BUSINESS AN ALYTICS IN INDI A:

A Competiti ve Landscape & Opportunity Anal ysis Report

Radha Roy Biswas

For XXXX Pvt. Ltd.

Aug 9, 2012, Version: Final

Kolkata, Indi a

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 Brief:

To assess the India market f or B usiness Anal ytics. Report to i ncl ude a
com peti tive prof ili ng, SW OT anal ysis, k ey technolog y pl atf orms in
use, and assessm ent of m ark et potenti al. A ll anal ysis based on
secondar y pu blicl y avail able data.

Methodolog y
Secondar y, p ublicl y available data and r esources – Com pany reports,
press releas es an d trade ne ws sources a vailable publicl y onli ne.
Supplem ent ed with short di scussions with some m anagem ent IT
industr y prof essional s dealing directl y or indirectl y wi th b usiness
anal ytics.

A s s um p t i o n s :

1. I n s om e c a s e s , f o r i n f o s u c h a s g r o wt h p r o j e c t i on s b y i n d u st r y
( v e r t i c a l s) , g r o wt h ra t e s f o r I T E n a b l e d S e r v i c e s ( I T eS ) / B P O
K P O h a v e b e e n u s ed , a s a p r o x y, wi t h t h e a s s um p t i o n t h a t
b e c a u s e t h e B A s e r v i c e s i n d us t r y i n I n d i a , i s p e r c e i v e d t o be
l a r g el y l o c a t e d wi t h i n t h e I T / B P O i n d u st r y, i n di s c u s s i o n s o f
s c o p e a n d t r e n d s a n d v e r t i c a l g r o wt h a r e a s , et c . , t h e u s e o f
t h e s e pr o x y f i g u r e s wi l l b e j us t i f i e d .
2. W h er e g r o wt h f i g ur e s f o r I n d i a a r e n o t av a i l a bl e , a n d o n l y
g l o b a l d a t a a r e a v ai l a b l e , t h e s e d a t a h a v e b e e n u s ed af t e r
f a c t or i n g i n I n d i a n t r e n d s i n p e n et r a t i o n a n d u s a g e of B A .

Contents:
1. Business Anal ytics: A work ing def inition
II. Business Anal ytics Mark et:
1. BA Pl atf orms / Products

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 2. BA Servi ces
3. Uses and Deploym ent of Anal ytics
4. BA in SMBs
I I I . T h e I n d i a M a r k et : D r i v e r s a n d T r e n ds
I V . G r o wt h P r o j e c t i o n s
V . A n al ys i s
.
I. Business Analytics: A working definition

T h e t er m “ b u si n e s s a n a l yt i c s ” r e f er s t o t e c h n o l o g y t h a t u s e s d a t a
a n a l ys i s t o u n d e r st a n d b u s i n e s s i s s u e s i n a wa y t h a t c a n g ui d e
decision-making.

T h e b a s i c p u s h f or B A c om e s f r om t h e f a c t t h a t af t e r o v e r t wo
d e c a d e s of u n pr e c e d e n t e d i n v e s t m e nt s i n M I S , i n d a t a c a p t u r i n g a n d
s t o r a g e a n d c om p ut i n g p o we r , e n t e r p r i s e s o f t wa r e a c r o ss co m p a n i es
h a v e g e n e r at e d , a nd c o n t i n u e t o g e n e r a t e , m o u n t a i n s o f da t a - -
a b o u t s al e s, m a rk et s , p e o p l e a n d p er f or m a n c e , t h e s u p pl y c h a i n ,
o p e r a t i n g e x p e ns e s a n d s o o n 1. F i r m s a r o u n d t h e g l o b e a r e n o w
s e e k i n g wa ys t o h a r v e s t t h e d a t a t h e y h a v e a c c u m u l at e d , an d
c o n t i n u e t o g a t h e r, a n d g e n e r a t e R O I s o n t h ei r i n v e s t m e n t s t o d r i v e
c o m p e t i t i v e a d v a n t ag e s i n t h e i r f i e l d s .

I n t u r n, I T v e n d or s h a v e b e e n o f f er i n g s of t wa r e a n d s e r vi c e s t h a t
p r o m i s e t o c l e a n u p a l l t h a t i n f or m at i o n, p r o c e ss i t , a n d d el i v e r
a c t i o n a bl e i n f o r m a t i o n t h at c o m p a n i e s ca n u s e t o b o os t g r owt h a n d
p r o f i t a b i l i t y l e a d i n g t o t h e g r o wt h o f b u si n e s s a n a l yt i c s 2.

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Source: Information technology vendors bet big on business analytics.
www.livemint.com/2011/05/.../Information-technology-vendors.html Posted: Thu, May 19 2011
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Ibid.

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T h e r e i s n o a c c e p t ed i n d u s t r y d e f i ni t i o n of b u s i n es s a n a l yt i c s . T h e
t e r m i s c u rr e n t l y u s e d t o e n c o m p a s s e ve r yt h i n g f r o m s p r e ad s h e e t s ,
t o “ d a s h b o a r d s ” a n d p e r f o r m a n c e m a n ag em e n t – b a si c b u si n e s s
i n t e l l i g e n c e, t o pr e di c t i v e m o d e l i n g t o s i m u l a t i o n s a n d o u t c om e
o p t i m i za t i o n , h e n c e , t h e r e t e n d s t o b e co n s i d e r a bl e v a r i a t i on i n
e s t i m at e s of t h e s c o p e of t h e m ar k e t a n d p r o j e c t i o n s f o r i t s g r o wt h .

However, the industry has come to distinguish its offerings as basic

a n a l yt i c s a n d a d v a n c e d a n a l yt i c s . S o m e i n d u s t r y o p e r a t o r s a n d o b s e r v e r s
p r e f e r t o d i s t i n g u i s h b e t w e e n B u s i n e s s I nt e l l i g e n c e a n d B u s i n e s s
Analytics with analytics representing the more sophisticated offerings
such as predictions, modeling and optimization, frequently the terms are
used interchangeably. Others locate BA within the larger area of BI. In
t h i s r e p o r t t h e t e r m BA i s u s e d t o r e p r e s e n t b o t h BI a n d B A , a s m a n y
vendors and service providers operating in this space appear to use them
interchangeably and provide both.

Fig 1. BA tools and applications map

Advanced
Analytics Optimization

Predictive Modeling

Simulations and Scenario Dev.

Web/ Social, Other Unstructured data

Mining Analytics

Forecasting

Consolidated performance
management

Performance reporting –
KPs/ Dashboards

Ad-Hoc Query & Analysis

Basic General Statistics

Analytics
Spreadsheets

Single Multi-
domain domain

Single Multi -vertical

vertical
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I I . Th e B u s i n e s s A n a l yt i c s M a r k et

T h e B us i n e ss A n a l yt i c s s p a c e c a n b e di v i d e d i nt o t wo b r o a d a r e a s :

1 . B A P l a t f o r m s / Li c e n s e d P r o d u c t s

2. BA S e r v i c es wh i c h include a s se s s m e nt s , d e si g n, a n a l ys i s ,
d e v e l o pm e n t o f c u s t o m i ze d t o o l s a n d a p p l i c a t i o n s f o r en d u s e r s ,
i m pl e m e n t a t i o n , a n d m a i n t e n a nc e .

T h e S t u d y f o c u s e s o n t h e B A S e r v i c e s M a r k et .

A c c or d i n g t o G a r t n er r es e a r c h, t h e I n di a n m ar k e t f o r B I / B A i s wo r t h
$ 6 5 m i l l i o n ( n e w l i c e n s e r e v e n u e ) , wi t h a gr o wt h r a t e of 1 5. 7 % .
A c c or d i n g t o I B M I nd i a , t h e B A m a r k et i s e s t i m a t e d t o b e ab o u t $ 4 0-
5 0 m i l l i o n f o r B I / DW p l at f or m / p r o d uc t s an d a b o u t $ 1 0 0 - 1 5 0 m i l l i o n
f o r B A s e r v i c e s , wi t h g r o wt h r a t e s h o v er i n g a r o u n d 2 0 %. T h e B I
s e r v i c e s m a r k e t i s t yp i c a l l y a t 1 5 0 - 2 0 0% of t h e p r o d u c t s / l i c e n s e
m a r k e t . O n e n e e d s t o r em em b e r t h a t a l o t of t h e B I t o o l s wh i c h a r e
u s e d i n I n di a a r e o f t e n l i c e n s e d a b r o a d b y t h e p a r e n t c o m p a n y.

II. 1. B A P l at f or m s / Li c e n s e d P r o d u c t s

G l o b al l y, r e s e a r c h f i r m , G a rt n e r e st i m a t e s t h at t h e f o u r l a r g e B A t o ol
a n d p l at f or m v e n d or s - - S A P , O r a c l e , I B M a n d M i c r o s o f t - - co n t i n u e
t o c o n s ol i d a t e t h e B A t o ol s a n d p r o d uc t s m a rk et 3. G a r t n e r f ou n d t h at
S A P h el d t h e l e a d w i t h a 2 3 % s h ar e , f o l l o we d b y O r a c l e ( 1 5 . 6 % ) a n d
t h e S A S I n s t i t u t e ( 13 % ) . I B M , wh i c h h a s m a d e a n al yt i c s t h e f o c u s of
i t s r ec e n t s t r a t e g y, a n d h a s a c qu i r e d a n u m b e r o f c o m p a n i es i n t h e

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http://www.gartner.com/it/page.jsp?id=1642714

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s p a c e l i k e C o g n o s , S P S S a n d o t h er s , ca m e i n f o u r t h wi t h a n 1 1 . 6%
s h a r e . A c c o r di n g t o G a r t n e r ’ s r e p or t , t he B i g 4 c o n t i nu e t o o wn 5 9
p e r c e n t of t h e m a r k e t s h ar e . I n t h e B I p l a t f o r m a n d C o r p o r at e
P e r f o r m a n c e M a n a ge m e n t ( C P M ) s u i t e s e g m e n t s , t h e y h o l d c l os e t o
6 6 % m a r k et s h a r e , wh i l e i n p u r e st a t i s t i c s a n d a n al yt i c a p p l i c a t i o n s,
S A S d om i n a t e s t h e m a r k et . I n a n e a r l i er 2 0 0 8 r a nk i n g f r om I D C , p u t
t h e t o p t e n g l o b al v e n d o r s a c c o u n t e d f o r 6 6% of t h e t o t al r e v e n u e
f r om b u si n e s s a n al yt i c s s of t wa r e , l e a v i ng t h e r e m a i ni n g 3 4% a
c o m p e t i t i v e b a t t l e g r o u n d f or h u n d r e d s of i n d e p e n d e n t s of t wa r e
v e n d o r s wo r l d wi d e ) 4. T h e t o p pl a ye r s a n d t h ei r c om p e t e n ci e s a r e
l i s t e d i n F i g. 2:

Fig. 2 Global Market Leaders in BA Software Tools and Platforms & Their

Compet encies

Oracle Market leader present in all market segments with a broad

portfolio of business intelligence tools, analytic applications

and data warehousing software. Less than a quarter of

revenues from BA software.

SAP Highest momentum of all the BA vendors, helped by

acquisitions and internal product development. SAP also

second-highest in breadth of portfolio of BI tools, analytic

applications and data warehouse generation tools.

IBM Third on the diversity ranking, fourth in momentum, and less

than 25% reliance on BA soft ware. Position boosted by

a c q u i s i t i o n o f C o g n o s , w h i c h a d d e d B I t o o l s a n d a n a l yt i c

applications to the company's already strong presence in the

data warehouse generation and management segments of the

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http://www.informationweek.com/news/software/bi/219401120

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 market.

SAS Broad portfolio spans all business analyt ics market segments

and is exclusively dedicated to this market. Leads in the

a d v a n c e d a n a l yt i c s t o o l s s e g m e n t a n d i s w i t h i n t h e t o p t w o

vendors in two other market segments.

Microsoft F i f t h l a r g e s t m a r k et s h a r e d r i v e n b y i t s p o s i t i o n i n t h e d a t a

w a r e h o u s i n g a n d B I s e g m e n t s of t h e m a r k e t .

Teradata Solid portfolio in data warehouse management, along with

t o o l s f o r d a t a m i n i n g a n d a n a l yt i c a p p l i c a t i o n s f o r s u p p o r t i n g

customer relationship management and supply chain

management processes.

FICO's Driven by a heav y reliance on the financial services industry.

F o r m e r l y F a i r I s a a c , i t l e a d s t h e s e r v i c e s op e r a t i o n s

analytics applications segment , and provides CRM analytics

a p p l i c a t i o n s a n d a d v a n c e d a n a l yt i c s t o o l s .

Informatica: Highest growth rate of the top 10 vendors. Presence in the

m a r k e t d u e t o it s d a t a i n t e g r a t i o n s o f t w a r e u s e d f o r d a t a

warehouse generation.

Infor P o r t f o l i o o f a n a l yt i c a p p l i c a t i o n s l e d b y i t s f i n a n c i a l

p e r f o r m a n c e a n d s t r at e g y m a n a g e m e n t a p p l i c a t i o n s . O f f e r s

i t s o w n q u e r y, r e p o r t i n g , a n d a n a l ys i s t o o l s .

MicroStrategy D e r i v e s a l l i t s r e v e n u e i n t h e m a r k et f r o m t h e q u e r y ,

reporting, and analysis market segment.

