Analytics and Data Science India Industry Study 2020 Sector Revenue Breakdown

ANALYTICS AND DATA SCIENCE
INDIA INDUSTRY STUDY
2020
The 6th edition of the annual study
of the analytics industry in India

By Analytics India Magazine & AnalytixLabsAnalytics and Data Science India Industry Study – 2020
2 3
EXECUTIVE
SUMMARY
The Indian Analytics domain has
undergone significant development
over the last year, and more so ever
since AIM began researching and
studying the domain 6 years ago. In
the latest edition of the Indian analyt-
ics study, AIM Research, in association
with AnalytixLabs, provides insights
on the overall analytics domain and
the state of analytics across sectors
and enterprises. The report, now in its
sixth year, analyzes the direction in
which the analytics market is headed.
The analytics capability is no longer
restricted to the MNC and Domestic
IT companies and captive units of
Banking firms. The broader Data
Science domain has transformed
beyond just supporting business
functions Analytics has now emerged
as a necessary capability across or-
ganizations, with organizations de-
veloping Data Science capabilities
that transcend the entire business
model and operation value chain of
the firms. Analytics is no longer the
purview of marketing, IT, and data
rich firms. Firms across sectors and
types, including Industrial and FMCG
companies, are increasingly adopting
analytics and investing both capital
and operational resources in the Data
Science domain in order to gain a
competitive edge in the market.
Finally, analytics is enabling numer-
ous predictive and prescriptive capa-
bilities across organizations – these
include recommendation and pre-
dictive modelling driven Artificial In-
telligence (AI) and Machine Learning
(ML).

4 5
CONTENTS Overview
Key Highlights
Sector-wise Revenue
Distribution
City-wise Revenue
Distribution
Geography-wise Revenue
Distribution
Company Size and Employee
Distribution
Demographics of Analytics
Professionals in India
Market Projections
Conclusion
06
10
12
16
20
22
30
32
18

6 7
OVERVIEW
As covered in our reports regarding
the development of the data science
domain in India, it is evident that
the broad data science domain and
specifically the analytics function has
experienced significant growth over
the last year itself. The growth in sala-
ries across almost all parameters, the
maturing of the analytics market in
terms of experienced hiring and
salaries offered, the significance
of gender diversity in the Indian
analytics function, and the $762 Mn
investment in Indian AI and analyt-
ics start-ups, are self-explanatory in
terms of the development and global
standing of the Indian Analytics mar-
ket. This development has facilitated
the increase in overall revenues of
the Indian analytics function to
$35.9 Bn. This signifies a growth of
19.5% in revenue year on year – last
year the analytics function garnered
$30 Bn in revenue.
The analytics function experienced
growth across almost all companies,
industry types, services rendered, and
geographies.

8 9
Scope and Methodology of
Report
The scope of the report covers the
revenues across those firms that
have analytics personnel based in
India, regardless of the geography
and/or the client the employees/
firms are servicing. The firms in-
clude Indian corporations, including
conglomerates and domestic IT firms,
MNCs (including technology firms),
Chip & Semiconductor, Communi-
cations & Media, Banking & Financial
(Public Sector, Private Sector, and
Captives), Industrial, Mobile Payments
(Fintech), eCommerce, and Health-
care firms. The services encompass
analytics as a service, including cer-
tain niche Data Science domains
The source of the data in this report
includes all secondary public domain
information, including company web-
sites, annual reports, whitepapers,
marketing information, and press
releases.
Unlike last year, this year the report
covers consolidated revenues of the
analytics function. The domestic
focused and outsourced revenues
have not been presented separately.
This is in line with the financial
reporting of most Indian and Global
firms.

