Analytics Services Industry in India Overview Sakshi Prakash: Social Media Analytics, Hewlett-Packard

Jan, 2013

2

Agenda

Analytics in Business - What, Why & Where

Increase in Importance of Analytics

Spreading Wings: Growth of Analytics Services

Service Providers Landscape

Analytics Services Mix & Skill Set Required

3

Firms typically apply analytics to business data, to describe, predict & improve performance

Analytics in Business

Analytics

Discovery & communication of meaningful

patterns in data

Simultaneous application

of statistics, programming, OR &

business acumen

Favors data visualization to communicate

insight

Improve

Predict

Describe

Why Where

Retail Analytics

Store Assortment

Price & Promotion

Marketing Optimization

Web Analytics

Portfolio Analysis

Risk Analytics

Supply Chain Optimization

What

Source

4

• Big Data • Unstructured

Data

Information Explosion

• Real Time Analytics

Faster Decisions • Advanced

Analytics • Text Analytics

Smarter Decisions

Flexible Technology & Systems

Increase in Importance of Analytics

Information Explosion

Smarter Decisions

Faster Decisions

Contributing Factors

Go!

Source

5

With India supplying business analytics capabilities to MNCs at best performance to cost ratio, scope for a professional in this field is phenomenal

Spreading Wings

The popularity and maturity over time of the BPO sector led to the evolution of yet another form of global outsourcing known as KPO

The Indian KPO services industry is estimated to be around USD 5.7 billion currently and grew by 15-17% in the recent past

- Analytics outsourcing is a segment of the growing KPO industry

Global data analytics outsourcing market stood at $500-550 million in 2010, of which Indian service providers delivered $375 million

- Faces stiff competition from Philippines, Russia, China, Poland and Hungary

By 2015, the data analytics market in the country is expected to reach $1.15 billion, to constitute 21 per cent of the overall Indian knowledge process outsourcing (KPO) market opportunities of $5.6 billion

Estimated offshore knowledge services in India by 2015

• $5.6 billion Total market opportunities

• 39% Business research as

percentage of market

• 23% Legal process outsourcing as percentage of market

• 21% Data analytics services as

percentage of market

• 17% Others (Social media research, marketing & sales support

Source1 Source2 Source3

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Landscape is split between pure-play analytics vendors, KPO/BPO services providers & global companies who source analytics services from their captive centers in India

Service Providers Landscape in India

Service Providers

Landscape

Pure Play Vendors

BPO/KPO Services

Providers

Captive Centers

•Mu Sigma

•AbsolutData

•Fractal Analytics

•ZS Associates

• IBM

• HP

• ICICI

• HDFC

• Wal-Mart Labs

• Vodafone

•TCS

•Genpact

•Wipro

•Accenture

•eClerx

Acquisitions by Indian companies in analytics space

Source

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Service Providers Landscape in India (cont.)

Top Cities by Analytics Startups

Bangalore 31%

NCR 26%

Mumbai 18%

Pune 8%

Hyderabad 8%

Chennai 6%

Kolkata 3%

Top 10 Analytics Employers in India

Global Top 10 Employers in Analytics

Genpact IBM

TCS Accenture

IBM Microsoft

CTS Google

HP Oracle

Accenture Bank of America

Infosys HP

HSBC Citi

Wipro SAP

Dell Wells Fargo

Top Cities by Analytics Professionals

NCR 29%

Bangalore 26%

Mumbai 21%

Hyderabad 7%

Chennai 7%

Pune 7%

Kolkata 4%

•Third party vendors form the bulk of employment in analytics from Indian context

•Contrast it with global top 10 employers. Five out of these ten, consume analytics in-house. Although all these firms have offshore units in India, they still shy away from offshoring high end vocations like analytics to India

Source

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Insight Generation/Recommending actionable insights is a critical element where management students can add value

Analytics Services Mix & Skill Set Required

Model/Solution Building

Running Models, Data Analysis

Data Extraction

Data Preparation

Business Research

Reporting

Insight Generation

Visualization/Report Writing

Communication/Presentation

Low-end

High-end

Right Attitude & Eagerness to Learn

Strong Oral & Written Communication

Logical/Analytical Thinking

Business Acumen: Retail, FMCG, IT etc.

Domain Understanding: Marketing, Finance, Supply Chain, HR etc.

Statistics, Operations Research

Technical – VBA, SAS, R, SQL

Skill Set Required

Newsletters

Infographics Dashboards

Open Session!

Questions? Comments?

Thank you

Appendix

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Big data spans three dimensions: Volume, Velocity, Variety

What is Big Data?

Big data is a collection of data sets so large and complex that it becomes difficult to process using on-hand database management tools or traditional data processing applications. The challenges include capture, curation, storage, search, sharing, analysis and visualization •Volume: Enterprises are awash with ever-growing data of all types, easily amassing terabytes, even petabytes of information

•Turn 12 terabytes of Tweets created each day into improved product sentiment analysis •Convert 350 billion annual meter readings to better predict power consumption

•Velocity: Sometimes 2 minutes is too late. For time-sensitive processes such as catching fraud, big data must be used as it streams into your enterprise in order to maximize its value

•Scrutinize 5 million trade events created each day to identify potential fraud •Analyze 500 million daily call detail records in real-time to predict customer churn faster

•Variety: Big data is any type of data - structured and unstructured data such as text, sensor data, audio, video, click streams, log files and more. New insights are found when analyzing these data types together

•Monitor 100’s of live video feeds from surveillance cameras to target points of interest •Exploit the 80% data growth in images, video and documents to improve customer satisfaction

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80% of all potentially usable business information originates in unstructured form

What is Unstructured Data?

Unstructured Data refers to information that either does not have a pre-defined data model and/or does not fit well into relational tables •Unstructured data is typically text-heavy, but may contain data such as dates, numbers, and facts as well

• This results in irregularities and ambiguities that make it difficult to understand using traditional computer programs as compared to data stored in fielded form in databases •In 1998, Merrill Lynch cited estimates that as much as 80% of all potentially usable business information originates in unstructured form

• More recently, multiple analysts have estimated that data will grow 800% over the next five years

•Unstructured information accounts for more than 70%–80% of all data in organizations and is growing 10–50x more than structured data

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