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T h e m ar k e t l e a d e r s i n I n d i a a r e r a nk e d s o m e wh a t d i f f e r e n t l y.
A c c or d i n g t o C I O D a t a C e n t er 5: i n 2 0 1 1, t h e t o p B A t o o l v e n d o r s i n
t h e I n d i a n B A pr o d uc t s we r e I B M , M i c r o s o f t , O r a c l e, S A S I n s t i t u t e,
a n d S A P ( F i g . 3 ).

I t i s wo r t h n o t i n g t h a t I B M i s a t o p p l a y e r i n b ot h t h e pr o d uc t s a n d
s e r v i c e s s e gm e nt s . M o s t s e r vi c e p r o v i de r s t e n d t o us e t h e p r o d u c t s
of t h e t o o l v e n d or s i n F i g s 2 & 3 t o d e s i g n a n d of f e r c us t om i z e d
s o l u t i o n s t o t h ei r c us t om er s ( e n d u s e r c l i e n t s ) . I n m a n y c a s e s ,
s e r v i c e p r o v i d er s h a v e t h ei r o wn b r a n d ed s o l ut i o n s ui t e s t h at ar e
b u i l t of f v e n d o r s t o ol s a n d pl a t f o r m s .

F i g 3 . To p I n t e r n a t i o n a l V en d o r s i n t h e I n d i an B A T o o l s M a r k e t

IBM I B M C o g n os S e r i e s 1 0

MAIA Intelligence 1KEY Agile BI Suite

M i cr o s of t M i cr o s of t I n t e g r at e d B I of f e r i n g

O r a cl e O r a cl e B us i n e ss I n t e l l i g e n c e E n t er p r i s e E di t i o n
Plus

SAS Institute S A S B u s i n e s s I nt e l l i g e n c e of f er s S A S B u s i n e s s
A n a l yt i c s F r am e wo r k i n c l u di n g s o l ut i o ns ,
s o f t wa r e , a n d s er v i c e s

SAP S A P B u s i n e s s O bj e c t s , S A P N e tW e a v e r B I

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http://searchcio.techtarget.in/tutorial/BI-tools-guide-for-managers

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T h e o n e pr o m i n e n t I n d i a n B I t o o l v e n d or i s M AI A I n t el l i g e n c e wh i c h
d e v e l o p s i nt e g r a t e d b u s i n e s s i n t e l l i g e nc e r e p or t i n g s of t wa r e a n d
q u e r y a n a l yz e r t o o l s .

I. 2. Busi ness Analyt i cs S ervices

I n d i a’ s B A s e r v i c e s i n d u s t r y i s e n s c o n ce d p r i m a r i l y wi t h i n i t s B P O
a n d K n o wl e d g e P r oc e s s e s O u t s o u r c i n g ( K P O ) i n d u s t r y a n d f r o m
t r a d e r e p or t s a n d ne ws i t i s e v i d e nt t h at i t i s n ot o nl y v i e we d a n d
d i s c u s s e d a s e gm e n t of I n d i a ’ s I T - e s / B P O / K P O i n d u s t r y, b u t t h e
g r o wt h of t h e B A s eg m e n t h a s b ee n d r i ve n l a r g e l y b y, a n d m i r r or s
t h e gr o wt h t r aj e ct o r y o f , t h e B P O / K P O i n d u s t r y b o t h i n t e r m s of
p r o v i d er s a n d u s e r m a r k e t . T h u s, i n c i t i n g f i g u r e s , t h o s e f o r wh i c h
B a s p e c i f i c f i g ur e s a r e u n a v a i l a b l e, we u s e I T -B P O f i g u r e s t o
d e s c r i b e b ot h t h e sc o p e a n d t e n d s i n t h e m ar k e t .

I n d i a g e n e r at e s a l mo s t 7 0% r e v e n u e s o f t h e gl o b a l k n o wl e dg e
s e r v i c e s o u t s o u r c i n g i n d u st r y c om p ri s e d of m a rk e t r e s e a r ch ,
b u s i n e s s r e s e a r c h, d a t a m a n a g em e n t , da t a a n al yt i c s a n d l eg a l
s e r v i c e s , a c c o r d i n g t o t h e N A S S CO M - C R I S I L R e p o r t o n " I n d i a
K n o wl e d g e S e r vi c e s I n d u s t r y. I n 2 0 1 0 , t h i s i n d u st r y wa s e s t i m at e d t o
g e n e r a t e $ 2 . 9 b i l l i o n , w i t h I n d i a g en e ra t i n g r e v en u e s o f $ 2 b i l l i o n
o r 7 0 % o f t h e t o t a l 6. A c c o r d i n g t o an o t h e r N A S S C O M r e p o r t ( I n d i a’ s
D om es t i c I T - B P O M a r k e t W i n d s of C h a ng e 2 0 1 1 ) W i t h i n t h e B P O /
K P O m a r k e t , B I p l at f o r m s , a n al yt i c a p p l i c a t i o n s a n d p e r f o r ma n c e

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India has over 12,000 players has developed in the domestic IT-BPO market.
Over 50 per cent of the total market is dominated by the top 20 operators in the
space. The long tail of the market, which contributes ~5-8 per cent of the total
revenue, consists of over 11,000 players comprised of web development units,
freelancers, value-added resellers, individual app-developers, etc.

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m a n a g em e n t s o f t wa r e r e v e n u e s i n I n di a r e a c h e d $ 4 0 . 5 m i l l i o n i n
2 0 0 8 , a 5 8 . 6% i n c r ea s e f r o m t h e 2 0 0 7 r e v e n u e s of $ 2 5. 6 m i l l i o n 7.

I n i t i al l y, wh e n b u s i n e s s a n a l yt i c s e v o l v ed , c om p a ni e s t r i e d t o
d e v e l o p a n d d e p l o y a n a l yt i c s s ol u t i o n s o n t h e i r o wn . H o we v e r , a s
t h e s c al e a n d sc o p e of a n a l yt i c s ex p a n de d , i t b e c am e di f f i cu l t t o
g e n e r a t e a n d m a i nt a i n t h e s e s e r v i c e s i n - h o u s e . T h i s l e d t o
c o m p a n i e s l o o k i n g f o r t h i r d - p ar t y s o l u t i o n s / s e r v i c e pr o vi d er s .

C om p a ni e s a l r e a d y o u t s o u r c i n g I T s o l u t i o n s s t ar t e d l e v er a gi n g t h e i r
I T a n d B P O o f f s h o r i n g e x p e r i e n c e a n d r e l a t i o n s hi p s , u s i n g t h e i r
e x i st i n g B P O p r o v i de r s t o s o u r c e a n a l yt i c a l s o l u t i o n s , of t e n g i vi n g
p r e f er e n c e t o t h e s a m e s e r vi c e p r o v i d e r . I n c r e a s i n g d em a n d f o r
a n a l yt i c s al s o l e d t o t h e em er g e n c e o f pu r e pl a y a n a l yt i c s s e r v i c e
p r o v i d er s wi t h d e e p d om a i n k n o wl e d g e , t e c h n o l o g y a n d s t a t i s t i ca l
e x p e r t i s e . A n d , a s a n a l yt i c s c a m e t o b e v i e we d a s a d ri v e r o f
c o m p e t i t i v e n es s , b us i n e s s m a n a g em e n t c o n s ul t i n g f i r m s al s o t u r n e d
t o a n al yt i c s b a s e d s o l u t i o n s t o e x p a n d t h e i r c o n s u l t i n g s e r vi c e s .
M a r k e t r e s e ar c h f i r m s , wh i c h h a v e a l wa ys b e e n p u r v e yo r s o f d a t a
b a s e d p r o d u c t s a n d s e r v i c e s , a l s o s t a r t ed p r o v i d i n g m o r e
s o p h i st i c at e d B A o f f e r i n g s . R at i n gs f i r m s a l s o u s e a n d of f er
a n a l yt i c s a s p a r t of t h e i r s ui t e s e r v i c e s . T h u s , a ce r t a i n n um b e r of
f i r m c a t e g o r i e s – i n t e r n a t i o n a l a n d d om e s t i c - - h a v e c om e t o
p a r t i c i p at e i n t h e B A / s er v i c e s s p a c e i n I n di a .

Fig. 4. Categories of Firms Providing BA Services in India

Firm Categories of Firms in BA Examples of Firms offering BA Services

Category Services
International Third Party IT / IBM, Cap Gemini, Genpact, Cognizant, WNS,
1 BPO/KPO Providers w/ HP, EXL Services, Mindtree
Indian Ops or Subsidiaries

7
http://www.expresscomputeronline.com/20091123/market01.shtml Bullish on BI

10
2 Indian Third Party IT Services TCS, Infosys, Wipro Technologies; HCL
BPO /KPO Providers Technologies, TechMahindra, Ramco Systems

3 Intnl Business Management Accenture, PWC - Diamond Information and

Consulting Firms or their Technology Consultants, India, Mckinsey
Indian subsidiaries Knowledge Center, Deloitte Consulting; BMGI,
Smaller: FirstSource, Kronos
4 Large Captive In-House Tata Motors Finance, GE, Amazon, Yahoo,
Offshored Analytics teams/ American Express, Target, Fidelity, J&J,
units of MNCs Citibank; Dell, HSBC, Barclays
5 Inlt. Pure play analytics firms Intl: Boston Analytics, Mu Sigma, Fractal,
w/ Indian Operations & Absolut DataData
Indian pure play analytics Indian: Manthan, Nabler, CustomerXPress
firms
6 Market Research / Business Value notes, Abacus Market Analytics –
Research firms (Division of IMRB International; Market
Equations
7 Ratings Firms CRISIL, D&B Transunion, Experian, Copal

A m a p o f t h e B A s er v i c e l a n d sc a p e b y p r o v i d er f i r m c a t e g o r y i s g i v e n
i n F i g . 5 , wh e r e “ D om a i n s” r e p r es e n t b us i n e s s p r o c es s e s o r
o p e r a t i o n s , i . e. , c u s t om e r s er v i c e , s u p p l y c h a i n , H R , f i n a n c i a l
p r o c e s s e s, e t c ; a n d “ V er t i c al s ” r e pr e s e nt i n d i v i d u al i n d u st r i e s .

11
 Fig. 5 BA Services Market Map by Service Provider Firm
Category

Multi-domain Cat 1, 2, 3 -
IBM, TCS,
e.g. HP, Ramco,
Cat 5 - Manthan Categories Accenture,
Systems , Categories 1, 2, 3, 5 PWC, etc
Pharmarc (Retail , 4, 5
Pharma analytics
Cat 5 -
resp. )
MUsigma,
Cat 4 -HP Fractal
Analytics; may be
more players not
tracked

Start up Categories
area; some 5, 6, 7; one
niche Cat 3 firm
Category 5

Single
domain

Single vertical Multi-vertical

e.g. Cat 5 - e.g.

CustomerXPress
Cat 5 - Nabler (web analytics )
(Banking CSM)
may have more Cat 7 - CRISIL (financial
niche players not analytics)
listed or tracked Cat 3 - Kronos (workforce
anal. & wkf mngmt)
Cat 6 - Poss. some market
research firms

A c c or d i n g t o l e a d i ng I T n e ws s o u r c e s , i n I n di a , t h e u s e of B A
p r o d u c t s a n d s e r v i c e s s t a n ds at a n i n f le c t i o n p o i n t , wi t h t he g r o wi n g
s c a l e of I n di a n b u ye r s a s we l l as t h e em e r g e n c e o f si g ni f i c an t
v e n d o r s wi t h g r e at er c a p a bi l i t i e s. F u r t he r , t h e g l o b al r e c e ss i o n t h a t
h a s l e d t o a s l o wd o wn i n d e v e l o p e d m ar k e t s , a n d t h e c o n c u r r e n t
g r o wt h of t h e I n di a n e c o n om y, h a s l e d t o a s u b st a nt i a l ex p a n s i o n of

12
t h e d om e s t i c B P O m a r k e t , wi t h I T / B P O f i r m s t r a di t i o n a l l y c a t e r i n g t o
t h e i n t e r n a t i o n a l m ar k e t , t u r n i n g t h e i r a t t e n t i o n t o I n di a n u se r s , a n d
b u i l di n g t h ei r I n di a n/ d o m e s t i c B P O o p er a t i o n s t o p u r s u e
o p p o r t u ni t i e s i n t h e I n d i a n m a r k e t . I n a dd i t i o n , a gr o wi n g n um b e r of
s e r v i c e p r o v i d er s f r om m a n a g e m e n t c on s u l t i n g, p ur e a n a l yt i c s a n d
m a r k e t r e s e ar c h a r e c u r r e n t l y i n t h e B A s p a c e .

