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​Enterprise analytics demand prompts need for higher-value professional services

​Enterprise analytics demand prompts need for higher-value professional services

“Analytics customers expect services vendors to go beyond just implementing software."

The global analytics and insights (A&I) professional services market will expand at a compound annual growth rate of 11.4 per cent, topping $US120 billion by 2020.

According to TBR research, enterprises will increasingly depend on A&I to deliver business outcomes, requiring higher-value professional services.

“Analytics customers expect services vendors to go beyond just implementing software to enabling enterprises to capture deeper business insights from their data to drive business outcomes,” TBR Professional Services senior analyst, Jennifer Hamel, said.

Looking ahead, Hamel said new technologies that create and parse big data drive opportunities and challenges that will affect A&I professional services market expansion.

For example, increasing cloud-based analytics consumption will give rise to the need for cloud application integration, user-focused design and managed services.

Also, combined with analytics, Hamel believes artificial intelligence (AI) and the Internet of Things (IoT) can significantly accelerate enterprises’ ability to transform raw data into insights for use by both humans and machines, transforming how businesses operate and deliver value over the next three to five years.

“IoT and AI go hand in hand, as wrangling the deluge of IoT data requires intelligent machines to observe patterns, extract insights, and send notifications or adapt behaviour in real time,” Hamel added.

“Vendors must maintain or increase investments in each of these areas to stay competitive as the A&I market evolves and matures.”

TBR’s research indicates vendors with end-to-end, hybrid services capabilities and strong ties to large enterprise buyers will win in the expanding A&I services market.

“IBM’s early investment in IoT and AI and tireless efforts to make a market for cognitive solutions will sustain its leading position in A&I services revenue through 2020,” Hamel explained.

“However, consulting and systems integration peers such as Accenture, PwC and Deloitte emulate IBM’s solutions-focused approach and will surpass the company in growth by promoting product-agnostic analytics solutions to cater to hybrid IT demand.”

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