Global spending on business analytics services is expected to grow at a compound annual growth rate (CAGR) of 14.3% to reach $70.8bn by 2016, according to a report by International Data Corporation (IDC).
The increase in the third-party outsourcing of business analytics services is expected to be driven by the lack of internal analytics resources, like mathematicians, business analysts, data modelers, statisticians, and data scientists, the report revealed.
Another reason for the rise in spending is the faster growth of new technologies including automation around analytics and their link to social and mobile, that could make difficult for end users to build and deploy teams in view of investment required to build infrastructure and talent.
IDC worldwide BPO and Engineering Services research director Mukesh Dialani said that IT services providers are leveraging their business analytics applications and experience to assist their customers with their efforts to find key insights into their business performance. "These include industry-specific and functional resources, infrastructure, and knowledge of best business practice industry performance metrics," Dialani added.
IDC IT consulting and Systems Integration Services senior research analyst Ali Zaidi said: "Talent gap and lack of knowledge base in the analytics space will continue to force businesses to rely on service providers to fulfil their business analytics needs in the near future."
