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BI and Analytics Market to Touch $143.3bn in 2016?

By SiliconIndia   |   Thursday, 17 January 2013, 10:26 Hrs
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Bangalore: Research by Pringle & Company, a technology market research firm, suggests that the market for services provided by business and technology consultancies to develop and implement the systems required to generate data insights is growing at a rate in excess of 15%.  The global market for these services will nearly double over the next four years, growing from an estimated $54.5 billion in 2012 to $96.9 billion in 2016.  

The overall market, combining software and services – referred to as business intelligence and analytics by the technology industry – is estimated to be $79bn in 2012 growing at 16% to reach $143.3bn in 2016.

The report underscores the indispensable role of services - from management consultancies to technical, deployment and maintenance providers - in developing an organisation’s capability to harness the value of data. Its conclusions support the general rule that for every dollar spent on software for business intelligence more than two are spent on external service providers.

The report’s author, Tom Pringle, commenting on the findings, said, “In a challenging economic environment growth rates above 15% are exceptional. Such high levels reflect not only growing understanding of the real-world business value of data-driven insights, but also the substantial range and depth of skills required to successfully adopt the necessary systems to discover and act on them. As the volume and variety of data continues to grow ever bigger, the necessary investment to successfully understand and exploit its value also rises.”

“Companies are seeking to compete on an ability to produce rich sets of actionable information about their operations, customers, suppliers and competitors. It is a means to improve operational efficiency and effectively meet the needs of the market. Business and technology consultancies are an indispensable part of this boardroom priority.”

“Those service providers not seeing growth rates of this magnitude in their business intelligence and analytics capabilities are both missing a significant opportunity and are likely to be in decline relative to the market.”

Skills gap
High and growing demand for the insights from ‘big data’ presents a significant challenge for organisations in sourcing the range and depth of skills necessary to successfully adopt the technology, apply analytical technique and effectively embed the resulting insight into the business’ everyday decision making.

Tom Pringle comments, “There is high demand for a broad spectrum of services from consultancies as few businesses possess all the skills to develop a successful data analytics capability. This extends beyond the technology knowhow, to statistical and analytical capabilities, industry experience and operational insight. For many businesses there is an obvious skills gap and consultants are stepping forward to fill it. As well as offering a means to accelerate adoption, it can also be argued that ‘borrowing’ these capabilities is more cost-effective in the short term that attempting to build or buy them.”

“When working with consultants businesses should look to incorporate knowledge transfer to make the solution sustainable in the longer term.” Pringle said.

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