R e c e nt l y I n t e r n a t i o n a l D a t a C o r p or a t i o n ( I D C ) r e l e a s e d i t s
2 0 1 2 M ar k e t S c a p e r e p o r t p r o f i l i n g a n d r a n k i n g t h e l e a d i n g pr o v i d e r s
i n t h e wo r l d wi d e b u s i n e s s a n a l yt i c s ( B P O ) s e r v i c e s m a r k et 8. A m o n g
t h e v e n d o r s i n cl u d e d i n t h e a n a l ys i s we r e A c c e nt u r e , C a p gem i n i ,
C o g n i z a n t , G e n p a ct , H P , I B M , I nf o s ys , T A T A C o n s u l t a nc y S e r v i c e s
( T C S ) , a n d W N S . I n t h e " M a r k et L e a d e r s " c at e g o r y f o r t h i s y e a r , t h e
I D C M ar k e t S ca p e me t h o d o l o g y p l a c e d :
1 . A c c e n t u r e,
2 . C a p g em i n i ,
3. Genpact, and,
4. TCS

[BOX:

Pricing comp ariso ns betw een In ternational an d Ind ian BA

Providers* 9

A c c or d i n g t o o n e i n d u s t r y s o u r c e , i n t h e g l o b al m ar k e t , i n t e r n a t i o n a l
a n d I n d i a n B P O s s ol u t i o n s p r o v i d e r s , ha v e , u n t i l r e c e n t l y, h a d
s o m e wh a t d i f f e r e n t i a t e d r o l e s wh i c h h av e b e e n r ef l e ct e d i n t h e i r c o st
s t r u ct u r es , e v e n a s I n d i a n B P O l e a d e r s h a v e b e e n m o vi n g up t h e

8
Companies covered in IDC Marketscape: Accenture Plc, BI S.a r.l, Cognizant Technology Solutions
Corporation, Current Technology Corporation, EXL Service Holdings, Fuji Xerox Co., Ltd., GENPACT
LIMITED,Grupo ACS, Hewlett-Packard Company, IBM, Oracle Corporation, RESMED EAP HOLDINGS
INC, SAP AG, SAS AB, SPSS Inc., Touring Club Suisse (TCS), WNS, Inc, Xerox Corporation
9
Informal industry source, needs to be validated further

13
v a l u e c h a i n . W hi l e g l o b a l l y, t h e i n t e r n a t i o n a l pl a ye r s t e n d t o b e
p r e f er r e d i n l a r g e c r i t i c al p r o j e ct s f or t h e i n i t i al d e s i g n a n d a n a l ys i s ,
I n d i a n B P O s t e n d t o b e pr ef e r r e d p r o v i de r s i n i nt e r n al pr o j e c t s a n d
i m pl e m e n t a t i o n . T hi s m a y b e c h a n g i n g a s t h e I n di a n d o m e st i c B P O
m a r k e t , a n d wi t h i n i t , t h e S MB s e g m e nt g r o ws .

A c c or d i n g t o a m i d - m a n a g em e n t a B A m a n a g e r wo r k i n g f or o n e o f
t h e t o p I n d i a n B P O s , t h e r e a r e t wo d i st i n c t si d e s t o t h e p r i c i n g
issue.

W h en i t c o m e s t o pr o j e c t d e s i g n , g l o b a l I T / B P O l e a d e r s a n d
m a n a g em e n t c o n s u l t i n g l e a d er s l i k e I B M , C a p g em i n i , A c c en t u r e. a n d
PW C t e n d t o b e t h e p r ef e r r e d p r o v i d e r s, a n d t h e y c h a r g e a p r e m i um
f o r s e r v i c e s i n t h e f o l l o wi n g ar e a s , wh i c h v a r i e s f r om U S D 3 0 0 0 / d a y
t o 5 0 0 0 / d a y, b a s e d o n t h e c r i t i c a l i t y o f t h e p r o j e c t ( T h e s e ar e
o v e r s e a s r at e s f o r a s s i g n m e n t s a r e u n d e r t ak e n a t i n t e r n a t i o n a l cl i e n t
s i t es . ) :

 D ef i n i n g m a r k e t s t r a t e g i e s f or n e w p r o d u c t s
 E n t e r p r i s e o r P r o d u c t E x p a n si o n s t r a t e g i e s
 P r o d uc t d i v er si f i c a t i o n s t r a t e gi e s
 R o a d m a p s f or n e w p r o d u c t s

T h e s e c o n d s e g m e nt i n v o l v e s d es i g n i n g:
 I n t e r n a l I T r o a dm a ps
 P r o d uc t f i t m e n t a n a l ys i s f r om m u l t i p l e v e n d o r s
 P r oc e s s i m p r o v e m e n t s
 B a s i c a n a l yt i c s

14
A c c or d i n g t o t h i s s ou r c e , I n d i a n B P O pl a ye r s a r e t yp i c a l l y n o t i n v i t e d
t o u n d e r t ak e p r o j e c t s i n t h e f i r s t s e gm en t . H o we v e r , f o r t h e p a s t f e w
ye a r s , I n di a n B P O s h a v e g a i n e d s o m e t r a c t i o n i n b i d d i n g f or t h e
p r o j e c t s i n t h e s e c on d s e gm e nt , n o r m a l l y c h a r g i n g U S D 1 0 0 0 - 1 2 0 0
/ d a y.

W h en wo r k i s m o v ed o f f s h o r e t o I n d i a, t h e n i n t e r n a t i o n a l co m p a n i es
n o r m a l l y c h a r g e a t U S D 1 5 00 - 2 0 0 0 / d a y a n d I n d i a n B P O s a t U S D 4 0 0 -
5 0 0 / d a y. T h e c om pa r a t i v e p r i c i n g i s s h o wn i n F i g. 6 .

FIG. 6. ANALYSIS & DESIGN PRICING FOR ANALYTICS

BA SERVICES PROVIDERS PRICING
Higher value PREFERRED USD3000 - 5000/day for
Segment work at international sites
Road maps for new International IT/ BPO – IBM, Cap Gemini,
products Genpact
Enterprise or Product Management consulting firms –
Expansion Accenture, PWC
Product diversification Indian IT /BPO – Typically not awarded
TCS, Infosys, HCL

Lower Value International IT/ BPO – IBM, Cap Gemini, USD1500 - 2000/day for
Segment Genpact work offshored to India
Internal IT roadmaps Management consulting firms –
Process Accenture, PWC
improvements
Product fitment
GAINING TRACTION
analysis from multiple
USD1000 -1200 /day for
vendors
Indian IT /BPO – work at international sites
Basic analytics
TCS, Infosys, HCL
USD350 - 400 /day for
work offshored to India

IMPLEMENTATION / EXECUTION PRICING

BA SERVICES PROVIDERS IMPLEMENTATION
PRICING

15
 International IT/ BPO – IBM, Cap USD900-1000/day for
Road maps for new products Gemini, Genpact work at international sites
Enterprise or Product Expansion Management consulting firms –
Product diversification Accenture, PWC USD350-400 /day for
work offshored to India
Internal IT roadmaps
Process improvements PREFERRED USD500 /day for work at
Product fitment analysis from international sites
multiple vendors Indian IT /BPO –
Basic analytics TCS, Infosys, HCL USD250 /day for work
delivered in India

C u s t om er s r a r el y t e n d t o g o f o r a f i x e d p r i c e b i d, t yp i c a l l y t h e y
e n g a g e c o n s ul t i n g f ir m s t o d o a n a s s e s s m e n t a n d c om e u p wi t h
r e c om m e n d at i o n s i n a t i m e a n d m a t e r i al m o d e. T h e p r o j e c t s t h at g et
g e n e r a t e d o u t o f t h a t a s s es s m e nt g e t awa r d e d s e p a r a t el y.

G e n e r al l y, i n t h e i m p l em e n t a t i o n p a r t of t h e c o n s u l t i n g wo r k , t h e
t r e n d r e v er s e s. E x e c u t i o n o f p r o j e c t s i s n o r m a l l y a wa r d e d t o I n d i a n
B P O s , p r i m ar i l y b e c a u s e of c o s t s a v i n gs . F or i m p l em e n t at i o n , I n d i a n
f i r m s c h a r g e U S D 5 00 / d a y f or wo r k d e l i v e r e d o n si t e o v er s e a s , a n d
U S D 2 5 0 / d a y f o r wo r k d el i v e r e d i n I n d i a. W he r e a s i nt e r n a t i on a l B P O
f i r m s c h ar g e U S D 9 00 - 1 0 0 0 / d a y f o r o n s i t e o v e r s e a s wo r k , a n d
U S D 3 5 0- 4 0 0 / d a y f o r wo r k of f s h or e d t o I n d i a . W i t h t h e g r o wt h o f t h e
d o m e s t i c B P O s e c t or , I n d i a n P P O l e a d e r s ar e l i k e l y t o b e t ak i n g o n
b o t h s e gm e n t s ( d e s c r i b e d a b o v e) m o r e a g g r e s s i v e l y. ] E ND BOX

3. Us es and De pl o ymen t (P en e tr ati on) of B A a mo ng user

or gani z a ti ons

A 2 0 1 1 B l o o m b er g B u si n e s s B u s i n e s s w e e k R e s e a r c h S e r v i c e s
s u r v e y f o u n d t h at 97 % of c om p a ni e s a r o u n d t h e g l o b e wi t h r e v e n u e s
of m o r e t h a n $ 1 0 0 m i l l i o n we r e u s i n g s om e f o r m o f b u s i n e s s

16
a n a l yt i c s , u p f r om 90 % i n 2 0 0 9. 10 T h e f ol l o wi n g we r e t h e u s e s o f
a n a l yt i c s i n or g a n i z a t i o n s p a r t i c i p at i n g i n t h e B l o o m b er g s t u d y i n
o r d e r of p r e v a l e n c e , c o n s i s t e nt wi t h t h e o t h e r r e p or t s o f B A u s a g e i n
f i r m s:
1 . S p r e a ds h e e t s
2. Business Reporting/ KPIs/ Dashboards
3. Forecasting
4 . G e n e r al S t a t i s t i cs
5 . Q u e r y a n d A n al ys i s
6 . D a t a a n d T ex t M i ni n g
7 . S i m ul a t i o n s a n d S ce n a r i o D e v e l o pm e nt
8 . M o d e l M an a g em e nt
9. Optimization
1 0 . W eb A n a l yt i c s
1 1 . S o ci a l M ed i a A n a l yt i c s
1 2 . I n t er a c t i v e D a t a V i s u a l i z a t i o n
1 3 . T e x t , A u d i o a n d V i de o A n a l yt i c s

Globall y, t he B loomberg Report f ound that m ost organizations sti ll tend

to vie w busi ness ana l ytics rat her narro wl y—prim ari l y as repor ting tools
(dashboards and Ke y P erf orm ance Indic ators) or basic f orecasting—
technolo gies that ha ve bee n arou nd f or a whil e. They al so ten ded to
rel y on tra diti onal standard s and tools su ch as spreadsheets, with
Dashboard s/ KPIs, and f orecast ing ranking second, and third in use.
Newer techn ologies t hat capitalize on e vo lvi ng sources of inf orm ation
(such as web data, social m edia, and unstructured dat a f rom text ,

10
Bloomberg Businessweek Research Services launched a research program in May 2011 to determine
the current state of business analytics in today’s organizations. The resulting paper, ““The Current State
of Business Analytics: Where Do We Go From Here?” was based on the findings from an online survey
of business professionals who are members of the Bloomberg Businessweek Advisory Board, an online
panel of 20,000+ professionals. Overall, 930 respondents across the globe were surveyed in April and
May 2011, including all levels and functional areas of the organization.

17
vi deo, and audio) ar e i n the ver y earl y a dopter phase. The Bl oom berg
report points out that organi zations were prim arily u sing business
anal ytics i n areas where reliance o n quantitative inf orm ati on is
t ypicall y m ore preval ent, specif i cal ly, f inance, marketing, and
inf orm ation technolog y and strateg y, but not in areas that tend to
collect qualitative data etc.

However, the st udy al so f ound that anal ytics use was m oving f urther
across organi zati on as a wh ole. In the l ast f ew years, more com panies
have been moving f rom using BA tools solel y to a ddress a sp ecif ic
issue or sim ply f or a specif ic f uncti on or initiative to a stage where
the y were usi ng business anal yti cs acros s f unctional areas and
business uni ts. I nteg rati on across the organi zation jum ped f rom 21% in
2009 to 3 4% representi ng bot h volume an d val ue growth in the use of
BA, a trend that was expected to continue. HP, a leading provider of
BA platf orm s and soluti ons, has mapped out the “anal ytics m aturit y” of
organi zation s which determi nes the use and deplo ym ent of anal ytics i n
organi zation s. (See Appendix f or s ynopsi s of HPs BA Maturity Model.)
According to the HP anal ysis, globall y, most companies are in Stage 2
or 3 of BA m aturity i n which the y are pri m ed f or m ore sophisticated
anal ytical tool s such as predictive m odeling, anal yt ics ba sed on social
m edi a and other unstructured data, a nd are looking to integrate BA
solut ions across business f unctions and units.

A basi c anal ysis by Ram co Syst em s, a Chenn ai headquartered BA

servi ces provider, puts BA tool s and applications u sag e in Indi a as
follows: C o n s o l i d a t e d r ep o r t i n g - 7 0 %; P e r f o r m a n c e M a n ag e m e n t
- 2 0 %, An a l yt i c a l ap p l i c a t i o n s - 1 0 %. A m a p of B A u s a g e b y I n d i a n
f i r m s, b y t o o l s a n d a p p l i c at i o n s i s p r o v i d e d i n F i g 7 .

