In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Surge in data analytics outsourcing market in the region is propagated significantly on the back of prodigious service sector. The evolution of the economy after the subprime crisis tends to bolster the growth of industries manifests data analytics outsourcing application across the globe. Dell Inc., Amazon.com Inc., SAS Institute Inc., Genpact, IBM Corporation are some of the leading players in the global data analytics outsourcing market.
Descriptive analytics segment is the most frequent analytics type used for Data Analytics Outsourcing industry.
Data analytics outsourcing refers to subcontracting of statistical research and data, in addition to applied computational resources, for proficient decision-making. Data analytics assists the organization in achieving valuable information from huge sets of data. Huge amount of data collection in various organizations across different segments has enhanced the requirement for making effective business decisions based on the market insights and analytics. Several organizations are progressively distinguishing between the productivity and benefits of applying data analytics.
Data analytics outsourcing is expected to witness significant growth in the forthcoming years owing to the increasing emergence of social analytics and rapidly rising data volume. Additionally, rising application of social media leading to generation of huge amount of data and reduction in data storage prices are further anticipated to spur the market growth over the forecast period.
Growth following the subprime crisis is expected to provide sustainable elevation in the demand of data analytics services in the U.S. which is further expected to boost the growth in data analytics outsourcing market over the forecast period. Vast geographic location of the various countries sublimates data analytics outsourcing used in supply chain management for cost optimization. Supply chain management used in various secondary & tertiary industries and exports in the country are promoting the data analytics outsourcing market.
The market size of global Data Analytics Outsourcing was valued at USD 2,010 million in 2017 by growing at a CAGR of 22.76% over the forecast period i.e. 2017-2027.
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The global Data Analytics Outsourcing market is segmented region wise into 5 major regions comprising of North America, Europe, Asia Pacific, Latin America and Middle East & Africa. Among these regions, North America is estimated to contribute majorly to the market growth. Rapid transformation in the retail landscape has been backing a rise in the demand for efficient supply chain analytics services across countries such as the US and UK.
In depth analysis of data pertaining to efficient sourcing, warehousing, transportation and the out of stock detection has been boosting the growth in the prevalence of big data in supply chain landscape. Consequently, this has been aiding the development of trend of data analytics outsourcing services pertaining to the supply chain services.
The U.S. market is projected to garner an estimated revenue of USD 2656.73 million by end of the forecast period. Asia Pacific is expected to witness substantial market growth by growing at a CAGR of 29.89% over the forecast period. Higher penetration of technology in Australia transmutes the development of marketing data analytics outsourcing applicable to various product and service positioning in the market.
The study further incorporates Y-O-Y Growth, demand & supply and forecast future opportunity in North America (United States, Canada), Latin America (Brazil, Mexico, Argentina, Rest of LATAM), Europe (U.K., Germany, France, Italy, Spain, Hungary, BENELUX [Belgium, Netherlands, Luxembourg], NORDIC [Norway, Denmark, Sweden, Finland], Poland, Russia, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Malaysia, Indonesia, Taiwan, Hong Kong, Australia, New Zealand, Rest of Asia-Pacific), Middle East and Africa (Israel, GCC [Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman], North Africa, South Africa, Rest of Middle East and Africa).
The global Data Analytics Outsourcing market is bifurcated by analytics type into Descriptive Analytics, Predictive analytics, and Prescriptive Analytics. Among these segments, the descriptive segment is projected to lead and is expected to occupy a global market share of 53.2% by 2027, while growing at a CAGR of 18.47% during the forecast period.
Predictive analytics is mainly used by individual entities for targeted product penetration. Inclination on the emphasis of market as well as competitive intelligence transmutes to the growth of predictive analytics market in United States.
Various prodigious companies in the country are using predictive analytics to predict futuristic demand for optimization of revenue. On the other hand, increasing implementation of prescriptive analytics by several large companies for managing inventory in the supply chain and for optimizing production is further projected to boost the market growth over the forecast period.
The global Data Analytics Outsourcing market is segmented Marketing, Sales, Fraud Detection and Risk Management, Supply Chain, Process Optimization, Advisory Services, Device Security Solution, Others, out of which the marketing analytics segment held the largest market size in 2018 and is estimated to grow significantly throughout the forecast period.
The global Data Analytics Outsourcing market on the basis of verticals is segmented into BFSI, E-commerce, Healthcare, Telecom, IT Services, Process Outsourcing, Outsourcing, Others. Among these segments, the BFSI segment is estimated to hold highest market shares in 2027. However, process outsourcing vertical is projected to exhibit highest growth in the coming years.
Exponential growth in the generation of data by many different organizations is increasing the pool of data gathered across various industry verticals. Consequently, this extensively helps organizations to help them analyse to gain consumer and market insights to make an effective strategic business decision based on the analytics services for various business segments such as Healthcare, BFSI and process outsourcing.
Increase in the application of data analytics in various industries to minimize the efforts and catalyse the process for augmented outcomes tends to penetrate the market over the forecast period. In addition, the application of data analytics combines with the digital advertisements provides the companies to target the collative potential market. The companies are utilizing the attributes of it to harness the optimization in sales and profitability by targeting and retargeting.