2/3 of Companies Prefer to Keep Analytics Inhouse via Shared Services

"Two-thirds of global analytics jobs are in inhouse centers, and are igrowing at a rate of 15-20% per year." Analytics is a hot topic in global services circles because of its potential to create significant value for the organizations. The ever-increasing use of Internet, mobile, and social media creates huge amounts of data. On top of that, as technology advances, organizations have access to affordable and efficient data storage and processing systems that can capture and process colossal amounts of data. These advances, when combined with people’s expertise, can deliver vital insights for the growth of organizational growth and outcomes. As a result, organizations are increasingly leveraging analytics for a wide variety of purposes, from new product launches to supply-chain optimization, and every stop in between. Keeping it in-house Many organizations have built dedicated teams in their inhouse SSCs to deliver analytics services. Research indicates that, despite significant growth in service provider capability and maturity, organizations have a strong preference to leverage inhouse centers for analytics work. Approximately two-thirds of the 45,000 to 50,000-FTE global analytics headcount is in inhouse centers, and analytics headcount in these SSCs has grown at a rate of 15-20% per year since 2011. There are a number of reasons for this preference (which runs counter to other business process functions) to keep analytics in-house: Analytics work is considered "core" and part of internal IP/domain There is a necessity for tighter integration and control with business units/owners Regulatory constraints can impact the scale and scope of outsourced work While inhouse shared services continue to support different types of analytics work, there is an accelerating shift towards work that contributes to top-line growth / revenue impact. Other common analytics processes focus on cost reduction and risk management, and market intelligence and reporting. [inlinead] What does the future hold? With the successful adoption of the shared services model across a variety of industries, the trend is expected to continue, resulting in ongoing growth of analytics in shared services. Furthermore, Everest Group anticipates that in addition to scaling up, the analytics industry as a whole will move up the value chain as the share of predictive and prescriptive analytics grows. The following are forward-looking key trends for analytics growth in shared services: Move towards increasing scope of analytics work supported by shared services Consolidation of analytics as shared services within SSOs, with common reporting and governance structures Leverage of additional information sources and exploration of new talent models to build new analytics capabilities within shared services [click to enlarge] Note: Everest Group’s report, Analytics in Global In-house Centers (GICs): Running Deep and Wide, offers a detailed analysis of the inhouse shared services analytics market. [Note: if you liked this article, please use the buttons on the left side of the screen to share it across your LinkedIn groups – and contribute to this discussion by posting your thoughts in the comment section, below. It does require a [annoying, I know] registration with Disqus but it is one-time only and actually quite useful! Thank you for being part of SSON's community - Barbara Hodge]

2/3 of Companies Prefer to Keep Analytics Inhouse via Shared Services

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