18
 BA Usage in Firms by Tools and Applications

Advanced Analytical
Analytics Optimization Apps in
10% Indian
Predictive Modeling firms, but
many more
Simulations and Scenario Dev.
firms
Web/ Social, Other Unstructured data primed for
Mining Analytics this range,
moving
Forecasting beyond
basics
Use in
Source:
20%
Ramco
Consolidated performance Indian
management firms
Source:
Ramco
Sys.
Performance reporting –
How 70%
KPs/ Dashboard
Indian firms
Ad-Hoc Query & Analysis
are using BA.
Source:
General Statistics Ramco Sys.
Basic Spreadsheets
Analytics

Single Domain/ Multi-Domains/

Process/ / Unit Processes/
Units

K e y V e r t i c a l Ar e a s o f An a l yt i c s D ep l o ym e n t

I n t h e f o l l o wi n g s e c t i o n , I T / B P O d at a a r e b e i n g u s e d a s pr ox y
f i g u r e s f o r B A s i n c e m o s t B A a c t i v i t y i s l o c a t e d wi t hi n t h e I T / B P O
s p a c e a n d f r o m r e po r t s i t a p p e ar s t h at t h e B A se g m e nt m o r e o r l e ss
f o l l o ws t h e t r e n ds of t h e l a r g e r I T / B P O s ec t or . F o r i n s t a nc e , t h e
B F S I a n d T el e c o m v e r t i c a l s , wh e r e m o s t I T / B P O a c t i v i t y a n d g r o wt h
i s b ei n g g e n e r at e d , a r e al s o h i g h a c t i vi t y a n d g r o wt h a r e a s f o r B A .

19
F o r t h e s e a n d o t h er s e c t or s f or wh i c h en o u g h i nf o i s n o t a va i l a bl e o n
B A a c t i v i t y we u s e I T / B P O f i g u r e s .

O n e k e y e x c e p t i o n t o t hi s i s t h e p h a r m ac e u t i c a l s e c t o r , wh i c h i s a
s u b s t a n t i al u s e r o f a n a l yt i c s b u t d o e s no t al wa ys f i g u r e h i g h l y i n t h e
I T / B P O p r oj e c t i o ns .

A c c or d i n g t o a r e c e n t r e p o r t f r o m PW C I n d i a - E M E R G I N G T R E N D S
I N D I A N I T / I T E S I N D U S T R Y, t h e B F S I v e r t i c a l i s a d o m i n a n t
c o n t r i b u t or t o t h e do m e s t i c I T / B P O m ar k e t wi t h a s h a r e of 4 1 % m
f o l l o we d b y t h e H i - T e c h / T e l ec om a n d m a n uf a c t ur i n g v er t i c al s wi t h a
s h a r e o f 2 0 % a n d 1 9 % r e s p e c t i v el y. B y m o st r e p o r t s t hi s do m i n a n ce
i s ec h o e d i n t h e B A m a r k e t s h a r e o f t h e s e s e c t o r s , a s a n al y t i c s i s
m o r e p r e v a l e n t i n i nd u s t r i e s t h at a r e d a t a r i c h a n d n e e d t o
d i s c r i m i n at e ei t h e r t h e p r o d u c t s o r t h e cu s t om er s . O t h e r t h an t h e
t h r e e s e gm e n t s m e n t i o n e d, r e t ai l , h e a l t h c a r e , g o v e r n m e nt a r e a l s o
k e y v e r t i c a l s f o r a na l yt i c s .

F i g . 8. M a j o r V e rt i c a l s i n t h e I n d i a n I T/ I T E S m a r k et Market share
BFSI 41%
H i - T e c h/ T el e c o m 20%
Manufacturing 19%

.K e y D o m a i n s i n A n a l yt i c s
A PW C r e p o rt al s o o u t l i n e s k e y d o m a i ns wh e r e a n a l yt i c s a c t i v i t y i s
l i k el y t o b e f o c u s e d . A c r o s s d o m a i n s , f in a n c e , m a r k e t i n g , s a l e s a n d
s u p p l y c h a i n d o m a i n u s e a n al yt i c s e x t en s i v el y. B y m o st r e po r t s ,
c u s t o m e r a n a l yt i c s a p p e a r s t o b e t h e d om i n a nt d om ai n f o r B A ,
f o l l o we d b y f i n a n c i al a n a l yt i c s f o r t h e B F S I t h at i n cl u d e f r au d a n d
l o s s d e t e ct i o n, wa r ra n t y a n d r i s k a n a l yt i c s , a n d ot h e r a s s o c i a t e d
f i n a n c i al p r o c e s s e s . B r o a d e r gr o wt h a c r o s s pr o c e s s es a n d d om a i n s

20
i s ex p e c t e d a s c om p a n i e s c o n t i n u e t o i n v e s t i n B A . A cc o r di n g t o
PW C , t h e f o l l o wi n g wi l l b e c o nt i n u e t o be t h e k e y a r e a s f or a n a l yt i c s .

C u s t o m e r An a l yt i c s : • C u s t om e r s e g m e n t a t i o n • C u s t o m e r
a c q u i si t i o n o pt i m i z a t i o n • C r os s s el l a n al yt i c s • R et e n t i o n / a t t r i t i o n
a n a l ys i s • C u s t om e r s c o r e c a r d s
S u p p l y C h a i n An a l yt i c s : • S u p pl y a n d d e m a n d a n a l ys i s • S t r a t e g i c
s o u r c i n g a n a l ys i s • V e n d o r m a n uf a c t u r i n g • S c h e d ul i n g a n d q u a l i t y
c o n t r ol • R e g u l at o r y m a n a g e m e n t
• N et wo r k o p t i m i za t i o n
R i s k An a l yt i c s : • B e h a v i o r a l r i s k a na l ys i s • R i s k m o d el s • R i s k
a n a l ys i s s c o r e c ar d • C ol l e c t i o n s & r e c o v e r y a n a l yt i c s • R i sk m o d e l
d e v e l o pm e n t • M o d e l p e r f or m a nc e t r a ck i n g • R i sk m a n a g em e n t
dashboards
M a r k e t i n g An a l yt i c s : • S al e s p i p el i n e an d S al e s p e r f o rm a nc e
a n a l ys i s • M e di a a n a l ys i s & o p t i m i z a t i o n • C om p e t i t or a n al ys i s •
C am p a i g n a n a l ys i s .

A c c or d i n g t o PW C , a p a r t f r om t h e s e , B P O c o m p a n i e s wi l l a l s o
e x t e n d of f e r i ng s t o p r o d u c t , pr i c e , o n l i n e a n d o p er a t i o n s a na l yt i c s .

BA Use and Deployment in Indian SMBs

A M a r c h 2 0 1 2 a r t i c l e 11 c i t i n g A c c e nt u r e an d o t h er b u si n e s s
c o n s u l t i n g f i r m s , n ot e s t h a t , g l o b al l y, S M B s , ( c om p a ni e s wi t h l e s s
t h a n 1, 0 0 0 em pl o ye e s ) , s p e ci f i c a l l y t h os e d e a l i n g wi t h c u s t om e r d a t a

11
India's SMBs pursue BI benefits, March 1, 2012, http://www.zdnetasia.com/indias-smbs-
pursue-bi-benefits-62304046.htm

21
s u c h a s f i n a n ci a l s er v i c e s , h e a l t h c ar e , a n d r e t a i l , a r e s h o wi n g
s i g n i f i c a n t i n t er e s t i n B I t o o l s .

T h e r e a r e t h r e e b r o a d c a t e g o r i es f o r B I u s e a m o n g t h e s e c om p a n i e s :
C o n s um e r - c e n t r i c S M B s ; S M B s t h at wo r k f o r l a r g e c o m p a n i e s , a n d
S M B s t h a t o f f e r u n i q u e of f e r i n g s .

T h e f i r s t c a t e g o r y i n v o l v e s b u s i n e s s e s o f f er i n g p r o d u ct s o r s e r v i c es
t h a t a r e s u s c e pt i b l e t o c o n s um e r f e e d b a c k o r b a c k l a s h v i a o n l i n e
m e d i u m s o r wo r d o f m o u t h. S o, c om p a n i e s i n t hi s c a t e g o r y n e e d t h e
r i g h t B A t o o l s f o r c u s t o m e r t o p r e v e nt n e g a t i v e f e e db a ck . T h e
s e c o n d c at e g o r y i n cl u d e s b u s i n e s s e s t h a t ar e p ar t o f t h e s u p p l y
c h a i n f o r l a r g e c om p a n i e s , a n d a B I t o ol b e c o m e s a b u si n es s n e e d .
T h e t hi r d c a t e g o r y c om p r i s e s m o st l y s t a r t u p s wh i c h u s e B I t o o l s f o r
of f e r a u n i q u e s er v i c e , u s u al l y h i g h l y d a t a - d r i v e n.

A n a l yt i c s v e n d o r A ct i v ec u b e s n ot e s, t h at t h e l a s t d e c a d e h a s s e e n
I n d i a n S MB s a d o p t a p p l i c at i o n s s u c h a s E R P a n d C R M s u b s t a n t i a l l y,
s e t t i n g u p t h e b a s i c i nf r a s t r uc t ur e t o s up p o r t t h e i r b u si n e s s
p r o c e s s e s. S MB s , sp e c i f i c al l y t h o s e d ea l i n g wi t h c u s t om e r d a t a s u c h
a s f i n a n c i a l s er v i ce s , h e a l t hc a r e, a n d r e t a i l , a r e s h o wi n g si g n i f i c a nt
i n t e r e s t i n B I t o o l s. F u j i t s u C o n s u l t i n g I n d i a , n o t e s t h a t I n d i a n S M B s
a r e m o v i n g a wa y f r o m g at h e r i n g b a s i c i n f o r m a t i o n i n " s i m pl e
M i cr o s of t E x c el t a b l e s o r p i v o t s " a n d a do p t i n g s o p h i s t i c a t e d B I
a p p l i c at i o n s a n d t he r e i s t h a t " a l o t of " B I a d o p t i o n i s h a p pe n i n g i n
m a n u f a c t u r i n g , f i n an c i a l s e r v i c e s , b a n k i n g , i ns u r a n c e, a n d r e t ai l
c o m p a n i e s wi t h m or e t h a n f i v e b r a n c h es .

Fig. 9
Top Verticals for SMBs Top Domains for SMBs

22
 BFSI Customer analytics

Manufacturing Supply chain, Customer

analytics
Healthcare Customer analytics, records

Retail Customer analytics

H o we v e r , d es p i t e t he p r oj e c t e d g r o wt h i n t h e u s e of B A b y S M B s ,
t h e r e a r e t hr e e k e y c h a l l e n g e s f a c i n g I nd i a n S M B s l o ok i n g t o a d o p t
B I a n d a n a l yt i c s t o ol s , a s A c c e n t ur e h as n o t e d.

F i r s t , d a t a q u al i t y i s a p r o b l em b ec a u s e m o s t s u c h c om p a n i es d o n o t
h a v e t h e r i g h t d at a n e e d e d f or a n al ys i s . S e c o n d , i s c or p o r at e
c u l t ur e , wh e r e f or d e c a d e s , S M B s ha v e h a d t h e c u l t u r e o f ge t t i n g t h e
wo r k d o n e wi t h pr o b i n g f o r n e w o r i m p r ov e d s ol u t i o n s . T hi r d, t h e r e i s
a s h o rt a g e of s t at i s t i c a l l y- a n d a n a l yt i c al l y- i n c l i n e d p e o p l e wi t h i n
S M B s . T h e a r t i cl e no t e s t h a t I n t e r m s of s i ze , t h e S M B m a r k e t f o r
b u s i n e s s a n a l yt i c s i s s t i l l r at h e r s m a l l wi t h a b o u t 1 6 0 , 0 0 0 S M B
c o m p a n i e s . H o we v e r , t h e a d o p t i o n r a t e of i n t el l i g e n c e m i n i ng
s o f t wa r e i s p i ck i n g u p wi t h i n t hi s s e gm e n t . A c c o r d i n g t o A M I
P a r t n e r s , a m a n a g e m e n t c o n s ul t i n g f i r m, 7 9% of b a nk i n g a n d
f i n a n c i al s er v i c e s , i n s u r a n c e a n d r e al es t a t e) S MB s i n I n di a h a d
i n v e s t e d i n B I , d a t a m i ni n g an d a n al yt i c s s ol u t i o n s s i n c e 2 01 0 t o
i m pr o v e d a i l y o p e r a t i o n s , i n cr e a s e i n e f f i c i e n c y, a n d r e d u c e
d e p e n d e n c e o n m a nu a l i n t er v e nt i o n. A M I e st i m at e s t h a t t h es e
c o m p a n i e s h a v e s p e n t U S $ 2 3 m i l l i o n o n s of t wa r e - a s - a - s er vi c e
( S a a S ) - b a s e d B I of f e r i n g s i n t h e p a s t 12 m o nt h s . A c c e nt u r e p r e d i c t s
t h a t t h a t B A s o f t wa r e wi l l b e a U S $ 2 b i l l i o n o p p o r t u ni t y i n I nd i a o v e r
t h e n e x t f i v e ye a r s .

23
III. Growth

Dri ver s and Tr en ds

I D C h a s p r e di c t e d t h a t t h e B u s i n e s s A na l yt i c s m ar k et i n I n d i a i s
e x p e c t e d t o g r o wt h o v e r 2 2% o v er t h e 2 0 0 9 - 2 0 1 3 p e r i o d a s a r e s ul t
of I n d i a n e n t er p ri s e s v i e wi n g B A s ol u t i o n s a s a st r a t e g i c t o o l a n d a
c o m p e t i t i v e di f f e r e nt i at o r . T hi s i s e c h o ed b y M A I A I nt e l l i g e nc e , a
p r o m i n e n t I n di a n B A t o ol a n d p l a t f o r m s d e v e l o p e r , wh i c h s e e s t h e
I n d i a n B u s i n e s s I n t e l l i g e n c e m ar k e t , e s t i m a t e d t o b e a b o u t $ 4 0 - 5 0
m i l l i o n f o r B I / DW p l a t f o r m / p r o d u ct s a n d a b o u t $ 1 0 0 - 1 5 0 m i l l i o n f o r
s e r v i c e s , e x p a n di n g a t t h e r a t e o f 2 0 % C A G R .

C o n si d e r a b l e g r o wt h i s e x p e ct e d wi t h i n I n di a . A c c o r d i n g t o G a r t n e r ,
t h e m a r k e t f o r b u si n e s s i n t el l i g e n c e s o f t wa r e wa s e x p e c t e d t o
g e n e r a t e r e v e n u e o f $ 6 5 . 4 m i l l i o n i n 2 01 1 , u p 1 5 . 7% i n 2 0 10 i n
I n d i a. I D C e s t i m at es t h at c o mp an i e s w o r l d w i d e w i l l i n v e s t m o r e
t h an $ 1 2 0 b i l l i o n i n an a l yt i c s a c r o s s h a r dw a r e, s o f tw a r e a n d
s e r v i c e s b y 2 0 1 5 . Th e B I a n d p e rf o rm a n c e m an ag e m e n t a n a l yt i c s
r e v e n u e w a s p e g g e d a r o u n d $ 1 2. 2 b i l l i o n i n 2 0 1 1 , a 1 6 . 4%
i n c r e a s e f r o m t h e 2 0 1 0 r e v en u e o f $ 10 . 5 b i l l i o n . Th e m ar k e t fo r
b u s i n e s s i n t e l l i g e n c e so f t w ar e i n I n d i a w a s a r o u n d $ 6 5 m i l l i o n i n
2 0 1 1 , a n d i s g r ow i n g a t a r o u n d 1 5 - 1 6% o n an a n n u a l b as i s .

A 2 0 1 0 I B M g l o b al s u r v e y o f 2, 1 1 2 b u s i n e s s a n d i n f o r m a t i o n
t e c h n o l o g y d e c i si o n m ak er s a t m i d si z e b u s i n e s s e s, i n cl u di ng 1 0 0
f r om I n d i a, f o u n d t ha t , f o u n d t h at o v e r 7 0 p e r c en t o f f i rm s i n I n d i a
w er e p u r s u i n g an a l yt i c s s o l u t i o n s t o i m p r o v e d e c i s i o n ma k i n g
a n d o p e r a t i o n a l e f f i c i e n c y. Th e k e y d r i v e r s f o r m i ds i ze
b u s i n e s s e s i n v e s t i n g i n B A we r e : I mp r o v i n g e f f i c i e n ci e s ( 37 % ) ,

24
i mp ro vi n g cu s t o m e r t a r g e t i n g a n d i nf or m at i o n / k n o wl e d g e ( 3 7 % ) ,
a n d d r i vi n g e x p an si o n st r at e g i e s ( 1 5 % ) .

C o s t wa s a n a d o pt i o n b a r r i er f o r n e a r l y h a l f t h e f i r m s s u rv ey e d , a n d
s e l f s er v i c e, l o w c os t , e a s y t o u s e B A / B I t o o l s we r e t h e m o s t i n
demand.

Furt her, to im plem ent ne w IT strategi es, over 70 percent of Indian

mi dsize busin esses w ere rel yi ng on thei r primar y I T provid ers
relationship fo r a consultative relationship to help make the
necess ar y changes need ed to sup port innovati ve business st rategies.
In addition to cost considerations, produ ct reliabili ty a nd perf orm ance
were f ound to be th e m ai n f actors i n primar y I T vend or choice .

Key Areas of g row th: Verticals

T h e d o m e st i c I T - B P O m a r k e t c a n b e s eg m e n t e d i n t o D om i n a n t a n d
E m e r gi n g V e r t i c a l s . A s m e n t i o n e d b ef o r e , b e c a u s e t h e gr o w t h of B A
i s cl o s e l y l i nk e d t o t h e g r o wt h of t h e I T - I T E S B P O s e ct o r we u s e
I T _ B P O gr o wt h ( F i g. 9 ) a s a p r o x y t o d et e r m i n e B A gr o wt h . N o t a l l
v e r t i c a l s a r e e q u a l wh e n i t c om e s t o B A gr o wt h wi t h i n hi g h g r o wt h
v e r t i c a l s , t r a di t i o n a l a n d e m e r gi n g , i t i s n e c e s s a r y t o i d e nt i f y t h o s e
wi t h m o r e p o t e n t i al f o r B A a n d t h e f a c t or s dr i v i n g B A . A c c o r d i n g t o
N A S S C O M , I T m at u r i t y l e v e l s a r e h i g h i n T e l e c om a n d B F S I , wh i c h
a r e e v o l v i n g t o t h e n e x t l e v e l of I T a d o p t i o n wi t h n e w g e n er a t i o n
s e r v i c e s s u c h a s cl o u d a n d m a n a g e d s e r v i c e s m o d el s. I n d i a i s a l s o
wi t n e s s i n g t h e em er g e n c e of i nc r e a s e d B P O i n H e al t h c a r e , R e t a i l ,
a n d E d u c a t i o n , wh i c h a r e r a p i d l y a d o p t i n g I T . O f f s h or e a d v i s o r y f i r m
O f f s h o r e I n s i g ht s e x p e c t s a g r e at d e a l of M N C f oc u s i n t h e t i m e s t o

25
c o m e o n v e r t i c a l s l i k e t el e c o m , h e a l t h c a r e , o i l a n d g a s , i n s u r a n c e ,
e d u c a t i o n a n d g o v e r nm e n t . 12

W h e n g r o wt h r a t e s a r e cr o s s m a p p e d wi t h “ v e r t i c a l ac t i v i t y” b y
p r o v i d er f i r m s 13, ( s e e a t t a c h e d E x c el f i l e ) , i t i s p o s s i b l e t o s e e
f u r t h e r wh i c h a m o n g t h e g r o wt h v e r t i c a l s a l r e a d y h a v e a l ot o f
p r o v i d er s s e r v i ci n g t h em , a n d wh i c h m i g h t b e m or e o p e n t o p r o v i d e r
a c t i v i t y.

Fig. 11. Cross Mapping BA Vertical Growth with Service Provider Firm Activity
Growth Verticals in Indian Rate of Growth Current Status High Growth
Domestic IT/ BPO - BA of Verticals in Verticals for
(NASSCOM) Domestic SMBs
IT_BPO by BA
usage
Telecom 20.60% Dominant
Healthcare 17.50% Emerging ***
Government 17.50% Emerging
Retail 17.50% Emerging ***
Education 17.50% Emerging
BFSI 14.40% Dominant ***
Manufacturing 12.70% Dominant ***
Energy & Utilities 12.40% Dominant
Source: NASSCOM
Current Activity by BA Provider Firms
Busy Open

H i g h G r ow t h V e r ti ca l s

12
http://articles.economictimes.indiatimes.com/2011-02-19/news/28615144_1_global-delivery-
network-identity-related-de-duplication-and-verification-core-biometric-identification-system
13
Vertical activity is inferred from information on providers’ websites in which verticals they are most
active or who their clients are, and from trade news reports.

26
F r om F i g ur e 1 0 we c a n s e e t h at a l t h o ug h T e l e c om , B F S I a n d
M a n u f a c t u r i n g a r e es t a b l i s h e d h i g h g r owt h v e r t i c a l s , t h e s e a r e al s o
a r e a s wh e r e t h e r e i s s i g n i f i c an t p r o v i d e r a c t i v i t y a l r e a d y
I n t e r n a t i o n a l a n d I n d i a n or i g i n I T B P O p r o v i d er s a n d M N C c o n s u l t i n g
f i r m s a r e al l p a ye r s i n t h e B F S I s e ct o r . H o we v e r m os t a c t i vi t y s e e m s
t o b e i n t h e m u l t i n a t i o n a l a n d I n di a n p r i v a t e b a nk i n g , wh i c h i m p l i e s
t h a t t h e r e i s s p a c e i n B F S I s u b - s e gm e n t s f o r n e w e n t r a n t s su c h a s
n a t i o n al i z e d a n d r ur a l b a n k s , p r i v a t e e q u i t y a n d f i n a n c i al s er v i c e s ,
a n d i n s ur a n c e. R e ce n t l y, l e a di n g I T / B P O f i r m s ar e t a r g e t i ng t h e
n a t i o n al i z e d I n d i a n b a n k s a s we l l . G e n pa c t wi t h i t s a c q u i s i t i o n o f
A t ya t i T e c h h a s a l r ea d y m a d e a n e n t r y i n t o n at i o n al b a n k s an d r ur a l
b a n k i n g . I nf o s ys , a n d t h e s m a l l e r R a m c o S ys t e m s, a l s o l i s t s o m e
n a t i o n al i z e d b a n k s a s t h e i r cl i e nt s . H owe v e r t h e l i s t i s s ma l l
c o m p a r e d t o t h e n um b e r o f n a t i o n al i z e d b a n k s i n o p e r a t i o n .
C u s t om er a n al yt i c s , f r a u d a n d r i sk m i t i ga t i o n a n a l yt i c s , i n t eg r a t i n g
s ys t e m s o n a s i n g l e c o r e p l a t f or m , a s we l l i nt e g r a t i o n o f v a ri o u s
d e l i v e r y c h a n n e l s a n d e a s y c o l l a b o r at i o n b e t we e n v a r i o u s u n i t s a r e
k e y d om a i n s i n t h i s v e r t i c al . S m al l er n i ch e p l a ye r s a r e e n t er i n g t h e
s e gm e n t b y p r o v i di ng h i g h er e n d s p e c i a l i ze d d om ai n a n a l yt i c s . E . g .
C u s t om er X P s , a b ou t i q u e f i r m i s g ai n i ng s t r e n g t h b y d e v e l o p i n g r e a l
t i m e a n al yt i c s f o r ba n k s s u c h a s I C I C I .

C u s t om er a n al yt i c s a n d i nt e g r at i o n a r e a l s o k e y i n T e l e c o m wh i c h i s
e x p e c t e d t o s h o w t he s t r o n g e s t g r o wt h a n d wh i c h h a s o u t so u r c e d
a n a l yt i c s m a i n l y t o m a j o r I n d i a n a n d i nt e r n a t i o n a l I T / B P O s . G ar t n e r
h a s p r e di c t e d t h a t by 2 0 1 3 , 3 3 % of B u si n e s s I n t el l i g e n c e
f u n c t i o n a l i t y wi l l b e c o n s um e d t hr o u g h h a n d h e l d d e v i c e s. A l o n g wi t h
C S M , t el e c o m s wa n t t o g e t a u ni fi e d v i e w o f t h ei r o p e r a t i o n s . N e w
f o c u s o n e nt e r pr i s e p r o c e s s e s l i k e H R , p r o c u r e m e n t ; i nt e g r a t i n g
b u s i n e s s/ d a t a p l at f o r m s a r e wh e r e f i r m s a r e e x p e c t e d t o i n ve s t .

27
S p e ci a l i z e d a n a l yt i cs f or m o bi l e c u s t om e r s i s a n o t h er a r e a o f
g r o wt h .

E x p a n si o n pl a n s of l a r g e m a n u f a c t u r i n g o r g a n i za t i o n s a r e d r i vi n g
t h e a d o pt i o n o f B A p l a t f o r m s a n d l a t e st t e c h n ol o gi e s s uc h a s p r i v a t e
c l o u d , e n t er p r i s e m o b i l i t y, e t c , t o e n h an c e c om p e t i t i v e n e s s a n d
b e t t er s er vi c e t o t h e e n d c u st o m e r s. L ar g e m a n u f a c t ur i n g un i t s t e n d
to rely on large BPO providers and consulting firms, but some
sm a l l er n i c h e pl a ye r s a r e a l s o pr o v i di n g s u p p l y c h a i n a n a l yt i c s a n d
p r o c e s s i m p r o v e m en t s ol u t i o n s t o t h e se f i r m s. W i t h i n m a nu f a c t ur i n g
C P G s f e at u r e m o s t p r om i n e n t l y o n M N C s ’ r o st e r s , b u t s u b s e gm e n t s
s u c h a s a u t o m o t i v e a n d a u t om o t i v e s u pp l i er s a r e a l s o l i s t ed . P l u s ,
a s S M B s i n m a n u f a c t u r i n g ar e p oi s e d t o g r o w, m o r e a d v a n c ed
a n a l yt i c s a c t i v i t y g r o wt h i s e x p ec t e d a s f i r m s t r y t o dr i v e c om p e t i t i v e
a d v a n t a g e s t hr o u g h g r e a t e r ef f i ci e n c i e s i n s u p pl y c h a i n s a n d
p r o c u r e m e n t , b et t e r p r o c e s s m a n a g e m e n t , l o gi s t i c s , e t c.

E n e rg y a n d U t i l i t i es i s s er v i c e d m o s t l y b y l a r g e I T / B P O p r o v i d e r s .
L e a d i n g B P O s s u c h a s W I P R O a n d W N S l i s t t h i s s e ct o r a s on e t h e i r
m a i n v e r t i c a l s . S m al l e r B P O s s u c h a s R am c o a l s o p r o vi d e s e r v i c e s
t o t h i s s e g m e n t . R e t a i l a u t o m a t i o n a s we l l a s i n v es t m e n t s i n i n t e r n a l
p r o c e s s e s, d i gi t i za t i o n of d i st r i b ut i o n o f p o we r a n d sm a r t g r i d
t e c h n o l o g i e s a r e d r i v i n g a n a l yt i c s gr o wt h i n t hi s v e r t i c a l . O f f e r i n g s
f o r d em a n d m o d e l i ng , pr o c e s s c o n t r o l m a y h o l d p o t e nt i a l .

