CIOs will increasingly draw on BI, analytics outsourcing firms to help deliver timely business insights to users, says U.K. technology research firm.
In 2013, we will see a steep rise in outsourced data analytics services as CIOs seek help in providing timely, decision-supporting insights to business users.
This is the conclusion of U.K.-based technology market research firm Pringle & Company in an extensive new report, “Business Intelligence Software & Services Market, 2012-2016.”
The research, conducted in the fourth quarter of 2012, suggests that the market for services provided by business and technology consultancies to develop and implement the systems required to generate data insights, is growing at a compound annual rate of more than 15%. The global market for these services will almost double over the next four years, from an estimated $54.5 billion in 2012 to $96.9 billion in 2016, according to the Pringle & Company report.
The overall business intelligence and analytics market, made up of both software and services, was worth $79 billion in 2012, and will now grow at a rate of approximately 16% annually to reach $143.3 billion in 2016.
1.How we spend
2.How we vote
3.How we study
4.How we stay healthy
5.How we keep (or lose) our privacy
We all know the power of the killer app. Over the years, groundbreaking systems from companies such as American Airlines (electronic reservations), Otis Elevator (predictive maintenance), and American Hospital Supply (online ordering) have dramatically boosted their creators’ revenues and reputations. These heralded and coveted applications amassed and applied data in ways that upended customer expectations and optimized operations to unprecedented degrees. They transformed technology from a supporting tool into a strategic weapon.
Companies questing for killer apps generally focus all their firepower on the one area that promises to create the greatest competitive advantage. But a new breed of company is upping the stakes. Organizations such as Amazon, Harrah’s, Capital One, and the Boston Red Sox have dominated their fields by deploying industrial-strength analytics across a wide variety of activities. In essence, they are transforming their organizations into armies of killer apps and crunching their way to victory.
There are a number of technologies and trends expected to impact the IT landscape in 2013, especially the use of big data analytics. Companies that can manage and study the information in their systems can benefit from offering customers more personalized advertising or identifying trends to help the corporate decision-making process.
Virtualization Review’s Elias Khnaser recently predicted what he expects will take place this year regarding the evolution of big data. Although large companies with vast resources are often at the forefront of technological innovation, smaller businesses can also take full advantage.
“I’m a huge believer in big data analytics – it will change the world and the way we do things,” Khnaser wrote. “I think 2013 will amplify the tools and capabilities to use big data analytics in an easier and more streamlined approach, where small and large business will be able to benefit from it.”
Although it is apparent that big data is helpful for companies of all sizes, large firms especially believe that the IT trend is crucial for future success.