Indian analytics mkt to cross the USD 2 bn mark by FY2018

MUMBAI, INDIA: To address the challenges faced by domestic analytics market in India, NASSCOM has unveiled a report on Industrialization of Analytics in India: Big Opportunity, Big Outcome; in association with Blueocean Market Intelligence - a global analytics and insight provider.

The report showcases the present state of affairs, key drivers and challenges along with the growth potential of analytics adoption in India. While the domestic market is still nascent, the report predicts the Indian analytics market to cross the USD 2 billion mark by FY2018 - growing at a CAGR of 25 percent. Analytics is increasingly becoming a core competent for organizations to formulate business driven strategies and derive value.

"The growing economy, and increase in internet, and mobile penetrations have formed the basis of analytics growth in India. The overriding major criteria while selecting analytics solutions and services were the ROI (return on Investment), proven references and assistance in setting up the analytics system," said Mr. Ashwin Mittal, President, Blueocean Market Intelligence. "While the BFSI, eCommerce, telecom sectors are the trendsetters in analytics adoption, sectors such as retail, manufacturing, media and advertising are also moving towards adopting analytics. Healthcare and Education sectors are yet to make a mark in deploying analytics. "

The report emphasizes on organizing need to ‘industrialize' analytics for sustained long term value. While most firms begin analytics initiatives, very few are able to integrate analytics into the organizational fabric and generate long term value. This is where; organizations should aim for ‘Industrialization of analytics'.

"Industrialization of analytics implies analytics programs that are tightly tied to business outcomes, delivered via engagement models with standardize tools and processes", adds Mr. Mittal.

Strong vendor ecosystem, strong analytics capabilities, scalability and leadership provide India an advantage of a mature ecosystem to promote domestic adoption of analytics.

KS Vishwanathan, vice president, NASSCOM, said: "Technologies such as Social Media, Mobility, Big Data and Analytics and Cloud are reshaping businesses across sectors. Big Data and Analytics are also adding another Business Intelligence dimension that is enabling the creation of hyper-intelligent software platforms that address myriad issues, and building an organization that is more real-time and responsive to marketplace changes. The report highlights how advanced big data analytics is an effective way to discover new opportunities such as new business segments, best suppliers, associate products of affinity and sales seasonality. The report aims to showcase how analytics has moved up from being a reporting tool to a predictive to a perspective mechanism and thus helping organizations operate in dynamic times."

Even though India has a vibrant analytics vendor ecosystem, providing business case, data veracity remains the supply-side challenge. Apart from this, most Indian organizations adopting analytics are looking at short term results; this highlights the ignorance in Indian organizations regarding analytics and its potential benefits. Low level of commitments from CXO levels and reluctance to change in the existing internal IT structure is some of the additional challenges that analytics firm face.

According to the report, in order to tap the domestic analytics market opportunity, industry should focus on increase awareness about analytics, address cost concerns, bring in standardization and leverage processes tools and technology. Analytics, if used as a cross functional unit can provide enormous business benefits to organizations adopting it.

The analytics industry faces a challenge in finding resources with domain knowledge and business and program management skills. Developing analytics talent pool - tools, domain skills, business analysis remain a bigger focus area to tap the potential opportunity in the domestic analytics market.