Analytics outsourcing deals with the use of statistics, computing resources, and operational research to unravel industry and business problems. Analytics outsourcing is fast becoming the most acceptable after outsourcing vertical.
This is due to the fact that organizations all over the world have come to understand that it is not their access to data that really matters, but the analytics – which is the interpretation and application of the data concerned.
Managements are now deciding to base most of their important decisions like operational policies and strategic plans on fraud analytics, credit risk analysis, marketing analytics, qualified data analytics, strategy, and predictive science so that they can stay above a highly competitive market environment.
The Key Players in the Outsourcing Analytics Market
- Risk Management: Entails making use of analytics for high-risk businesses. For instance, insurance organizations make use of credit risk analysis to forecast an expected claim amount based on past data.
- Marketing and Customer: Credit card, Internet, and Telecom companies normally generate an enormous quantity of customer data. Marketing analytics involves primary research, data mining, data synthesis, statistical modeling, secondary research, and surveys to understand and forecast consumer behavior
- Investment and Finance: Equity research and analysis, risk assessment, financial reporting, due diligence, company valuation, and industry research are diverse verticals that are of demand in the investment and finance analytics sector.
- Data and Operations: Data and operations analytics makes use of collections efficiency, customer satisfaction analysis, performance and productivity, demand management and demand forecasting, as well as IVR analytics and many more to discover and redesign the IVR tactic, depending on user preferences and user segments.
Major Drivers in Outsourcing Analytics
The major players and key drivers in the supply side of outsourcing analytics are contextual domain expertise, high availability of skilled labor, and the rising awareness of the growing quality of education systems in preferred offshore locations.
On the demand side, relatively lower costs, reduced time to market ratio, and enhanced efficiency, are identified as the main catalysts for the rush in outsourcing analytics services like credit risk analysis, data analytics, and marketing analytics.
Future Development of the Outsourcing Analytics Market
Analytics outsourcing which began with marketing analytics and data analytics has developed to incorporate many areas. The emerging trends in the outsourcing analytics market include customer analytics for the utilities and energy sector, cloud-based business analytics, fraud analytics in the area of retail banking, and analytics from social network data mining.
On the other hand, learning analytics and cyber analytics are the two vital areas that will take over the offshore analytics market.
As far as the future of the outsourcing analytics market in the Philippines is concerned, the next decade and the future will be quite different from what was obtainable in the past, with structural moves in demographics that will mirror more significantly in the economics and international trade, where outsourcing will no more be a matter of choice.
Daven Michaels is a New York Times Best Selling Author and CEO of premiere global outsourcing company, 123Employee. The company employs hundreds of young bright individuals on three continents. His International event, Beyond Marketing Live! Inspires entrepreneurs to build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams.