web Analytics
Portfolio Analysis
Risk Analytics

Supply Chain
Optimization

Source

Increase in Importance of Analytics

Contributing Factors
Big Data
Unstructured
Data

Smarter Decisions
Faster
Decisions

Advanced
Analytics
Text Analytics

Real Time
Analytics

Information
Explosion

Smarter
Decisions
Flexible Technology & Systems

Information Explosion

Faster Decisions

Go!

Source

Spreading Wings
With India supplying business analytics capabilities to MNCs at best performance to cost ratio,
scope for a professional in this field is phenomenal
The popularity and maturity over time of the BPO sector led to the
evolution of yet another form of global outsourcing known as KPO

The Indian KPO services industry is estimated to be around USD 5.7

billion currently and grew by 15-17% in the recent past
- Analytics outsourcing is a segment of the growing KPO industry

Estimated offshore knowledge

services in India by 2015

$5.6 billion Total market

opportunities
39% Business research as
percentage of market

Global data analytics outsourcing market stood at $500-550 million in

2010, of which Indian service providers delivered $375 million
- Faces stiff competition from Philippines, Russia, China, Poland and
Hungary

23% Legal process outsourcing as

percentage of market

By 2015, the data analytics market in the country is expected to reach

$1.15 billion, to constitute 21 per cent of the overall Indian knowledge
process outsourcing (KPO) market opportunities of $5.6 billion

17% Others (Social media research,

marketing & sales support

21% Data analytics services as

percentage of market

Source1

Source2 Source3

Service Providers Landscape in India

Landscape is split between pure-play analytics vendors, KPO/BPO services providers & global
companies who source analytics services from their captive centers in India
Mu Sigma
AbsolutData
Fractal Analytics

Acquisitions by Indian companies in analytics

space

Pure Play
Vendors

ZS Associates

Service
Providers
Landscape

IBM

HP
ICICI

Captive
Centers

HDFC
Wal-Mart Labs
Vodafone
6

BPO/KPO
Services
Providers

TCS
Genpact
Wipro
Accenture
eClerx
Source

Service Providers Landscape in India (cont.)

Top 10 Analytics
Employers in India

Global Top 10
Employers in Analytics

Third party vendors form the bulk of employment in analytics from Indian
context

Genpact

IBM

TCS

Accenture

Contrast it with global top 10 employers. Five out of these ten, consume
analytics in-house. Although all these firms have offshore units in India, they
still shy away from offshoring high end vocations like analytics to India

IBM

Microsoft

Top Cities by Analytics

Professionals

CTS

Google

NCR

29%

HP

Oracle

Bangalore

26%

Accenture

Bank of America

Mumbai

21%

Infosys

HP

Hyderabad

7%

HSBC

Citi

Chennai

7%

Wipro

SAP

Pune

7%

Wells Fargo

Kolkata

4%

Dell
7

Top Cities by Analytics Startups

Bangalore

31%

NCR

26%

Mumbai

18%

Pune

8%

Hyderabad

8%

Chennai

6%

Kolkata

3%
Source

Analytics Services Mix & Skill Set Required

Insight Generation/Recommending actionable insights is a critical element where
management students can add value
Skill Set Required

Communication/Presentation
Visualization/Report Writing

Newsletters
Dashboards
Infographics

Insight Generation

Model/Solution Building
Running Models, Data Analysis

Low-end

Strong Oral & Written

Communication
Logical/Analytical Thinking

High-end

Right Attitude & Eagerness to Learn

Data
Extraction

Data
Preparation

Business Acumen: Retail, FMCG, IT

etc.

Business
Research
Reporting

Domain Understanding: Marketing,

Finance, Supply Chain, HR etc.
Statistics, Operations Research
Technical VBA, SAS, R, SQL

Open Session!
Questions? Comments?

Thank you

Appendix

What is Big Data?

Back

Big data spans three dimensions: Volume, Velocity, Variety

Big data is a collection of data sets so large and complex that it becomes difficult to process using on-hand database management
tools or traditional data processing applications. The challenges include capture, curation, storage, search, sharing, analysis and
visualization
Volume: Enterprises are awash with ever-growing data of all types, easily amassing terabytes, even petabytes of information
Turn 12 terabytes of Tweets created each day into improved product sentiment analysis
Convert 350 billion annual meter readings to better predict power consumption
Velocity: Sometimes 2 minutes is too late. For time-sensitive processes such as catching fraud, big data must be used as it
streams into your enterprise in order to maximize its value
Scrutinize 5 million trade events created each day to identify potential fraud
Analyze 500 million daily call detail records in real-time to predict customer churn faster
Variety: Big data is any type of data - structured and unstructured data such as text, sensor data, audio, video, click streams,
log files and more. New insights are found when analyzing these data types together

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Monitor 100s of live video feeds from surveillance cameras to target points of interest
Exploit the 80% data growth in images, video and documents to improve customer satisfaction

What is Unstructured Data?

Back

80% of all potentially usable business information originates in unstructured form

Unstructured Data refers to information that either does not have a pre-defined data model and/or does not fit well
into relational tables
Unstructured data is typically text-heavy, but may contain data such as dates, numbers, and facts as well
This results in irregularities and ambiguities that make it difficult to understand using traditional computer programs as
compared to data stored in fielded form in databases
In 1998, Merrill Lynch cited estimates that as much as 80% of all potentially usable business information originates in unstructured
form
More recently, multiple analysts have estimated that data will grow 800% over the next five years
Unstructured information accounts for more than 70%80% of all data in organizations and is growing 1050x more than
structured data

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