10 11
KEY HIGHLIGHTS
2019-2020
• As of March 2020, the analytics
function in India earned consoli-
dated revenues of $35.9 Bn - a
19.5% growth in revenue over last
year
• The revenues are reported for data
across industries, company types,
services, and segments
• Analytics services cover descriptive,
predictive, and prescriptive ana-
lytics, and include data reporting,
business intelligence, visualization,
and analysis
• The analytics domain accounted
for 19% of the total revenues of
the Indian IT and ITES market.
This proportion has fallen from
the 21% share last year. This fall
is due to the Digital services
segment experiencing very sig-
nificant revenue growth of ap-
proximately 25% y-o-y across
the IT / ITES sector – the share of
revenues from the digital domain
has significantly increased across
IT enterprises. The share of ana-
lytics will increase and rise to
about 30% of the IT industry by
2025. By then, the revenues of the
Indian IT & ITES industry would be
significantly driven by Digital and
Analytics services
• TCS continues to lead the reve-
nues across all enterprises (IT and
otherwise) for both MNC and Do-
mestic types, with $2.5 Bn in an-
alytics revenue, up 25% from $2.0
Bn last year
• The Banking, Financial Services,
and Insurance or BFSI sector con-
tributed approximately 10.7% of
the total revenue share – the total
revenues include the revenues of
IT firms. Excluding the revenues of
IT firms, the enterprises across the
BFSI sector contributed 35.6% of
revenues – the maximum revenue
contribution
• Bengaluru yet again led the way
for the largest share of revenues
(city-wise) at 29.4%
• 16% of the analytics revenues
across all enterprises are attributed
to advanced analytics, predictive
modelling, and data science, up
from 11% in 2018 – this highlights
the growing maturity andprogres-
sion of the Indian Data Science
domain

12 13
0%
5%
10%
15%
20%
25%
30%
35%
40%
BFSI - Captive
& Domestic
Marketing Ecommerce Pharma &
Healthcare-
Captive &
Domestic
Media &
Entertainment
FMCG
Goods
Telecom Energy &
Industrials
Revenue Distribution by Sector/Function (excluding IT & Consulting)
35.6%
27.7%
14.4%
8.5%
7.6% 7.6% 7.6%
5.9%
SECTION 1: SECTOR-WISE
DISTRIBUTION
This section covers the findings of
the sector-wise contribution in the
revenues of the analytics industry. The
IT sector remains the top contribu-
tor to the revenues of the analytics
function (Domestic and Outsourced
cumulative), providing 67.4% of all
the revenues combined. While the IT
sector was the largest contributor last
year, there are no comparable figures
as the numbers last year were seg-
regated on the basis of Outsourcing
and Domestic revenues. This year, as a
proportion of the overall revenues,
the Domestic IT companies have the
highest share of revenue of 35.7%
- these companies include Infosys,
HCL Tech, Tech Mahindra, Wipro, and
TCS - TCS leads the list of analytics
revenues for all enterprises at $2.5 Bn.
Domestic IT is followed by MNC IT
enterprises that have a revenue share
of 31.7% - these companies are led
by Accenture, Capgemini, Cognizant,
and IBM – Accenture is at the very top
of the list of MNC IT companies, and
comes second across all enterprises,
with $2.4 Bn in revenues from ana-
lytics services. The enterprises from
the BFSI sector contributed 10.7%
of the total revenue, highlighting the
continued investment in analytics
capability, personnel, and technology
in this sector. This figure covers the
BFSI Domestic and Captive revenues.
Sector-wise Distribution (Excluding
IT and Consulting Sectors)
When not considering the IT and
consulting sectors’ revenues, the BFSI
sector or function contributed 35.6%
of the analytics revenues. This is the
largest contribution excluding the
IT and Consulting sectors. The BFSI
sector is followed by Marketing, that

