Govt demand to fuel business intelligence market: Study

Written by Nikita Upadhyay | Nikita Upadhyay | Shruti Ambavat | Mumbai | Updated: Apr 26 2011, 08:07am hrs
With newer verticals including manufacturing, retail and oil & gas adopting business intelligence (BI) solutions, the BI market in India is slated to grow close to 16% in 2011. Telecom and banking financial services and insurance (BFSI) sectors have traditionally been aggressive in data analytics field in India.

However, with government agencies looking to analyse humongous amount of data and companies planning shorter product and service life cycles to brace up to competition, the segment is looking for new growth.

Gartner predicts the BI market in India to reach revenues of $65.4 million (R294 crore) in 2011. Worldwide, the BI market is expected to post revenues of about $10 billion in calendar year 2011.

Government-controlled public enterprises have now started using data analysis for driving business prospects. Bodies like the municipalities require data analysis services for fund allocation and consumption, says Maneesh Sharma, head-business analytics and technology, SAP India. SAP is a worldwide market leader in BI solutions with a share of about 22%, According to Gartner, BI promotes revenue growth and faster innovation through shorter product and service life cycles as these solutions have the ability to find where value is being created in the business. With ease of use now surpassing functionality, influential business users are increasingly driving BI purchasing decisions, most often choosing easier to use data discovery tools over traditional BI platforms with or without ITs consent, said Bhavish Sood, research director at Gartner.

Government agencies deal with huge amount of data, in various sectors such as health and education, and with these opening to BI, the market looks promising. BI and analytics help government agencies to better understand, use and protect their data. The government also gains in terms of increased efficiencies in tax collection, combating fraud and maximising public services for their citizens. By way of an example, the UID project of the Government of India is in the process of creating large amount of data. Once the data is created, there will be the need of analysis of the data. Here, business intelligence and analytics has a major role, said Sudipta Sen, CEO &MD, SAS India.

Jeanne Harris, senior executive, Accenture Institute for High Performance, Chicago, said that the decision making in India historically has been based on either gut feelings or on the business experience of managers. Indian companies are on the curve and are already using analytics for a data driven decision making. Accenture is working with companies within the financial services, FMCG, telecom and retail space to help companies adhere to this new management discipline. Companies with young management teams are forthcoming in using these solutions, she added.