Business analytics services spending will total $51.6 billion in 2014 and grow to $89.6 billion in 2018, representing a 14.7 percent compound annual growth rate, according to a new study from International Data Corp.
"Talent shortage coupled with the high interest in adoption of new technologies will continue to drive growth in business analytics services spending at the worldwide level,” Ali Zaidi, senior research analyst, IT consulting and systems integration strategies at IDC, said in a statement.
“In addition, the desire to consume the entire lifecycle of business analytics services will drive spending growth across all business analytics services lines in the near future," Zaidi said.
Business analytics services saw a drop in spending growth in 2013, although growth remained in double digits, according to the report. Other findings are that the overall five-year CAGR for the project-based business analytics services will be 14.3 percent, and the five-year CAGR for business analytics outsourcing services will be 12.8 percent.
The study shows that a lack of internal analytics resources, including mathematicians, business analysts, and statisticians, is forcing businesses to seek external options to meet their business analytics needs. Business analytics services providers that continue to invest in hiring relevant talent will have a direct impact on adoption of these services, it says.
"As more business data gets consolidated and is made available to executives, outsourced big data and analytics services will continue to get embedded and pervade deeper into the enterprise,” Mukesh Dialani, research director, worldwide BPO and engineering services, at IDG, said in a statement. “As these services become a key component in ensuring the agility and effectiveness of an enterprise's business processes and vendors are able to provide a diverse range of industry-specific use cases and assist customers in preparing a business case, customer adoption will increase.”
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