Analytics as a Managed Service: A Growing Segment for Fast Growing Companies

In today’s data-driven world, businesses constantly seek ways to transform vast amounts of data into actionable insights. A significant challenge is that data often resides in disparate systems—like ERP (SAP, Oracle), HRMS (Workday, Darwin Box), Contract Management (Coupa, Sirion Labs), and Customer Service (Salesforce)—that do not communicate with each other and track different metrics. As data analytics becomes more complex, many organizations turn to Analytics as a Managed Service (AaaMS). This approach addresses technical and resource challenges and allows company leadership to focus on strategic decision-making rather than data solution execution.

What is Analytics as a Managed Service?

AaaMS involves outsourcing the entire data analytics process to specialized service providers. These providers handle everything from data collection and integration to analysis and reporting. They bring comprehensive skills and tools to manage the analytics lifecycle, ensuring businesses can maximize the value of their data without significant internal investment.

Key Drivers of AaaMS Growth

1. Enhanced Focus on Strategic Decision-Making:

1. Leadership Empowerment: AaaMS allows leaders to shift their focus from technical execution, including hiring, training and mentoring analytics teams to interpreting insights and making informed decisions, driving the company forward with data-backed confidence.

1. Time Savings: Offloading analytics workloads frees executives and managers to dedicate more time to strategic planning and innovation.

1. Access to a Multidisciplinary Team:

1. Comprehensive Skill Sets: AaaMS providers offer a diverse range of expertise, including Project Management Officers (PMOs), data scientists, data engineers, and data modelers, ensuring all aspects of the analytics process are expertly handled.

1. Specialized Knowledge: Providers bring specialized knowledge and cross-industry best practices, which can be difficult and costly to develop in-house.

1. Cost Efficiency and Scalability:

1. Reduced Capital Expenditure: AaaMS eliminates the need for substantial investments in analytics infrastructure, operating on a subscription or pay-per-use model.

1. Scalable Solutions: Managed services can scale analytics capabilities up or down based on business needs, ensuring flexibility and cost-effectiveness.

1. Accelerated Time-to-Value:

1. Rapid Deployment: AaaMS providers quickly deploy analytics solutions, reducing the time it takes to generate insights from data.

1. Continuous Improvement: Providers continuously update and optimize analytics processes, ensuring businesses benefit from the latest technological advancements.

1. Risk Mitigation and Compliance:

1. Data Security and Compliance: AaaMS providers are well-versed in data security protocols and regulatory requirements, ensuring data is handled securely and compliant with relevant laws.

1. Risk Management: Providers offer robust risk management practices, minimizing the potential for data breaches and other risks associated with data handling.

Future Outlook

The AaaMS market is poised for significant growth. Industry forecasts predict a compound annual growth rate (CAGR) of over 20% in the coming years, driven by the increasing complexity of data analytics, widespread adoption of cloud technologies, and ongoing advancements in artificial intelligence and machine learning.

Conclusion

Analytics as a Managed Service is transforming how companies approach data analytics. By leveraging the expertise of managed service providers, businesses can focus on strategic decision-making while leaving the execution of data solutions to the experts.

As companies continue to recognize the value of data-driven insights, AaaMS is set to become an integral part of the modern business landscape.