Indian Analytics Market: Strategic Analysis

Posted in Marketing & Strategy Articles, Total Reads: 2825 , Published on 18 November 2013

In the last 10 years, the Indian analytic market has grown from offering simple analytics to complex value added analytics across the spectrum of industries. From sale analytics, market analytics, market research, customer analytics to high end risk analytics, the Indian market offers all the services, thus, creating a vibrant talent pool and expertise in deploying solutions across the world. Today, these services are provided by third-party solution providers (e.g. Mu sigma, Fractal analytics, Absolute Data etc.) to in-house analytics division of Wipro, HP, IBM, Infosys to name a few. This section uses the strategic framework developed by Hambrick and Fredrickson in their paper titled “Are you sure you have a Strategy?” published in 2005 in Academy of Management Executive[1]. The framework is used to analyze the current Indian analytics market. Though this was developed to analyze one’s firm vis-à-vis its competitors, an attempt is made to extend this framework to analyze an industry.

image:David Castillo Dominici,


The presence of multinational companies (MNCs) across banking, telecom, consulting sectors has provided a breeding ground for third party service provider as well as development of captive analytics centers like Airtel, ICICI. Niche analytic firms have also emerged over the last decade with expertise in an industry vertical. Their target customers are mainly clients in US, Europe where the analytics is huge market. But the downturn has focused many of these firms to utilize in built capability to drive growth by providing value added services to firms, clients in South Asia.


Major social networking companies notably Facebook, Google, Twitter have made acquisitions of analytic service provider. With the popular Google analytics, Facebook acquisition of Gowallato Twitter acquisition of analytics team Hotspots. Companies world over are increasingly going after analytic solutions or solution provider to increaser their returns on investment. Further home Wipro acquired an Australian analytics firm Promax Applications Group (PAG). But Indian particularly cities like Gurgaon, Delhi, Bangalore, Hyderabad have seen a spurt in start-ups offering analytic services. Since it is still in a nascent stage, this sector in India will predominantly be in-house driven or start-up offering such services in niche segments like customer analytics, risk analytics.


The analytics industry has seen mushrooming of analytic solution providers. The industry will continue be driven by such startups before consolidation begins. For Big IT firms like TCS, Wipro, Infosys to acquire these start-up will take time as though industry revenue grow, they will have to figure out their piece of cake in the analytic industry and march their resources to maintain a presence in this sector- “It is a strategic call”. Till then start-ups will continue to grow and dominate this segment.


This has been a success story so far. But for start ups to continue to hold sway over the off-shoring of contracts and prevent themselves from being gobbled by companies like IBM, Infosys they must invest in process development to ensure timely delivery of quality solutions. This can be aided by best of breed solutions and talent (which India has). The strong analytical capability of Indian is known world over and this can be harnessed to maintain our competitive advantage of both in-house divisions and start-ups alike.

Economic Logic:

So far the Indian IT industry has used the cheap skilled labor force to drive down costs. But doing so in the analytics industry may prove to be harmful in the long run. To derive scale advantages it would be necessary to have a large qualified supply of data scientists which are only beginning to get trained in analytic techniques. Therefore, impetus is on the startups and in-house divisions to offer customized solutions using proprietary techniques to command premium prices. The product reliability has to be best in class to gain customer confidence and retain contracts over a period of time.

The article has been authored by Mudit Gupta, Institute of Management, Nirma University


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