Analytics market in India, which clocked revenues of about USD 1 billion in the last fiscal, is expected to more than double it to USD 2.3 billion by the end of 2017-18 fiscal, a joint study by IT-BPO industry body Nasscom and market intelligence firm Blueocean said today.
The report, "Institutionalisation of Analytics in India: Big Opportunity, Big Outcome", said that analytics industry in the country faces a challenge in finding resources like domain knowledge and business and programme management skills, a statement said.
"The Indian market is still in early stages of adoption of analytics and there is a need to industrialise its to derive long term value," Nasscom President R Chandrashekhar said at the 2nd edition of the NASSCOM Big Data and Analytics Summit 2014 in the city.
Going forward, industry stakeholders will need to work on a 6 point agenda which involves raising awareness, creating talent, making variable cost of offerings, standardising tools and technologies, setting up cross functional analytics teams and getting C-level buy in, to drive industrialisation of analytics in India, he added.
The report attributed strong vendor ecosystem, strong analytics capabilities, scalability and leadership as the reasons behind India's advantage as a mature ecosystem to promote domestic adoption of analytics.
Blueocean Market Intelligence President Ashwin Mittal said growing economy, increasing penetration of internet and mobile have formed the basis of analytics growth in India.
"While the BFSI, eCommerce, telecom are the trendsetters in analytics adoption, sectors such as retail, manufacturing, media and advertising are also moving towards adopting it.
Healthcare and Education sectors are yet to make a mark in deploying analytics, he added.
According to the report, to tap the domestic analytics market opportunity, industry should increase awareness about analytics, address cost concerns, bring in standardisation and leverage processes tools and technology.
Analytics, if used as a cross functional unit can provide enormous business benefits to organisations adopting it, the report suggested.
The global analytics market is expected to grow at 12 per cent CAGR from USD 96 billion in 2014 to USD 121 billion in 2016, while analytics services outsourcing is projected to grow at a CAGR of 14.3 per cent from USD 42 billion in 2012 to USD 71 billion in 2016, the report said.
The analytics software market is expected to grow at a CAGR of 10 per cent from USD 35 billion in 2012 to USD 51 billion in 2016, it added.