A m o n g t h e em e r gi ng v e r t i c a l s , r e t a i l a nd h e a l t h c a r e f e a t u r e
p r o m i n e n t l y a m o n g I T - B P O pr o vi d e r s a s we l l a s m aj o r c o n s u l t i n g
f i r m s’ a c t i vi t y.

28
R e t ai l a p p e a r s t o b e a gr o wt h p r o s p e ct f o r sm al l er a n al yt i c s
p r o v i d er s o f f e r i n g s p e c i a l i ze d d om a i n s – c u s t om er , i n v e nt o r y o r
s u p p l y c h a i n – a n a l yt i c s o r b a si c m a r k e t r e s e a r c h. R e t a i l i s a l s o a n
a r e a wh e r e m a n y m a r k e t r e s e a r c h f i r m s h a v e b r o a d e n e d t he i r
of f e r i n g s t o i n c l u d e a n a l yt i c s . S m al l er s p e c i a l i ze d o n l i n e r et a i l a n d
we b a n a l yt i c s f i r m s a r e em e r g i n g i n t h i s a r e a. T h e c o nt i n u ed g r o wt h
of o r g a n i ze d r e t ai l i n I n d i a ( m al l s , f o r ma t st o r e c h ai n s , o nl i n e retail) is
expected to d r i v e t h e g r o wt h o f a n al yt i c s , a s t h e s e st o r e s t r y t o
c o n n e c t b et t e r wi t h t h e i r c us t om e r s .

H e a l t h c a r e i s o n e of t h e f a s t es t g r o wi ng B P O v e r t i c a l s, wh e r e m a j or
m a n a g em e n t c o n s u l t i n g f i rm s a n d I T / B P O o f f er s er v i c e s . C o g n i za n t
l i s t s H C a s i t s m ai n v e r t i c a l . H o we v e r , m o s t l i st e d c l i e n t s a p p e a r t o
b e l o c at e d ou t si d e I n d i a , wh i c h i n d i c at e s s c o p e f o r d e v el o pi n g t h i s
m a r k e t . L a r g e h o s pi t a l s a r e i n t h e pr o c es s o f a d o pt i n g H o s pi t al
I nf o r m a t i o n S ys t e m s (H I S ) . E l ec t r o n i c M e d i c a l R ec o r d s ( E M R ) i s
a l s o b ei n g i n v e s t e d u p o n a g g r e s s i v el y b y v a r i o u s h o s p i t al s . S o m e
sm a l l er B P O s a n d an a l yt i c s p r o v i d er s sp e c i a l i z i n g i n c u s t om e r
s e r v i c e s a n d p a r t i c u l a r d om ai n s a r e a l so o f f e r i n g s er v i c e s i n H C .
U s e of s o c i a l n e t wo r k i n g a n d c l o u d c om p u t i n g t o b e t t e r c o nn e c t a n d
m a n a g e c us t om e r i n f o r m a t i o n i s e x p e ct e d g a i n t r a c t i o n.

T h e ed u c a t i o n s e ct o r h a s b e e n i d e nt i f i e d a s a n ot h e r g r o wt h v e r t i c a l ,
a n d t hi s s e em s t o b e wi d e o p e n , a s a m o n g t h e l ar g e pr o vi d e r s , o n l y
I B M s e em s t o h a v e o f f er i n g s i n t h i s s e g m e n t . T h er e ar e h owe v e r
n i c h e pl a ye r s i n t h e e d u c a t i o n s e g m e nt , wh o d e a l wi t h e d u c a t i o n
d a t a b u t d o n o t b i l l t h em s e l v e s as a n a l yt i c s p r o v i d e r s o r f e a t u r e i n
t h e I T / B P O l a n d s c a p e . M a n y a r e l e v e r ag i n g t h e g r o wi n g t r en d i n
p u b l i c a n d p r i v a t e hi g h e r e d u c a t i o n i n s t i t ut i o ns t o o f f er o nl i n e
of f e r i n g s, t e st i n g, e t c . T h er e i s b o t h p r i v a t e a n d p u b l i c i n v es t m e nt
f l o wi n g i n t o t h e v er t i c a l , h o we v e r , t h e r e a r e c o n si d e r a b l e c h a l l e n g e s

29
t o o , s i n c e d e s pi t e t h e a wa r e n e s s of I T a n d i t s b e n ef i t s , t h e y d o n o t
h a v e s uf f i c i e nt f u n ds t o i nv e s t i n e x p e ns i v e I T s o l u t i o n s .

G o v e rn m e n t , a n ot he r em e r g i n g v e r t i c al wi t h a h i g h g r o wt h r a t e i s
t h e ar e a of f o c u s f o r s om e of t h e l ar g e I n d i a n I T / B P O p r o v i d e r s .
G o v e r nm e n t pr o j e c t s s o f a r h a v e b e e n t yp i c a l l y l a r g e, G r e e nf i e l d
p r o j e c t s t h at h a v e go n e t o t h e m a r k e t l ea d e r s i n I T / B P O a n d
c o n s u l t i n g. H o we v e r , a s m o r e s t at e s a r e a l s o g e a r i n g u p f o r e -
g o v e r n a n c e , a n a l yt i c s g r o wt h i s e x p e c t e d t o a r i s e i n e d u c at i o n, c i vi l
s u p p l i es , p o we r a n d l o gi s t i c s f o r c i t i z e n e n a b l e m e n t .

W h i l e p h ar m a c e u t i c a l s i s n o t i d e nt i f i ed s e p a r at e l y a s a hi g h g r o wt h
v e r t i c a l f o r t h e d om e s t i c B P O m a rk et , P h a r m a a hi g h a c t i v i t y a r e a f or
a n a l yt i c s . S om e m a j o r I T / B P O a n d c o n s u l t i n g s e r v i c e s p r o vi d e r s ar e
a l r e a d y p r o v i d e o f f er i n g s i n t h i s s p a c e. H o we v e r , f r om c l i e n t l i s t s i t
i s ev i d e n t t h a t p r ov i d e r s a r e m o s t l y s e r v i c i n g p h a r m a c e u t i c a l c l i e n t s
l i s t e d o u t s i d e I n d i a . Z a n d u a n d D a b u r a r e t h e o n l y t wo m aj o r I n d i a
c l i e nt l i s t e d . S m a l l er p ur e p l a y a n a l yt i c s f i r m s l i k e P h a rm a A r c ( I n d i a )
a n d M u s i gm a ( U S ) a l s o a p p e a r t o b e se r v i n g i n t er n a t i o n a l m a rk et . I t
i s p os s i bl e t h at t h i s s e c t o r u s e s i n - h o u se c a p a b i l i t i e s , b ut t h e I n di a n
P h a r m a a n a l yt i c s m a r k e t m a y b e a m u nd e r s e r v e d a r e a, b u t m o r e
s t u d y a b o u t a n a l yt i c s a c t i vi t y i n t h e s ec t o r i s r e q u i r e d .

I n a d di t i o n t o t h e g r o wt h v e r t i c al s i d e n t i f i e d b y N A S S C OM , s om e
o t h e r v e r t i c a l s of i n t e r e s t : C o m mu n i c a t i o n s an d M e d i a wh e r e a
n u m b e r of n i c h e p l ay e r s a r e o p er a t i n g , e s p . t h o s e wi t h m a r k e t
r e s e a r c h b a c k gr o u nd s . T r a n sp o r t & L o g i s t i c s i s a n ot h er v e r t i c a l
wi t h a l o t of a c t i v i t y, h o we v e r a n u m b er o f b o t h m a j o r I n d i a n a n d
I n t e r n a t i o n a l I T / B P O p r o v i d e r s a r e a l r e a d y p r e s e n t . Tr a v e l a n d
H o sp i t a l i t y, a l t h o u g h n o t a g r o wt h s e g m e n t i n t e r m s o f I T - B P O

30
s p e n d i n g , i s a gr o wt h s e c t o r i n I n d i a wh e r e s om e l a r g e ( C o g n i za n t ,
I nf o s ys ) a n d s m al l e r ( M i n dt r e e) a n d ni c h e ( M a r k e t E q u at i o ns )
o p e r a t o r s a r e p r o vi d i n g s e r v i c e s . A n o t h e r v er t i c al , o u t s i d e of
I T / B P O g r o wt h v e r t i c a l s , i s C o n st r uc t i o n a n d r e a l e s t a t e . T h e r e a r e
l a r g e a n d n i c h e p r o v i d e r s s e r v i c i n g t hi s s e gm e n t .
,
G ro w th Tr e n d s i n B A P r o d u ct s an d o f f e r i n g s

A n I B M f o r e c a st p l ac e s m o b i l e B I , p r e di c t i v e a n al yt i c m o d e l s , a n d
i n t e gr a t e d r i s k m a na g em e n t a s t h e p r i m a r y h i g h gr o wt h a r e a s f or
b u s i n e s s a n a l yt i c s i n t h e n e x t 2 - 3 ye a r s i n I n di a 14. G a r t n e r h a s
p r e d i c t e d f o u r k e y c h a n g e s i n t h e wo r l d of a n a l yt i c s i n t h e ne a r
f u t u r e . A m o n g t h e m : B y 2 0 1 4 , gl o b a l l y, i t i s ex p e c t e d t h at 30 p e r c e nt
of a n al yt i c s a p p l i c a t i o n s wi l l u s e p r o a c t i v e , pr e d i c t i v e a n d
f o r e c a s t i n g c a p a bi l i t i e s . A n d b y 2 0 1 3 , 1 5 p e r c e nt of B I d e p l o ym e n t s
wi l l c om bi n e B I , c o l l a b o r a t i o n a n d s o c i a l s o f t wa r e i nt o d ec i si o n -
m ak i n g e n v i r o n m e nt s . I n o t h e r wo r d s , t he g r o wt h i n B A i s l i k e l y t o b e

14
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h i g h e r o n t h e m i d - h i g h e n d of t h e B A ma r k e t .

S o u r c e : D a t a Q u e s t http://dqindia.ciol.com/content/top_stories/2011/111110904.asp

T h e B A s e r v i c es m ar k e t i s e s t i m at e d at U S D 1 5 0 m i l l f or 2 01 1 15.
P r e d i ct i o ns f r om m ar k e t l e a d e r s, p ut t h e g r o wt h r at e at 2 0 % C A G R
g r o wt h r a t e o v er a l l . A s l i g h t l y h i g h e r gr o wt h r a t e of 2 2 % C A G R ( I D C )
c a n b e a s s u m e d f o r t h e a d v a n c ed a p p l i c a t i o n s m a r k e t a s t ho s e h a v e
b e e n p r e di c t e d t o b e t h e p r i m a r y h i g h g r o wt h a r e a s f o r B A i n t h e
n e x t 2 - 3 ye a r s i n I n d i a . I f a s su m ed t h at b a s i c a n a l yt i c s c on s t i t u t e d
a p p r o x i m at e l y 7 0 % of t h e I n d i a n u s er m a r k e t i n 2 0 1 1 o r U S D 1 0 5
m i l l i o n, a n d t h e 3 0% wa s t h e m i d – hi gh r a n g e a n a l yt i c a l ap p l i c at i o n s
o r $ U S D 4 5 m i l l , t h e n u s i n g t h e a n n u a l g r o wt h r a t e s o f 2 0% a n d 2 2%
r e s p e c t i v el y, we c a n a r r i v e a t f i g ur e s t o s e e s o m e g r o wt h
p r o j e c t i on s .

15
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32
 Indian Market for Basic and Advanced Analytics 2011 -2013

140
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USD mill

2012-2013
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Basic Analytics Mid-Advanced Analytics

Growth: How service providers are responding

T h e t o p s e r vi c e p r o v i d e r s i n t h e B A s p a c e a p p e a r t o b e p u rs u i n g
o p p o r t u ni t i e s a g g r e s s i v el y i n t h e I n di a n B A s e r v i c e s m a r k et .

A k e y r e s p o n s e a m on g p r o v i d e r s , a l t h o ug h n o t I i m i t e d t o t h e I n di a n
m a r k e t h a s b e e n t ha t m a n y m a j o r s e r v i c e p r o v i d e r s a r e a c t i v e l y
a c q u i r i n g a n a l yt i c s f i r m s . I B M h a s s p e nt $ 1 6 b i l l i o n o n a c q u i r i n g
m o r e t h a n 2 5 a n al yt i c s c om p a ni e s s i nc e 2 0 0 5 , a n d i t ' s p r o j ec t i n g $ 1 6
b i l l i o n i n a n al yt i c s re v e n u e b y 2 0 1 5 16. C og n i z a n t b o u g ht M a r k e t R x i n
2 0 0 7 f o r $ 1 3 5 m i l l i on , i t s l a r g e st a c q u i s i t i o n t i l l d at e , t o g et a h e a d
s t a r t i n t h e a n a l yt i c s s e g m e n t . M a r k et R x 's p r o p ri et a r y a n a l yt i c s
s o f t wa r e p l a t f o r m wa s h e l p i n g p h a r m a co m p a n i es i m pr o v e t h e i r
m a r k e t i n g p e rf o r m a n c e a m o n g o t h e r t hi n g s , a n d c a m e wi t h r e v e n u e s
16
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33
of a r o u n d $ 4 0 m i l l i on a t t h e t i m e o f t h e a c q u i s i t i o n . T h e a c q u i s i t i o n
g a v e C o g n i za n t a c c e s s t o t he t o p 2 0 p h a r m a c om pa n i e s i n t h e U S a t
t h a t t i m e, a n d e nt e rp r i s e a n al yt i c s c o n t i n u e s t o b e a f oc u s a r e a .
G e n p a c t ’ s a c q ui s i t i o n of A t ya t i T e c h n ol o g i e s h as g i v e n i t a c c e s s t o
s e v e r a l I n d i a n p u b l i c s e ct o r b a nk s an d t h e em er g i n g r ur al ba n k i n g
s e gm e n t . I N M a y 2 0 1 2 , W I P R O T e c h n o l o g i e s a c q ui r e d P r o m a x
A p p l i c at i o n s G r o u p ( P A G ) , a n A u st r a l i a b a s e d a n a l yt i c s c om p a n y, t o
b o l s t e r of f e ri n g s i n t r a d e pr om ot i o n p l a n n i n g , m a n a g e m e nt , a n d
o p t i m i za t i o n s o l ut i o n s .

