Market Report: November 2013 – Preview Deck
Topic: Analytics Business Process Services (BPS) –
Deciphering the Analytics Code
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Table of contents
(page 1 of 2)
Background and methodology 5
Executive summary 7
Summary of key messages 8
Implications for key stakeholders 11
Section I: Understanding analytics 12
Summary 13
Definition and building blocks 14
Levels of analytics 15
Analytics process chain 16
Analytics solution components 17
Section II: Market overview 19
Summary 20
Market size and growth 21
Adoption trends by buyer geography and industry 22
Value proposition, drivers, and challenges 24
Section III: Solution characteristics 27
Summary 28
Solution types and objectives 29
Table of contents
(page 2 of 2)
Section III: Solution characteristics (continued)
Scope 31
Technology architecture and model 32
Global sourcing 34
Pricing 35
Section IV: Service provider landscape 36
Summary 37
Analytics BPS service provider landscape and focus areas 38
Service provider solution offerings 39
Factors affecting choice of analytics provider 45
Investments themes in analytics 46
Appendix 47
Analytics solutions in the market 48
Service provider investments in analytics 50
Glossary of terms 56
References 57
Background and methodology of the research
Background of the research
Analytics has moved from hype to reality sooner than expected. Increasingly affordable data storage systems, and ever increasing use of Internet, mobile, and social media are driving synthesis and assimilation of colossal amounts of data. This is, in turn, pushing organizations to explore means to process this structured and
unstructured data effectively and obtain meaningful insights that can enable better-quality decision making. Consequently, companies are leveraging analytics to assess the business environment accurately, understand customer needs, streamline and automate processes, identify underlying patterns, and predict future trends.
In this research, we analyze the current trends, key applications, and broad service provider landscape for Analytics Business Process Services (BPS). We focus on:
Understanding analytics: Key elements, processes, functions, and deployment areas
Market size, value proposition, key drivers, and challenges
Analytics solution characteristics
Major service provider categories and capabilities
The scope and methodology of this report includes:
Analytics BPS offered by either BPO providers or analytics-focused specialists. It excludes pure IT services implementation of an analytics solution
This report aims to increase the understanding of the analytics BPS market. The report covers market size and growth, value proposition, key applications, contract characteristics and service provider landscape for
Analytics BPS. The report also highlights implications of analytics trends for buyers and service providers and factors affecting the choice of analytics provider.
Understanding analytics
Market overview
Overview and abbreviated summary of key messages
(page 1 of 2)
Analytics BPS market is around US$1.5 to 2 billion in size and growing at a rate of over 30%
The United States leads analytics BPS adoption with over 70% market share. Consumer Packaged Goods (CPG) & retail and Banking Financial Services & Insurance (BFSI) are the most mature adopters of analytics BPS
Some of the findings in this report, among others, are:
Analytics solutions have an IT aspect and a BPS aspect. This study focuses on the BPS aspect of the analytics solution
There are four different levels of analytics based on solution sophistication and business impact. These are reporting, descriptive analytics, predictive analytics, and prescriptive analytics
Solution
characteristics
Service provider landscape
Analytics BPS solutions can be either industry-agnostic horizontal solutions or vertical-specific, with the latter having greater adoption than the former
Current adoption is primarily focused around reporting and descriptive analytics
The technology architecture of an analytics solution is complex and comprises data storage and integration systems, core statistical/analytical tools, and user interface & visualization tools
India is the most mature location from delivery perspective
The analytics BPS provider landscape is evolving rapidly. It can be divided into BPO providers and analytics-focused specialists
Various service providers are investing in analytics along four major dimensions – developing Big Data-handling capabilities, developing sophisticated prediction and prescription capabilities, growing industry-specific scale and expertise, and focusing on risk management solutions-based work
Overview and abbreviated summary of key messages
This study offers four distinct chapters providing a deep dive
into key aspects of the FAO market; below are four charts to
illustrate the depth of the report
Understanding analytics Market overview
Solution characteristics Service provider landscape
Source: Everest Group (2013)
Analytics value chain
Define business objective
1. Collect and clean data 2. Analyze and interpret 3. Report and visualize 4. Adjust and enhance 5. Implement and operationalize 2010 2012 2015E
Global analytics BPS industry size and growth
Annual revenue (US$ billion)
Analytics solutions landscape
Horizontal solutions
Finance and accounting Procurement
HR
Supply chain management CPG & retail BFSI Health- care Pharma-ceuticals Media & techno-logy Vertical solutions Service provider 10 Service provider 6 Service provider 5 Under 1,000 FTEs 1,000-2,000 FTEs Over 2,000 FTEs In cr easi n g an al yt ics B P S scal e
Increasing level of solution sophistication
(Percentage FTEs engaged in predictive and prescriptive analytics) Less than 40% Greater than 40%
Service provider 1
Service provider 3
Service provider 8 Service provider 2
Service provider 7
Service provider 4 Service provider 14 Service provider 9 Service provider 13 Service provider 16 Service provider 17 Service provider 11 Service provider 12 Service provider 15 Low sophistication High sophistication
Analytics BPS scale by level of solution sophistication Analytics process chain
Additional analytics-focused research references
The following documents are recommended for additional insight on the topic covered in this report. The
recommended documents either provide additional details on the topic or complementary content that may be of interest
1. Analytics in Banking – War is Ninety Percent Information (EGR-2013-11-R-0888). This report provides a comprehensive understanding of the analytics services industry with focus on banking domain. Analytics adoption in the banking industry is covered in depth, exploring various aspects such as market size, key drivers, recent analytics initiatives, and challenges. The report also analyses the trends in analytics deals for various banking subverticals (cards, retail, commercial, and lending) and evaluates analytics capabilities of 20+ service providers in the banking space.
2. Creating Value through Analytics in HR (EGR-2013-3-R-0930). This report examines the role of analytics in HR and identifies the ways to capture its value within an outsourcing construct.
For more information on this and other research published by Everest Group, please contact us:
Rajesh Ranjan, Vice President: Abhishek Menon, Practice Director: Vishnu Khandelwal, Senior Analyst: BPO Team:
Phone: +1-214-451-3110 Email: [email protected] Everest Group
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