The National Association of Software and Services Companies (NASSCOM), India’s biggest IT and BPO industry body, has identified ‘marketing analytics’ as a core growth area for the industry.
According to a report released by the association today, the industry is expected to grow at an average of 25% every year till 2020 to reach $1.2 billion. It is at present estimated at $200 million (Rs 1000 crore).
Analytics refers to crunching numbers and data to extract intelligence. Such data may include consumer behaviour, sales data, lead data, consumption and raw material data etc.. The data is then ‘analysed’ using powerful computers and patterns are discerned.
These lessons are used by the company to increase its marketing and sales efficiency and customer service.
Most of today’s top analytics software and services are offered by foreign companies. However, Indian IT companies also have modest analytics offerings, with some even specializing in business analytics. Due to their relatively strong presence in the business process outsourcing (BPO) and IT fields, Indian companies have a natural advantage in pushing their own analytics offerings.
“The marketing analytics industry is poised for exponential growth and India will be one of the foremost forces leading this revolution,” Nasscom said.
“As we spoke with clients and thought leaders in the US and Europe, it became apparent that India has a leadership position and is well ahead of the curve in marketing analytics,” said Anil Kaul, CEO, AbsolutData. “Given that the industry is abuzz with Big Data, this report gains additional importance, since Marketing is one of the first functions to adopt big data into its daily functioning.”
However, Nasscom’s report pointed out that the current approach to analytics needs to change.
“The current talent pool which mainly consists of mathematicians/statisticians, have little insight into the consumer mindset required to personalize analytics. In addition to other skills like domain and consulting knowledge, players would also need additional skills, primarily consisting of computer science and psychology graduates. These will complement the requirements of data-mining and understanding the in-depth behavior of individuals and incorporate them into analytical models and tailoring solutions that cater to individual needs/preferences,” the report, co-created with AbsolutData Research and Analytics, said.
“The present marketing analytics domain is extremely complex and fragmented. The call of the hour is to consolidate analytical services and products under one roof and offer “one stop shop” to the clients, which in-turn would eventually lead to a highly competitive environment amongst similar sized companies,” the report added.”