GS100: 2011 Global Services Compendium
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A recent study of Chief Information Officers (CIOs) by IBM reveals that the top strategic technology investment over the next five years at outperforming midsize organizations is business analytics.

The study reflects that within the broader category of analytics, 64 percent of midmarket CIOs said they are using data warehousing platforms and visual dashboards. Another 63 percent are using MDM (master data management). Master data refers to information entities, such as specific product or supplier names that are supposed to be consistent across a number of systems and applications within a company.

The heightened need for business analytics has begun to drive the demand for outsourced analytic services, which hitherto has been driven by the need to offshore knowledge-based processes to take advantage of labor arbitrage and availability of specialist professional skills in countries like India. We see that the area called Knowledge Process Outsourcing (KPO) is slowly giving way to Analytics Outsourcing (AO).

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Over the last decade, the offshore analytics space has evolved from being dominated by captives of large companies to embracing large vendors offering end-to-end specialized analytics solutions to specific verticals. Service providers such as PharmaARC and Fractal Analytics are some of the early entrants and they have established themselves as end-to-end analytics consulting companies.
Last five years have witnessed a significant increase in the percentage of service providers offering analytics services from offshore

Data security concerns make certain companies hesitant about analytics outsourcing. Vendors are targeting such buyers by offering onsite delivery teams – at client premises, client country- so data is not required to reach offshore.

Analytics service providers includes: BPOs, KPOs, BPO/KPO arm or department of large IT-BPO Company, specialist market research (MR) firms, and other boutique Research and Analytics (R&A) firms.

Data security concerns make certain companies hesitant about analytics outsourcing. Vendors
The approach adopted by large IT companies, BPOs and KPOs differs significantly. WNS and Cognizant are expanding by employing the acquisition route. Others such as Wipro have built in-house capabilities. For KPOs, analytics was an obvious lucrative step up to expand their portfolios.

Client Profile

US, UK and to some degree, the rest of Europe are major markets served by analytics service provider. Since these mature markets embrace experience in offshoring business processes they are now moving up the value chain and are willing to outsource knowledge services. Some providers are also focusing on Australia and Japan.

Fortune 500 companies are the big-league clients for this knowledge service.
Carnation Auto and GE Money are some of Genpact's clients. Pankaj Kulshreshtha, senior vice president, Genpact's analytics and research department articulated, “Genpact has a large concentration in America and a large portion of their current revenue comes from this region. It has footprints in Europe, China, India and Australia. In the coming years, it is expecting to grow significantly in Europe and Asia-Pacific Region.”

Most of WNS clients are based in the United States and European Union region. It is also expanding its client base in the Asia-Pacific region. Most of their clients are spread across several industry verticals, including financial services and insurance, retail, CPG, healthcare, professional services, travel and leisure.

Some of Accenture's clients are BP and Verizon. Capgemini's clients include Mazda and Baycorp. Connectiva serves service providers in telecom, media and entertainment. Their customers include some of the world's largest providers with 200+M subscribers as well as greenfield operators and mid-sized companies. Their customers include Bharti, T-Mobile, Telefonica, Alcatel Lucent, YTL, IDEA amongst others.

 GS100: 2011 Global Services Compendium
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