Although outsourcing providers have been offering analytics services for the last 15 years, it is only now that we are seeing a renewed and sustained interest in analytics. The scope of buyers has also increased with interest for analytics now coming from across functions like procurement, marketing and finance, apart from the traditional ‘quants' and certain specialized functions.
Why now? The changing economic environment is certainly a big factor, as it is changing the way corporations conduct business. Today,
- Organizations expect faster ROI,
- The intense competition, shorter time-to-market and demanding customers require analytics to acquire and retain customers,
- Regulation has become more stringent, and
- Communication channels have changed and social media is gaining importance.
Another reason is that the amount of data available is exploding, and analytics is one of the best tools to make sense of this Big Data. Stephen Morris, senior business architect, business architecture + transformation UK for Wipro, says that companies recognize they have to leverage the data flow to build competitive strategies. But with Big Data becoming so enormous, many enterprises do not possess the requisite tools to make the best use of the knowledge buried inside. Analytics is "a fast-emerging solution to this challenge. But it's not just about unraveling historical trends. It provides a compelling tool to predict," he explains.
Read more about the growing importance of Analytics in the article, "Why Analytics Is So Important Today and the Eleven Trends Impacting It". The article provides greater details on the following eleven trends that are impacting Analytics, Big Data and Business Intelligence:
- There is a shift from B2B to B2C.
- Analytics is becoming a competitive differentiator.
- Corporations want predictive and prescriptive modeling.
- Analytics makes processes more strategic to the business.
- Analytics can combine disparate data streams to improve business results.
- Enterprises want data available at all times in real time.
- Enterprises want consolidated data.
- The shortage of mathematicians and statisticians may become a problem for both service providers and buyers.
- Top talent will be happier campers with the analytics now available.
- Service providers will bring more people onshore to do the analytics work.
- The growing importance of analytics presents a huge opportunity for outsourcers who understand it.
What do you think? Are there any trends missed out? Do write in with your thoughts - as always, we'd love to hear from you!