14 15
contributed 25.8% of the revenues.
Both Marketing analytics and adver-
tising analytics have contributed to
marketing revenue. While, the Media
sector contributes the maximum
revenues to Marketing, the Telecom
and FMCG sectors are also signifi-
cant contributors to this function.
Marketing is followed by the ecom-
merce sector that contributes 14.4%
of the revenues. As a comparison on
a year-on-year basis, the revenuecon-
tribution of BFSI has marginally de-
creased to 35.6% this year from 36%
last year. The revenue contribution of
Marketing has risen to 27.7% this year
from 25% last year. Revenue contri-
bution of ecommerce has marginally
decreased from 15% to 14.4%. This
marginal increase or decrease across
these 3 sectors or functions is largely
due to each of these sectors adopt-
ing analytics at an early stage of oper-
ations set-up. Enterprises across these
sectors are now leveraging these
legacy systems to create value for
their customers and derive revenue.
While there is no major significant
investment across these 3 sectors
in analytics, 3 major analytics capa-
bilities – descriptive, predictive, and
prescriptive are all utilized to identify
appropriate products and services for
the customers across each of these 3
sectors –
• BFSI sector: Analytics capabilities
are utilized to identify customers
across income segments, send tar-
geted communications to custom-
ers, and identify various financial
products across several customer
demographics. Moreover, the BFSI
sector continues to innovate in
niche analytic areas, which include
analytics / AI-driven customer
support, and ML-driven financial
advice.
• Marketing: Owing to the growth
of digital capabilities and digital
marketing across several sectors
including Media, FMCG, and Tele-
com marketing analytics is increas-
ingly leveraged for targeted adver-
tising and communications.
• Ecommerce: Because of great-
er competition for customer ac-
quisition and services across the
e-commerce sector, analytics is
increasingly adopted to create
customer value.
The Pharma sector, which includes
the Domestic and MNC captive phar-
ma companies, contributed $ 0.9
Bn in terms of revenues. While this
corresponds to a 8.5% share for all
companies (excluding IT and Consult-
ing), the growth that this sector has
experienced in this domain is
indicative of Domestic and MNC
Captive pharma companies lever-
aging advanced analytics, including
Artificial Intelligence (AI), in their core
operations of drug discovery.

16 17
0%
5%
10%
15%
20%
25%
30%
35%
Bengaluru Delhi NCR Mumbai Hyderabad Chennai
Analytics Adoption by City (%)
Pune
29.4%
28%
25.3%
25%
17.6% 18%
10.2% 9.2% 10.2% 9%
7.2%
9.3%
2020 2019
SECTION 2: CITY-WISE
DISTRIBUTION
Bengaluru continues to lead as the
centre of analytics – enterprises in this
city derived 29.4% of the revenues,
up from 28% last year. Bengaluru’s
reign as the analytics hub for MNC
and Domestic IT enterprises contin-
ues this year. Moreover, the city has
emerged has the hub of start-ups
after the significant investment made
in 2019 in start-up ventures. Benga-
luru is followed by Delhi that hosted
enterprises contributing 25.3% of the
revenue share this year as against
25% last year. As it was last year, so
this year Mumbai is in third place this
year with 17.6% of the contribution,
as against 18% last year. Nonetheless
the sector-location niche of Mumbai
continues to remain as many of the
analytics functions of the BFSI cap-
tives, Investment Banks, Domestic
consumer firms, and Consulting en-
terprises are based in this city. Hyder-
abad and Pune contribute 10.2% of
the of the analytics revenues, while
Chennai falls to the last position in
terms of revenues at 7.2%.

18 19
0%
10%
20%
30%
40%
50%
60%
USA UK Australia Canada Others
Revenue Share by Geography
Netherlands Germany
56.6%
9.7% 7.1%
18.6%
3.4% 2.4% 2.2%
SECTION 3: GLOBAL GEOGRAPHY
-WISE REVENUE DISTRIBUTION
While outsourced analytics revenues
were not reported by many MNC
and Domestic IT firms, the revenue
share by geography was determined
through other secondary research
sources, including whitepapers and
case studies. Moreover, these figures
are expressed as a proportion and not
in absolute dollar terms. The revenue
share of analytics services by geog-
raphy indicates services to the USA
garnered 56.6% of the revenue share,
up from 47% last year. The revenues
from UK focused services garnered
9.7% share – almost identical to last
year, when they were 9.6%. Revenues
from Australia comes in third at 7.1%
of the revenue share.

20 21
0%
5%
10%
15%
20%
25%
30%
35%
1-200 200-1000 1000-10000 10000+
Number of Employees by Company Size
40%
45%
30.1% 29%
10.4% 11.4%
19.7%
21.6%
40%
38%
2020 2019
SECTION 4: COMPANY SIZE
AND EMPLOYEE DISTRIBUTION
The distribution of employees by the
percentage or number of companies
in a given employee size bracket in-
dicates a concentration of personnel
across 2 main categories - the start-
up or niche analytics category (1-200
employees) and the large-scale en-
terprise category (10000+ employees).
A greater percentage of employees
are joining enterprises that provide
stand-alone analytics-as-a-service
to their clients. This includes Indi-
an startups and enterprises that are
approaching unicorn status (unicorns
- privately held startup enterprises
that are valued more than $1 Bn).
30% of the employee are working
for enterprises with 1-200 personnel,
rising from 29% last year. The major-
ity of the employees are working for
enterprises in the category 10000+
employee category. This figure has
risen to 40% this year from 38%
last year.

