Data Analytics Outsourcing

Companies have been collecting huge volume of business data for several years. The growth of Internet accelerated the data collection trends as businesses started offering their services over World Wide Web. For example,Retail companies collect customer credit card usage, purchasing data, etc. Telecommunication companies collect customer-calling data, payment data etc. Web companies collect customer's click-stream data with the enormous amount of data companies need quickly and effectively use the data to identify customer behavior. Data analysis helps companies quickly analyze the data to identify hidden trends in customer behavior and capture key trends that can be used in strategic planning and operational initiatives. Analyzing large volume of data, identifying business trends and future forecasts are often considered as strategic projects for companies and they have been keeping it in-house. However, with the rise of KPO companies are started outsourcing data analytics work to offshore locations like India, Philippians, and China. By identifying key parameters and well-defined policies for data analysis, the level of risk in data analytics outsourcing to offshore locations is minimized.
Following are some of the vertical businesses where data analytics outsourcing have been extensively used.

Credit risk analysis
Banks and other financial institutions started using offshore vendors to perform credit risk analysis on their customer data. Based on their client requirements, financial and statistical professional at the offshore locations create mathematical models to identify potential risk factors in sanctioning loans or credit cards to customers. Using the mathematical models, equations can be formulated to identify high risk and low risk customers in risk analysis.

Supply chain analysis
Logistics and manufacturing companies use supply chain analysis in optimizing Supply Chain Management (SCM). In SCM, various processes of moving goods starting from customer order through the raw materials stage, supply, production, and finally distribution the products to the customer. With the advance of global sourcing companies started extending the supply chain to include global suppliers, partners and other interested parties around the world. So it becomes necessary for companies to outsource portion of their supply chain management to their captive centers in offshore locations like India and China.

Pharmaceutical analysis
Data analytics outsourcing in Parma industry has been growing for several years. Companies like Icon clinical research, Quintiles Transnational, Acunova, etc, have created clinical data management infrastructure in India to provide various data analytics solutions to drug companies in US to reduce drug discovery and approval time. There are also niche players started emerging in pharmacy data analytics market, Marketrx(acquired by cognizant) specializes in marketing and sales analysis in pharmaceutical industry, their custom build data analysis solutions helps drug companies in enhancing sales and marketing processes.

Data analysis outsourcing Trends
Sensing the KPO trends and to leverage the availability of skilled workforce in India, companies like Citibank, American Express, Prudential Insurance are outsourcing several parts of their data analysis work to their captive centers in India. Genpact (formerly known as GECIS) started by GE Capital has been doing data analysis work since 1997. Genpact started working with simple business processes like customer demographic changes in the beginning, due to the cost saving and quality of work Genpact started getting more complex analytics work like credit risk analysis, business opportunity assessment, etc. In addition to captive centers, there are also independent data analytics service providers like iGATE, EvalueServe, Fairisaac, OfficeTiger, Exlservice, etc, are providing various data analytics outsourcing services to their clients. Sensing the opportunities in data analytics outsourcing Indian based software majors TCS , InfoSys, Wipro, and Satyam have started offering various data analytics work to their clients.

Summary
The availability of skilled work force is a critical factor for the data analysis outsources providers in providing higher-value data analysis services. With the vast talent pool of quality workforce both India and China will be huge players in the data analysis outsource market.