I B M h a s e s t a b l i s h e d e i g ht a n al yt i c s s ol u t i o n s c e n t e r s g l o b al l y a n d ,
i n I n d i a , h a s a c e n t r e o f c o m p et e n c e wh i c h l e a d s i t s B A O p ra c t i c e
wo r l d wi d e . I B M ’ s B A O p r a c t i c e h a s 7, 8 0 0 a s s o c i a t e s, t h e b u l k of
wh o m a r e i n t h e I n di a n c e n t r e , wi t h hi r i n g f o c u s e d o n o b t a i n i n g
c r i t i c a l d o m a i n c o n su l t a nt s 17.

A c c e n t u r e 18 a d d e d 8 , 0 0 0 p o s i t i o n s t o i t s I n d i a n o p e r a t i o n s i n 2 0 0 9 -
2 0 1 0 . M a n y o f t h e ne w e m pl o ye e s we r e h i r e d i n b u si n e s s a na l yt i c s .
V e n d o r s ar e t ak i n g v a r i o u s i n i t i at i v e s t o m e e t t h e m a r k e t d e m a n d . I n
I n d i a, A c c e nt u r e i s f o c u s i n g o n d e v el o pi n g n e w b u s i n e s s a n a l yt i c s
t o o l s.

F o r l e a d e r s s u c h a s I n f o s ys , t h i s i s a n a t u r a l pr o g r e s s i o n u p t h e
v a l u e c h a i n t o a m o r e s o p h i st i c at e d i n f o r m at i o n s p a c e. A c c o r d i n g t o
I nf o s ys s p o k es p e r so n s , I nf os ys a l r e a d y h a s a s t r o n g p r a c t i c e i n
a n a l yt i c s a s p a r t of i t s s ys t em i n t e gr a t i on b u s i n e s s , b u t e x p e c t s t o
get more verticalized.

17
I B M i s b e t t i n g bi g on B A O . S i n c e 2 0 0 5 , i t h a s m a d e n o l e s s t h a n
2 5 a c q u i s i t i o ns i n t h i s s p a c e , s p e n d i n g s o m e t hi n g l i k e $ 1 4 b i l l i o n ,
s a i d S i m o n T h om a s of I B M , t h e B A O s er v i c e l i n e l e a d e r .
18
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I n t e r n a t i o n a l B P O pr o v i d er s l i k e C o g ni z a n t wh o a l s o p r o vi d e B A
s o l u t i o n s wa n t t o d o m or e b y p r o v i di n g “ h i g h - t o u c h a n al yt i c s
c o n s u l t i n g, b ut pr o vi d e i t a cr o s s al l b u s i n e s s p r o c e s s e s a n d
f u n c t i o n s a t t h e e n t e r p r i s e l e v el ” .

M e a n wh i l e , s o m e M N C s ar e b u i l d i n g u p t h ei r o wn i n - h o u s e e x p e r t i s e
a s we l l . F o r i n s t a n c e , a l e a d i n g m u l t i n at i o n al b a n k i n I n d i a, h a s b e e n
r e c r ui t i n g h e a v i l y f or i t s e a st e r n r e g i o n al o f f i c e wh i c h m a n ag e s
i n t e r n a t i o n a l c l i e n t s. U s i n g S A S a s a t ec h n i c al pl a t f o r m t h ey a r e
b u i l di n g i n h o u s e c a p a c i t y f o r B A s ol u t i o n s r e cr u i t i n g h e a v i l y f r o m
t h e I n d i a n S t at i s t i c al I n s t i t u t e.

O n t h e ot h e r h a n d , b o u t i q u e f i r m s t h at d o i t at t h e l e v el of a s i n gl e
b u s i n e s s p r o c e s s ar e a l s o e s t a b l i s hi n g t h e i r n i c he s . I n f ac t ,
a c c o r d i ng t o G a rt n er , t h e b u l k of I n d i a b u s i n e s s a n a l yt i c s m a r k e t
t o d a y i s d om i n a t e d , n o t b y M N C s , b ut b y b o u t i q u e f i r m s , s p e c i a l i z i n g
i n , s i n g l e p r o c es s e s o r s i n g l e v e r t i c a l s, s u c h r i s k a n al yt i c s o r r e t ai l
a n a l yt i c s .

O v e r a l l , a s a n I B M s t u d y c i t e d e ar l i e r no t e d , m o s t m i d - s i z e d
b u s i n e s s e s a r e s e ek i n g a c o n s ul t a t i v e r e l a t i o n s h i p wi t h t h e i r p r i m a r y
I T p r o v i d er t o h el p t h em m a k e t h e n e c es s a r y c h a n g e s n e e d e d t o
s u p p o r t i n n ov a t i v e b u s i n e s s s t r a t e gi e s. A c c o r d i n g t o t he 2 01 2 I D C
W o r l d wi d e B u s i n e ss A n al yt i c s B P O S e r v i c e s 2 0 1 2 V e n d o r A n a l ys i s "
B P O p r o v i d er s t h at b u i l d c o m p e t e n c y a r o u n d i n d u s t r y- s p e c i f i c B P O
a n d a n a l yt i c s o u t s o u r c i n g a s we l l a s e xh i b i t t h e c a p a b i l i t y t o a s si s t
c l i e nt s wi t h b u s i n e ss c o n s ul t i n g s e r v i c e s wi l l g a i n a b i g g er p o r t i o n of
t h i s b u si n e s s. "

35
SUMMARY AND AN ALYSIS

Anal ytics Market SWOT for new entrants

Streng ths

Strong growth predic ted with many established players and gr owing
number of ni che and boutique players.

H i g h aw a r e n e ss a n d p r e v al e n c e o f b a s i c B A t o o l s a n d s e r vi c e s .
B a s i c I T i nf r a st r u ct u r e i n pl a c e i n S M B s i n m a n y g r o w t h v er t i c a l s .

S M B s M i d - s i ze d b u s i n e s s e s i n I n di a a r e p r i m e d f o r i n v e s t m e n t s i n
B A , B A p er c e i v e a s a c o m p e t i t i v e a dv a nt a g e d r i v e r .

Opportunities

S p a c e f or i n d u s t r y a n d d o m ai n s p e c i f i c o f f e r i n g s i n d i c at e d i n r e p o r t s
and research.

E x p a n si o n a n d p r of i t a b i l i t y a r e k e y t r e nd s a n d d r i v e r s f or c o m p a n i e s
i n g r o w t h v e r t i c a l s. A n d c o s t r e d u ct i o n a n d i m p r ov e d e f f i c i en c i e s a r e
t h e m a i n d r i v e r s f o r b u s i n e s s a n a l y t i c s . W i t h i d e n t i f i e d n e e d, e a s i e r
to design offerings.

S p a c e f or m i d- h i g h e r r a n g e o f f er i n g s , a s m a ny f i r m s al r e ad y h a v e
b a s i c s i n pl a c e a n d a r e l o o k i n g t o t h e ne x t l e v el of s ol u t i o n s t h a t c a n
d r i v e e x p a n s i o n a n d p r o f i t a b i l i t y . P er f o r m a n c e m a n a g e m e n t a n d
a d v a n c e d a n al y t i c al a p p l i c a t i o n s e x p e ct e d t o g r ow . A l s o n ew e r
t e c h n o l o g i e s a r e p r o v i d i n g n ew e r s o u r ce s o f d a t a a n d f i r m s a r e y e t
t o u s e B A t o l e v e r ag e underutil i ze d new sources of text, video and
other unstruct ured d ata.

36
Use of business a nal yti cs in areas wi th heavy reli ance on qua ntit ative
inf ormation, l eaving opportunities f or BA offeri ngs in newer
unstructured social media, text and vide o data.

S p a c e f or ni c h e p l a y e r s s p e c i a l i zi n g i n d o m a i n s or v er t i c al s d r i v e n
b y t w o f a ct o r s :

M a n y l a r g e p l a y e r s m o v i n g t o w a r d s p r ov i d i n g B A i n t e gr a t i o n
a c r o s s b u s i n es s p r oc e s s e s a n d f u n c t i o ns a t t h e e n t er p r i s e
l e v e l a n d s e r v i c e s i n n e w t ec h n o l o gi e s.

T h e r i s e of m e d i u m a n d s m al l e nt e r p r i se s i n m a n u f a c t u r i n g,
f i n a n c i al s er v i c e s , r e t a i l , h e a l t h c ar e a nd o t h er v e r t i c al s w i t h
b a s i c i nf r a st r u c t u r e i n p l a c e l o o k i n g f or l o w er c o s t s o l u t i o n s
f r om sm a l l er s p ec i a l i ze d p r o v i d e r s .
.
F u n ct i o n a l i t y w i s e ( s e e A p p e n d i x o n H P M a t u r i t y M o d e l ) c o m p a n i e s
a r e l o o k i n g f o r i nt e g r a t i o n of B A t o o l s a n d a p p l i c at i o n s a cr o s s
b u s i n e s s p r o c e s s e s a n d u n i t s , p a c k a g e d s o l ut i o n s a n d s e r v i c e s
( p l a t f or m B P O ) , a n d e a s i er t o u s e t o o l s t h a t c a n b e d e pl o y e d w i d el y
a c r o s s o r g a n i za t i o n s a t d i f f e r e nt l e v e l s .

W e a kn e s s e s

M a j or i t y o f mi d si ze b u s i n e s s e s a r e r e l yi n g o n t h e i r I T s e r v i c e
p r o v i d er s t o m a n a ge a n d d el i v e r B A s o l u t i o n s . M a y b e t o u g h f o r n ew
e n t r a nt s w i t h n o n - I T b a c k g r o u n d s .

37
BA need and awareness far outpaces dep loyment ability in many
medi um and eve n large organi zations. So despite hi gh aware ness of
BA value, bei ng mostl y used for narrow quantitat ive tasks with
traditional tools such as spreadsheets and dash boards.

Lack of skills in organi zations to de ploy and use a dvan ced BA t ool s
and solutions.

Some growt h sectors like education are either underfunded or very

fragmented which make them financi ally unvi able.

Threats

E st a b l i s h e d p l a y er s i n b ot h e st a bl i s h e d a n d e m e r g i n g v er t i c a l s f r om
both IT BPO background and management consulting backgrounds.

C o m p a ni e s o f t e n t e n d t o u s e t h ei r I T / B P O pr o v i d er s a s t h ei r
a n a l y t i c s p r o v i d er s , t h e r e f o r e t e c h n o l o g y p r o vi d e r s m a y h a v e m ar k e t
entry advantages.

L a r g e v e n d or s a n d s e r v i c e p l a y e r s t u r ni n g t h e i r a t t e n t i o n t o d o m e st i c
BA market and SMBs.

L a r g e B P O s ar e p ut t i n g o u t l o w c o st s ol u t i o n s t o c o m p e t e w i t h n i c h e
p l a ye r s .

Many niche play ers emerging in high growth verticals like retai l and
manufacturi ng.

Opportunity Anal ysis

38
 In addition to the SW OT analysi s, a f ew f actors need t o be borne in
mind f or a posit ioning strateg y:
1) A nal ysis of f i rm location i n the BA l andscap e (F ig. 11)
2) Anal ysis of firm potential f irm off erings (Fig 12.)
4) Growth of BA tools and of f eri ngs

Fig.12 .Locating a f irm in the B A servi ce soluti ons provi der landsca pe:
Fig 12.Firm Location Analysis

Multi-
domain Quad 1 Quad 2
Categories Categories
4, 5 1, 2, 3, 5

St art u p: As us e of B A
gro ws m or e s ophist ic a t ed
in large f ir ms a nd as
SM Bs use of BA inc re as e,
gro wt h pr e d ic t ed f or
bo ut ique f ir ms ,
spec ia li zin g in si ngle
do m ains or vert ic a ls , an d
f irms t h at can i nt e gr at e Quad. 4
do m ains / pr oc es s es wi t hi n Quad 3 Categories
a v ert ic al. Start up 5, 6, 7;
area; one Cat 3
Niche
Category
5, 6
Single
domain

Single Multi -
vertical vertical

39
 2. Locating a f irm in the BA soluti ons landscape
BA Usage in Firms by Tools and Applications

Advanced Analytical
Analytics Optimization Apps in
10% Indian
Predictive Modeling firms, but
many more
Simulations and Scenario Dev.
firms
Web/ Social, Other Unstructured data
primed for
Mining Analytics this range,
moving
Forecasting beyond
basics
Use in
Source:
20%
Ramco
Consolidated performance Indian
management firms
Source:
Ramco
Sys.
Performance reporting –
Where 70%
KPs/ Dashboards
Indian firms
are in their use
Ad-Hoc Query & Analysis of BA. Source:
Ramco Sys.
Basic General Statistics
Analytics

Single Domain/ Multi-Domains/

Process/ / Unit Processes/
Units

Reports indicate growth in mid- to high range

offerings for established and emerging verticals
esp. with consolidated performance management,
and analytical tools, as many user firms are at
the inflect ion point where they are ready to move
beyond basics. Expansion and profitability are
key concerns for firms and high awareness of BA
value likely to broaden receptivity to new
offerings. Among SMBs, basic infrastructure in
place, but high end offerings may be tough,
although consolidated / integrated basic offerings
may be possible.

