More U.S. Companies Embracing Data Analytics to Improve Operations and Grow During COVID-19 Pandemic
According to a new report by Information Services Group (ISG), the U.S. remains the largest market for data analytics services, experiencing a surge in demand during the COVID-19 pandemic. The report highlights a significant shift towards advanced analytics tools, particularly in banking, financial services, and healthcare sectors, focusing on customer experience and operational efficiency. Despite the high demand, there is a notable shortage of data scientists in the U.S. The report evaluated 58 providers, naming IBM as a leader across all six quadrants.
- The U.S. is witnessing a significant increase in demand for advanced analytics tools during the pandemic.
- Banking, financial services, and healthcare sectors are at the forefront, prioritizing customer experience.
- Service providers are increasingly incorporating AI and ML into their offerings.
- ISG evaluated 58 providers, showcasing a competitive landscape in data analytics.
- There is a shortage of data scientists in the U.S., impacting service capabilities.
Enterprises in the U.S., the largest market for data analytics services, continue to invest heavily in this area to address top- and bottom-line growth challenges during the COVID-19 crisis, according to a new report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.
The 2020 ISG Provider Lens™ Analytics – Solutions and Service Partners report for the U.S. finds organizations demanding advanced analytics tools and services, as they seek to better understand customer behavior and improve operational efficiency during the pandemic. The U.S. is seeing increasing adoption, including several large-scale, transformational projects with analytics at the core. A majority of service providers in the report say they derive 15 percent or more of their total data analytics revenue from the U.S., making it their largest market.
“Data is the lifeblood of business, and in volatile times, companies need actionable data more than ever,” said Kathy Rudy, chief data and analytics officer of ISG. “U.S. enterprises are still finding their way through the pandemic, so they want to measure and understand consumer behavior and other success factors as well as possible.”
Banking, financial services and health care organizations are leading the U.S. surge in analytics demand, the report says. The focus for most is understanding and improving customer experience, but business process and operational challenges are also key reasons to invest in these capabilities.
Though many major service providers with data analytics offerings are based in the U.S., demand for data scientists in the country outstrips supply, ISG says. Meanwhile, acquisitions and partnerships among service providers are on the rise as they seek to expand their portfolios, enter new markets or gain technology certifications in specific areas.
As enterprises tap into a wider variety of data types and begin to apply analytics to complex Internet of Things applications, more service providers are adding artificial intelligence (AI), machine learning (ML) and automation to their solutions, the report says. Automation can improve data management functions like cataloging and data parsing and accelerate outputs. While most of current solutions are rules-based, some providers are introducing features with cognitive capabilities based on AI.
Similar capabilities are also emerging in reporting tools, increasing their power to generate insights, according to the report. The trend toward omnichannel marketing and engagement with consumers in many settings is heightening the need for more sophisticated reporting on multiple streams of data from such platforms as mobile, web and TV. In addition, more organizations are seeking self-service business intelligence reporting tools that offer advanced statistical and processing capabilities that go beyond visualizations.
The 2020 ISG Provider Lens™ Analytics – Solutions and Service Partners report for the U.S. evaluates the capabilities of 58 providers across six quadrants: Data Science Services, Data Engineering Services, Data Infrastructure & Cloud Integration Services, Data Lifecycle Management Services, Self-Service Analytics and BI Platforms As-a-Service, and Analytics Reporting Solutions.
The report names IBM as a leader in all six quadrants. It names Atos and DXC Technology as leaders in four quadrants and Accenture, Capgemini, Cognizant, Deloitte and Infosys as leaders in three quadrants each. HCL, Qlik, SAP, Tableau and TIBCO are named as leaders in two quadrants, while Microsoft, Oracle
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