Data Analytics Outsourcing Market Size

Data Analytics Outsourcing Market Analysis

The Data Analytics Outsourcing Market size is estimated at USD 8.11 billion in 2024, and is expected to reach USD 60.02 billion by 2029, growing at a CAGR of 34.33% during the forecast period (2024-2029).

Artificial Intelligence (AI)/Machine Learning technology has replaced humans in many aspects of data analytics, thus, requiring less input from human manual work. Therefore, the nature of data analytics outsourcing skews toward how humans can effectively create and train a machine learning model rather than how businesses could manage an offshore team.

• According to IBM, the last two years have created over 90% of the world's data. And while there is a talent gap, analytics solutions are expanding because they are being accepted by a variety of sectors, including BFSI and retail, to mention a few. For instance, it has been noted that FMCG firms struggle with inconsistent sales performance due to a lack of diagnostic analytics, the ability to pinpoint what terrible bad performance is, or the capacity to produce precise sales forecasts. 
• The manufacturer needed money and time to expand internal data analytics to gain quick insight, they turned to analytics outsourcing before the COVID-19 outbreak, and many organizations were outsourcing their data operations; the crisis accelerated this practice even further-additionally, businesses investing a significant portion of their IT budgets in cybersecurity initiatives. DataScience blog reports that a recent survey revealed that 37% of corporate leaders claimed they were already preparing to reduce the budgets for their IT departments. The same study discovered that 28% of companies want to relocate some of their data analytics programs overseas.
• Large-scale data production has prompted businesses to look for insights, including consumer segmentation, understanding of preferences within each category, staying up to speed with changes in behavior, and customization. Due to increased internet usage, organizations have access to a vast amount of structured and unstructured data. Due to these advantages, multinational corporations now have their big data evaluated for practical knowledge.
• Adoption also included cloud migration because these capabilities complement the ability to gather Big Data and are intrinsic to cloud features like scalability, agility, cost-effective storage options, and access to massive processing power. In addition, cloud computing technology is now widely used, and the cloud's seamless connectivity makes it available and encourages the development of Big Data Byce to the annual State of the Cloud Report from Right Scale, 78% of firms use hybrid cloud, compared to 19% who use public cloud. Consequently, the development of cloud technology is accelerating the development of the industry under investigation.