22 23
0%
5%
10%
15%
20%
25%
30%
35%
Less than
1 year
1-2 years 2-5 years 5-7 years 10-15 years
Distribution by Experience Level
7-10 years More than
15 years
4.6%
7.3%
28.9%
19.0%
16.9%
15.6%
7.6%
SECTION 5: DEMOGRAPHICS OF
ANALYTICS PROFESSIONALS IN
INDIA
The median work experience of ana-
lytics professionals in India has come
down significantly from 8 years last
year to 7.5 years this year. This was
a result of 25,500 freshers added to
the analyticsindustry in 2019-20, as
against 22,000 freshers added to the
analytics workforce last year.
Moreover, almost 41% of analytics
professionals in India have work
experience less than 5 years, up
from 37% last year. Hence, the medi-
an work experience of analytics pro-
fessionals has fallen to 7.5 years this
year. This signifies the greater attrac-
tion of the analytics domain to the IT
workforce, who are choosing analytics
over other IT professions / functions.
Nonetheless, this does not imply that
experienced people are not joining
the analytics workforce from other
domains. Experienced professionals
with more than 10 years of work
experience constitute 23.2% of the
analytics workforce, many joining
from sector specific domains includ-
ing FMCG, Telecom, and Industrials.
Moreover, while the experience data
signifies a younger workforce, the
salary data (link to be added) signifies
a workforce moving up the ladder of
capability - analytics roles of greater
impact are increasingly offered to In-
dian professionals – the median salary
of analytics professionals is Rs. 14.4
Lakhs.

24 25
0
1
2
3
4
5
6
7
Mumbai Bengaluru Chennai Hyderabad
City-wise Median Experience (in years)
8
9
Delhi NCR Pune
8.1
7.5 7.3 7.2 7.1 7.0
Moreover, the city-wise median ex-
perience data reveals Mumbai has
the highest level of median employee
experience– this is typical of the sec-
tor-location niche. A majority of Do-
mestic Banks, Consulting Firms, MNC
Banks and Investment firms’ have
their analytics operations based out
of Mumbai as these operations serve
as a natural extension of the core
financial and consulting businesses.
Moreover, many Domestic conglom-
erates, such as Reliance, Godrej, and
the Tata Group have their head of-
fices and analytics centres based in
Mumbai as well. Hence, the average
experience of analytics employees of
Mumbai is automatically pushed to
the uppermost level at 8.1 years. The
median experience of Bengaluru is
placed 2nd at 7.5 years. Numerous
niche Analytics firms, start-ups, and
MNC & Domestic IT firms have their
operations centres in Bengaluru. This
has resulted in personnel with
considerable experience managing
the analytics functions for global and
local clients – and has pushed the
average experience of Bengaluru to
the 2nd spot.

26 27
Women in Analytics
The participation of women in Ana-
lytics at 27.8%, which is higher than
the participation recorded last year
at 26%. This is the highest the partici-
pation proportion has been recorded
ever since AIM began researching the
domain.
Nonetheless, there is significant room
for growth and improvement. Wom-
en Analytics employees are still new
in the workforce in India, with a
median age of 5.8 years compared to
7.4 years for the entire Analytics work-
force in India. Similarly, the median
salaries for women in Analytics is
26% lower than the entire Analytics
pool, 10.7 Lakhs v/s 14.4 Lakhs. Here,
the bias of lower salaries offered to
women employees for a given set of
experience and skill set needs to be
addressed by Labour Department at
Centre and State levels and industry
organizations including NASSCOM
and FICCI.

28 29
0%
5%
10%
15%
20%
25%
30%
Non-MBA
Postgraduates
Engineering
Undergraduates
Non-Engineering
Undergraduates
MBA
Postgraduates
Engineering
Undergraduates
(Top-tier Insti-
tutes)
Distribution by Education Level
Non-Engineering
Undergraduates
(Top-tier
Institutes)
MBA from
Top-tier
Institutes
PhD
27.3%
21.6%
20.2%
12.9%
10.8%
3.1%
2.3% 1.6%
Education Levels
The professionals in the Analytics
industry come from diverse educa-
tion backgrounds, as defined in the
graph. As the pool of professionals
has significantly grown over the last 5
years, the diversity of education back-
grounds has also widened. The larg-
est proportion of personnel are Non-
MBA postgraduates at 27.3%. The
proportion of professionals from
top-tier institutes is 16.2%. These
institutes include the nation’s top
Universities, IITs, IIMs, and other
high-ranking Engineering and MBA
institutes, such as BITs and NIT, and
FMS, XLRI, XIM, NMIMS, and SPJain
respectively. The proportion of PhDs
in this field is 1.6%.

