Data Analytics Outsourcing Market Size, Trends and Growth Analysis by 2027

The global market for data analytics outsourcing was valued at approximately US$ 2.49 billion in 2018 and is projected to experience a compound annual growth rate (CAGR) of 25.8% from 2019 to 2027, ultimately reaching around US$ 19.36 billion by 2027. This growth is primarily driven by a shortage of skilled professionals and the increasing adoption of analytics across various industries.

Despite the rising demand for outsourced analytics services, the market has not been fully penetrated by companies offering comprehensive solutions that encompass data collection, entry, cleansing, and analytics. However, the growing competitive pricing landscape is likely to encourage the unbundling of these services. Additionally, the surge in data generation capabilities, coupled with rapid innovation, is expected to further fuel the demand for data analytics outsourcing.

India and China stand out as the leading providers of data analytics outsourcing services worldwide. Their advantage stems from a relatively inexpensive labor force and the swift economic growth these nations are experiencing, positioning them as key players in the data analytics service market. Conversely, North America and Europe play significant roles in the global data analytics landscape. In the near future, the markets in Asia and the Middle East are anticipated to become increasingly competitive, driven by the expansion of small and medium-sized enterprises.

In 2018, North America emerged as the dominant region in the global data analytics outsourcing market, followed by Europe and the Asia-Pacific region. The Middle East and Africa, along with South America, ranked fourth and fifth in terms of market share within the data analytics outsourcing sector. North America is recognized as one of the fastest-growing regions in terms of technological advancements. Over the past five years, the region has seen substantial adoption of technologies such as Big Data, the Internet of Things (IoT), artificial intelligence, cognitive learning, machine learning, and other data-driven solutions across various sectors. These technologies are inherently data-intensive, generating vast amounts of data daily, which is utilized, stored, and processed as needed.

The overall size of the data analytics outsourcing market has been determined through a combination of primary and secondary research methods. The research process begins with extensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative insights related to the data analytics outsourcing market. This research also includes an overview and forecast of the global data analytics outsourcing market, segmented by five major regions: North America, Europe, Asia-Pacific, the Middle East & Africa, and South America. Furthermore, primary interviews were conducted with industry participants and experts to validate the data and analysis. Participants typically include industry professionals such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the data analytics outsourcing sector. Major companies operating in the global data analytics outsourcing market include Accenture, Capgemini SE, Fractal Analytics Inc., Genpact, Infosys Limited, Mu Sigma Inc., Tata Consultancy Services Limited, Wipro Limited, WNS (Holdings) Ltd., and ZS Associates, Inc., among others.