April 24, 2013 – Analytic outsourcing and services are on the receiving end of worldwide interest in making the most of business data, with a new market forecast from IDC anticipating double-digit percentage growth in the next few years.
In the forecast, the analytic services market is estimated to reach $46.9 billion this year. With steady increases anticipated over the next few years, IDC puts analytic services and outsourcing spending at $70.8 billion by 2016.
IDC defines the analytic services market as business and IT consulting, systems integration services, business process outsourcing, application management, and other IT and data services and support. Separately, in-house analytics and BI solution spending is slated to grow in the 7-to-10 percent range worldwide, according to forecasts earlier this year by IDC and other firms.
Prime drivers for analytic outsourcing in particular cited by the IDC forecast include: the lack of extensive enterprise talent such as modelers, business analysts and data scientists; speed of innovation around analytic tools, especially those that automate data processes; and increased demonstration of use cases through growing use cases and data pools, according to the IDC forecast.
IDC forecast authors, Mukesh Dialani, research director, and Ali Zaidi, senior research analyst, pointed to a plus side with this surge in investment: the faster enterprise adoption of real-time and industry-specific business process and performance. However, challenging both internal and outsourced business analytics operations will be a rush on skilled professionals who may have their pick of positions, says Dialani. Analytic spending in all facets will concurrently ramp up what Dialani calls a “war on talent, as resources are scarce and a lot of effort is required to hire, train and retain talent.”
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