30 31
5
15
25
35
45
55
65
2020 2021 2022 2023 2025
Indian Analytics Projections
2024
75
-5
85
0%
5%
10%
15%
20%
25%
30%
19%
20.8%
22.7%
24.8%
27.1%
29.7%
SECTION 6: MARKET
PROJECTIONS
The Analytics industry is expected
to grow at CAGR of 16% till 2025 -
the Indian analytics market in 2025
would touch $75 Bn. The Indian IT
& ITES market on the other hand
is expected to grow at 6.1% CAGR
– touching $255 Bn in 2025. While
analytics currently account for 19%
(dropping from 21% last year) of the
entire IT industry, the share of the
analytics market is expected to in-
crease and would account for 30% of
the Indian IT industry by 2025. Digital
services are experiencing tremendous
growth across the IT sector - digital
currently accounts for approximately
29% of the revenue of the IT & ITES
industry and has experienced 25%
y-o-y growth in revenues. Nonethe-
less, this growth in digital is expected
to moderate to about 19% CAGR,
enabling the contribution of the
analytics domain to rise in terms of
revenues and investments.

32 33
CONCLUSION The revenue for the analytics domain
increased to $35.9 Bn – this once
again indicates the strength of the
Indian analytics domain as a whole,
and the strength of the talent pool
specifically. The demand for analyt-
ics services in India on a consolidat-
ed basis continued to grow through
2019-20.
Most of the large IT organizations
are now offering end-to-end Analyt-
ics-as-a-Service within the broader
Data Sciences domain. Large and
medium-size IT and consulting
organizations, such as TCS, HCL Tech,
Accenture, and ZS Associates, are
now seldom providing stand-alone
analytics services to their clients. The
analytics function is strengthened by
AI/ML – AI and ML are leveraged to
automate aspects of data science
and ML models for development and
deployment.
While outsourcing is the main driver
of revenues, the revenues reported
are consolidated for both domestic
and outsourcing services. Numerous
domestic IT and domestic-consump-
tion driven enterprises have reported
that there is a significant shift from
simple descriptive data analytics to
high-end predictive and prescrip-
tive data analytics services sought by
client.
Excluding the IT and Consulting
sectors, the BFSI sector contin-
ues to lead the revenue segment,
with 35.6% of the revenue share.
The Pharma sector, which includes
captive and domestic enterprises
has contributed 8.5% of the revenue
share, a significant jump over the
years – continuing the trend of
revenue jumps in the previous years.
In terms of cities, Bengaluru emerges
as the destination with the highest
revenue share – at 29.4%, indicating
the appeal of the location in terms of
analytics talent and ecosystem.
Finally, given the growth in Digital
and Online segments across not just
the Indian IT industry but also oth-
er sectors, including Media, ecom-
merce, FMCG, and Telecom to name
a few, the Indian analytics markets is
expected to grow at 16% CAGR till
2025, accounting for 30% of the
revenues of the IT / ITES industry –
impacting not just employment but
also innovation in business
processes through analytics-driven
Artificial Intelligence models and
Prescriptive Analytics.

ANALYTICS INDIA MAGAZINE
#280 , 2nd floor, 5th Main,
15 A cross, Sector 6 , HSR layout
Bengaluru, Karnataka 560102
info@analyticsindiamag.com
ANALYTIXLABS
Bangalore | Gurgaon | Noida
info@analytixlabs.com

Analytics and Data Science India Industry Study 2020 Sector Revenue Breakdown

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (20)

Similaire à Analytics and Data Science India Industry Study 2020 Sector Revenue Breakdown

Similaire à Analytics and Data Science India Industry Study 2020 Sector Revenue Breakdown (20)

Dernier

Dernier (20)

Analytics and Data Science India Industry Study 2020 Sector Revenue Breakdown