40
Fig. 11, below, base d on vertical growt h projections an d servi ce
provider acti vit y in verticals, gives an opportunit y anal ysis o n the
entr y points f or new entrants.

Fig. 11 Opportunity Analysis by Vertical and Domain

Growth Status of
Verticals in Verticals
Indian Growth in
Domestic IT/ rate in IT Domestic
BPO Sector BPO IT/ BPO
(NASSCOM) spending Sector Opportunity Analysis by Vertical
Retail: 17.50% Emerging Crowded field with large dominant and niche players.
However, with the sector growth, can go in with
specialized high-end offerings to regional or local chains.
May be more open to non-IT-BPO background.
Predictive analytics, demand modeling, social media and
other unstructured data analytics.

IBM, HP, Cogniznat, Genapct, WNS, Mindtree, TCS,

Infosys, HCL, Manthan, Accenture, PWC, MCKinsey,
BMGI< MuSigma, Fractal, Boston Analytics.
Healthcare: 17.50% Emerging Although populated with dominant players from BPO
and consulting. Opportunities in mid-sized regional, local
chains, potential entry point with Customer Information
management crossed with insurance data and analytics.
CI offerings or sub-segments of customer analytics. May
be more open to non -ITl-BPO background. Opportunities
in mid-sized regional, local chains, potential entry point
with customer Information management crossed with
insurance data and analytics. CI offerings or sub-
segments of customer analytics. May be more open to
non -ITl-BPO background.

IBM, HP, Cogniznat, Genpact, WNS, TCS, Infosys

WIPRO, Accenture, PWC
Manufacturing: 12.70% Established Predicted high growth of sector esp. with expansion of
Indian manufacturers for the export and domestic market
SMBs, suppliers to larger manufacturers may provide
openings. Currently within manufacturing, CPG is critical
but more study needed to identify other sub-sectors e.g
automotive and suppliers to larger firms. Domains-
supply chain. OR, Procurement, inventory, sales, CSM.

Cap Gemini, Cognizant, Genpact, TCS, Infosys, HCL.

Ramco, Deloitte

41
Education: 17.50% Emerging Wide open where established players are concerned,
Has specialized niche players. Potential data offerings for
existing and new institutions around online offerings,
testing, smart cards. Possibly lower barriers to entry.
underfunding an issue.

BM, ValueNotes, other non-IT-BPO niche players

BFSI: 14.40% Established Crowded segment but openings still possible in many
specialized domains and sub- segments such as
nationalized banks insurance and SMBs in private equity
and investments, Customer analytics- online customer
expansion or web analytics; financial analysis and
valuations.

IBM, Cap Gemini, Cognizant, Genpact, WNS, TCS,

Infosys, Ramco, Accenture Analytics , PWC - DIAC,
BMGI, Deloitte, Mckinsey Knowledge Center,
Evalueserve, Customer Express, Market Equations

Telecom: 20.60% Established Can go in with high end specialized domain offerings, BA
through Mobile/ Hand held will offer a huge opportunities.
But entry barriers may be there as typically large firms IT-
BPO preferred.

IBM, Cap Gemini, HP, WNS, TCS, WIPRO Tech

Mahindra, PWC< Deloitte, McKinsey, BMGI, Boston
Analytics, Market Equations, Abacus.

Government: 17.50% Emerging Depends too much on local political scenarios and
budgets. Also for large projects big firm capacity may be
required.

IBM, Cap Gemini, Ramco

42
Energy & 12.40% Established Low. Typically large providers, may be hard to break in.
Utilities: Need to know where decisions are made. If local utilities,
are possible Eg. CESC. There may be entry points
through customer analytics, sales and billing, and fraud
detection.

Cap Gemini, HP, Genpact, Cognizant, HCL. Ramco,

Accenture, Deloitte, Deloitte, Boston Analytics

Pharma & Life Established Although not an official growth sector and more study is
Sciences needed, Pharma has heavy use of analytics and the
Indian market may be underserved. Large players have
offerings in this sector but cater to international pharma
clients. Indian pharma seems to be underserved or may
have captive providers.

IBM, HCL, WIPRO<, Accenture,,Deloit, tMcKiney, BMGI.

MuSigma, Absolut, pHarma,rc, Abacus, Market
Equations, Valuenotes

Outside of high growth verticals directl y l ocated within the IT-BPO

sphere, ther e are ot her verticals f or consideration, t hou gh the y re quire
m ore study f or their potenti al f or anal ytic s. These include: Pharma,
Travel and Transport ation, T ravel, Construction and Real Estate

In order to arrive at the opp ortunit y anal ysis, verticals can be be

ranked on m ult iple dimensions:
 Proj ected Growt h (high to low)
 SMB growt h: Pointing to openi ngs f or smal ler players (three
highest)
 Bus y-n ess: Services Provider Activit y, how ope n or cro wded i s
the spac e ( l ow – hig h), the l ess crowd ed t he bett er
 Openness: Diff erence in firm back grounds, whether th ere are
non-BPO/IT providers (easier f or non-IT/BPO pla yers to enter )
 Readiness f or hi gher end off erings (hi gh – lo w)

43
 Ra nk in g of V ert ic a ls o n M ult iple D ime ns ions
Rank Hig h Gro wt h in Bus y- ness : Openn ess : Re adin es s f or
gro wt h SM Bs Pr ov id er Dif f er enc e in h igh er
v ert ic a ls Ac t iv it y f irm Valu e of f er in gs
Low-H igh bac k gr ounds .
Var ied t o s ingle
1 BF SI Phar m a Ret ail BF SI

Telecom
2 Ma nuf ac . Educ at io n BF SI Te lec o m
Healthcare
3 He alt hc ar e Gov ern ment He alt hc are Man uf ac t ur ing
Govt.
4 Ret ai l He alt hc are Gov ernm ent Ret ai l
Retail
Ma nuf ac Man uf ac . Phar m a*
He alt hc are
Education
5 Ret a il Ener g y & Ener g y &
Ut il it ies Ut i lit i es
BFSI
6 Ener gy & Educ at ion Gov ernm ent
Ut i lit ies
Manufac.
7 Energy & T elec om Phar m a* Educ at io n
Utilities:
8 BF SI Te lec o m *
Pharma*
Phar m a* Gro wt h rat e w it h in I T/ B PO u nk n own

U si n g t h e a b o v e a nd l o ok i n g a t t h e f o ur d i m e n si o n s i n t h e B A
e n v i r o nm e nt – v e r t i ca l s , d om a i n s, a p p l i c a t i o n s a n d f u n ct i o n al i t y – i t
i s p os s i bl e t o a r r i v e a t a a n ( u n r a nk e d ) p o t e n t i a l o p p o rt u ni t y c h a r t .
W h i l e c er t a i n d om ai n s a r e m e nt i o n e d h e r e , a n y o f t h e i d e nt i f i e d
v e r t i c a l s c an b e c r os s m a p p e d wi t h t h e g r o wt h d o m a i n s l i s t e d o n
p a g e 2 2 u n d e r K e y D om ai n s. O t h e r f a c t o r s l i k e r e g u l a t o r y
e n v i r o nm e nt s , d e ci s i o n m ak i n g u ni t s , o ve r a l l u s e of B P O , o r s p e ci a l
c h a l l e ng e s i n f u n di ng o r v u l n er a bi l i t y t o p o l i t i c a l a n d f i s c al
s c e n a r i os , m us t a l s o f i n a l l y f a ct o r e d i n , a s m u st t h e t e c h n o l o g i c a l
e x p e r t i s e a n d b a c k g r o u n d o f t h e t e am b u t t h e f o l l o wi n g t a b l e

44
 p r o v i d e s a p r e l i m i n a r y a n a l ys i s o f o p p o r t u n i t y b y v e r t i c a l , do m a i n,
f u n c t i o n a l i t y a n d t oo l s a n d p r o d u c t .

Potential Opportunity Chart

Verticals Domains
BFSI – sub-sectors -
nationalized banks, C u s t o m e r a n a l yt i c s , f r a u d a n d r i s k , F i n a n c i a l
insurance, private equity analysis and evaluations
and investment firms
Healthcare
Customer information management; inventory
and supply chain, financial analyt ics

Manufacturing (more stud

needed of sub segment) Modeling, procurement, customer analytics

Retail C u s t o m e r a n a l yt i c s – c u s t o m e r l o y a l t y, o n l i n e
c u s t o m e r e x p a n s i o n o r w e b a n a l yt i c s ; s o c i a l
media analytics
Cross segmenting: Insurance and customer management for
Healthcare and BFSI healthcare clients
Cross segmenting: M o b i l e b a n k i n g c u s t om e r s e r v i c e
Telecom and BFSI
O ut s i d e I T / B P O G r o w t h Pharma, Travel and Hospitalit y
Verticals

Tool s and products Functionalities

1. Consolidated, 1 . I nt e g r a t i o n a n d s t r e a m l i n i n g a c r o s s
streamlined performance processes &/ o units
management
2. Predictive analytics 2. Self service, mass use platforms

3. W eb social media 3 . P a c k a g e d , p l a t f o r m s f r o m SW l i c e n s i n g t o
unstructured data design to maintenance
analytics
4. Mas t er dat a so lut io ns

****

45
 ANNEXURE ( Aug 9, 2012)

Recommendations for QRIS Analytics for market entry and positioning

I. Key demand side factors in the Indian BA solutions market that can help determine
potential entry points and positioning for QRIS Analytics.

1. The need for improved BA solutions that enhance profitability and growth in a
high cost pressure competitive environment in key verticals such as BFSI,
retail, manufacturing, telecom; i.e., solutions that mitigate loss, fraud, leaks,
failure; and or provide process / product / service optimization.

2. The need for integrated BA solutions across processes and units for data
optimization, enabling better decision making.

Reports indicate that since a substantial number of firms already use some form of
basic BA, they may be poised to move to the next level of BA competence either
through integration of existing BA projects or improved BA techniques that build
on existing BA investments to generate greater ROIs, to meet 1 and 2 above.

Even though the key verticals may be the most crowded with respect to providers
(including an increasing number of boutique entrants), these verticals are also
likely to have to the BA infrastructure and data culture to move on to new or
integrated solutions.

3. In a high cost pressure environment, many firms may be more likely to focus
on getting better returns on their BA investments, and solutions that build on
existing BA investments rather than invest in major new BA solutions and
products. So, likely interest in solutions where BA performance and ROI can
be demonstrably enhanced.

4. Further, with a large number of boutique players entering the field, it will be
important to differentiate with higher-end products that offer improvements in
BA systems in use.

5. The location mapping of BA providers indicates that most medium-large

providers are providing multi-vertical or multi-domain, (where vertical
=sector, and domain = business process) or multi-domain and multi-vertical
services. This is likely the result of client (end-user) demand in which firms are
looking to harness data solutions in different aspects of the enterprise’s

46
 activities to drive improved performance and competitive advantages through
continued expansion and deployment of BA. Therefore cross domain
expansion and integration of BA is likely to be in demand.

6. With regard to integration, many firms are constrained by the lack of integrated
domain and data expertise capacity to effectively deploy and leverage BA
solutions. BA solutions that include addressing end users’ BA capacity issues
should also be considered.

II.: QRIS Analytics’ stated expertise (re: discussion of Aug 6, 2012):

1. Deep cross-domain expertise that can improve and enhance ROI from
BA across verticals.
2. Enterprise level (as opposed to process level) BA expertise.

Coupling demand and QA expertise, the following positioning possibilities are

suggested:

QRIS Offerings Target Demand side needs that are Demand side
clients met conditions reqd.
Cross-sectoral Analytics Enhanced profitability and More likely firms in
BA performance providers and growth in a high cost pressure BFSI, and large
improvement / End users environment: vis a vis ; manufacturing, with
BA Optimization solutions that mitigate loss, significant pre-
techniques and fraud, leaks, failure; and or existing BA
solutions. provide process / product / investments and data
service optimization. culture.
Due to a high cost pressure
environment, many firms may
be more likely to focus on BA
solutions that build on existing
BA investments than invest in
major new BA techniques and
tools.
BA synthesis / End users Synthesis / Integration of BA Pre-existing data
integration solutions and usage across culture, and BA
and processes, units and divisions infrastructure;
BA Strategic (moving from the 70% to the However, this may
Decision making 20% zone.) i.e. for data require significant
tools performance optimization, and capacity on the

47
 strategic decision-making. provider side as well.

Capacity building End users Better deployment of BA End users where

for end user and solutions and tools through Data culture exists
clients Analytics end user / client capacity but is sub optimal.
providers building, i.e. easier to use Second tier firms in
products and solutions for key verticals.
easier and wider deployment, However, this may
quicker and better decision require significant
making. capacity on the
provider side as well.

Potential QRIS Analytics positioning:

Improved BA processes and techniques + cross domain synthesis for strategic decision
making = Better ROI on BA infrastructure.

48