In recent years, the Indian business environment has witnessed massive reforms driven by the proliferation of hybrid work environments and stiffening competition. These developments have also had major effects on the country’s research and analytics solutions industry. While the sector has reported steady growth in the last 5 years, the demand for such solutions skyrocketed in more recent years.
Excerpts of an interaction done with Ashish Gupta, the Co-founder and CEO of Benori Knowledge, about the state of the research and analytics solutions industry are shared below.
“Only in 2021, the data analytics industry grew 27% YoY and is expected to become a USD 40bn market by the end of 2022. In concert, the market research industry grew significantly, and is expected to become a USD 4bn market in itself by 2026. This remarkable growth has been supported by a mix of intersecting forces:
- Increased business expenditure on data analytics, by approximately USD 2 bn
- Availability of advanced data solutions driven by AI-enabled reporting, business intelligence, and dashboards
- Talent upskilling to meet the evolving on-the-job requirements and a 30% YoY increase in analytics and data science jobs in FY2022”
India has recently emerged as the “KPO capital of the world,” becoming a global hub for outsourced research, data solutions and market intelligence. With a flourishing ecosystem, buttressed by boutique research firms and large consulting organisations (the Big 4 and other management consulting firms), India’s research and analytics industry is perfectly poised to meet the heightened demands and grow steadfastly.
“Home to over 75,000 recognized startups that are expected to raise USD 33bn and USD 35bn in 2022 and 2023 respectively, India’s growing business climate aided by a large influx of VC funding makes it imperative for organisations to efficiently manage enormous amounts of qualitative and quantitative data. The management of the entire decision life cycle has become reliant on accurate data on competitors, macro and micro business environments, accelerated by two key impacts of COVID-19—digital transformation and new, emerging business models.”
While the potential to benefit from market research and data analytics is vast for all sectors, for certain sectors it is paramount to deploy data-based approaches to function. Commenting on the use cases for research and analytics in the Indian business environment, Ashish Gupta revealed that the following are the industries that have continued to tap into the power of data:
“The FinTech industry received a cumulative funding of USD 19bn in the last two years, creating 22 unicorns with a combined valuation of USD 68bn. With such large investments, organisations find it pertinent to use market research and data analytics to minimise fraud risk, intelligently manage large datasets of customer persona, payments and credit allocation (BNPL), and algorithm-driven automated trading.
HealthTech continues to leverage data analytics for processing patient data, analysing medical imagery, managing remote critical care and monitoring patient health.
Retail and CPG also utilises marketing research and data analytics for tracking competitors, studying demographic data, analysing new markets and trends for product launches, and more.”
Although the growth of the industry is promising, it still continues to face the same security and talent acquisition challenges experienced by the majority of India Inc:
“Quality data management is a difficult outcome for companies in this sector to achieve. Working with large volumes of data in the digital age brings along its own terms and conditions, that includes efficient data management, timely and regulated access of data, data integrity and end-to-end implementation of a data governance system, that together may not always be feasible for some boutique research firms.
In the absence of stringent data privacy laws and periodic data leakages, consumers don’t feel comfortable in revealing their true experiences and habits that in-turn makes it challenging for firms to derive meaningful insights from primary research data, retrieved first-hand.
When it comes to talent, the opportunities of upskilling and booming data analytics job market has made retention of skilled employees challenging. Plus, the rising competition and demand to deliver makes the situation equally prosperous and threatening for organisations.”
With the market research and data analytics industry already standing on firm ground, the outlook for 2023 appears promising, and Ashish Gupta revealed that the following aspects may be the game changers:
“In the age of business automation, AI-driven research firms that offer holistic solutions to new market research problems will serve as a one-stop-shop for data-reliant organisations.
Coming to the war for upskilled talent, with firms such as KPMG announcing to hire 20,000+ employees in the coming years, workforce expansion in the industry can be expected to be bullish and fiercely competitive.
Emerging business models, launch of new technologies and shifts in business focus, including the launch of 5G, Metaverse applications and ESG awareness, will generate even more data through new business functions, further upping the demand for market intelligence to make more informed decisions.”
Benori Knowledge is a global provider of custom research and analytics solutions across industries, including consumer & retail, internet e-commerce, financial services, healthcare and education among others. Benori delivers significant insights that help simplify decision-making for key stakeholders in their clients’ business.