Analytics and Big Data: big markets in India for adopters and innovators

Big Data, Open Data, analytics, data insights and visualisation open up lucrative opportunities for Indian companies, startups and incumbent IT/KPO players. A number of market research reports throw light on this opportunity, and a wave of startups is emerging in this space.

Market trends and insights

A report by NASSCOM and CRISIL Global Research and Analytics predicts that the global Big Data market will reach $25 billion by 2015, up from $5.3 billion in 2011; the Indian industry in Big Data will reach $1 billion by 2015.

At the 2014 edition of its Big Data and Analytics Summit, NASSCOM released another report in partnership with BlueOcean Market Intelligence, which predicts that the analytics market in India could reach $2.3 billion by the end of 2017-18.

According to research by Avendus Capital, the data analytics market in India is expected to reach $1.15 billion by 2015, and will account for a fifth of India’s knowledge process outsourcing (KPO) market of $5.6 billion. Market leader US is expected to have a shortage of 140,000 – 190,000 analytics professionals by 2018, which opens up a huge opportunity for product and service companies in India.

The Internet of Things is another market opportunity for India in Big Data and analytics. According to Machina Research data cited at a recent panel of TiE Bangalore, the global market for IoT in 2020 will be worth $373 billion in revenue in hardware and software, and India will account for $10-12 billion of this total revenue. Early stage startups like SenseGiz.com and mature startups such as ConnectM are active in this space.

“Analytics holds the key importance for the commercial growth of India in the future to come,” according to Nishu Navneet of IIT Kanpur, citing research that shows 29% of analytics companies are in Bangalore, 25% in NCR, 8% in Pune, 8% in Hyderabad, 6% in Chennai and 6% in Mumbai.

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Indian startups and adopters

Analytics India magazine divides the Indian analytics market into three kinds of players: service providers (80% of the market), captives (back offices for analytics: 15% of the market) and domestic market (Indian companies using analytics: 5% of the market).

Indian companies in a number of sectors are using analytics: banking (ICICI, HDFC, Axis, Yes Bank, Kotak Mahindra), telecom (Bharti Airtel, Idea Cellular), automotive (Tata Motors, Mahindra & Mahindra) and eCommerce (Flipkart, Snapdeal, Jabong). Information Week magazine has also documented the use of analytics by a range of Indian players: HDFC, Shoppers Stop and Aircel. Outside of the private sector, the BJP party used analytics and realtime social media monitoring during its recent election campaign.

Indian startups and service providers in the space of analytics services and data insights include a range of players such as AbsolutData, DataWeave, Flutura, Formcept, Fractal Analytics, GenPact, Germin8, LatentView, Mu Sigma, Nanobi and Veda Semantics.

For example, the combination of digital marketing and realtime analytics has opened up avenues for startups such as Digital Quotient. It combines the power of mobile, social media, videos and analytics technology to connect with digital audiences and convert them into consumers. Noida-based Valiance Solutions offers analytics solutions to US retailers and microfinance credit bureaus.

Bizosys Technologies (Big Data for performance enhancement), Data Weave (discovery of public data) and PromptCloud (large-scale data crawling and analytics) are other startups to watch (see YourStory coverage here). Villagineer is a player in the rural information and business space, with a data-sharing portal connecting CSR, NGO and partner ecosystems with relevant businesses.

The hunt for talent and markets is driving Indian players on an expansion spree. Indian analytics player Mu Sigma recently acquired Webfluenz, a Singapore-based social media analytics firm for an undisclosed amount. Over the last decade, Mu Sigma has secured clients such as IBM, Accenture, Dell and Microsoft. It is now valued at $1 billion and has raised over $200 million from Sequoia Capital and other investors.

The Bangalore chapter of The Indus Entrepreneurs (TiE) recently hosted a panel on Big Data, with insights and tips offered by companies such as SAP Labs, Crayon Data, IDG Ventures and Unbxd. The healthcare sector in India, along with health data applications for government, is ripe for Big Data adoption. Healthcare personal analytics via portable devices and the Internet of Things has spawned products and startups such as Garmin Connect, Zed9, CycleOps, Concept2, FitBit, MyZeo, Nike+, WakeMate, BodyMedia and Me-Trics, according to Tom Davenport, author of Big Data at Work.

Joel Gurin, Senior Advisor at the Governance Lab (GovLab) at New YorkUniversity, shows how the convergence of four different kinds of data – Big Data, Open Data, Personal Data, Scientific Data – is opening up a new wave of startups in areas like healthcare. Active players in this space in India also spoke at YourStory’s mHealth Meetup earlier this year.

India has a $70 billion industry in home healthcare services, according to Zach Jones, founder of Portea Medical. The company leverages Big Data and analytics along with a team of 350 clinicians to provide home healthcare services in seven cities in India. It has raised $8 million in Series A funding and its investors include Accel and Venture East. Startup Get Active produces wearable computing devices to monitor daily physical activity.

Interesting formats to watch to tackle Open Data and Big Data opportunities include DEXTRA’s online data innovation challenge platform, which allows companies to get access to a community of data scientists for pitching problems and seeking solutions.

YourStory TechSparks: innovation, business, partners, investors, media and much more!

YourStory’s TechSparks is an inspiring chronicle of India’s startup journey, with product showcases, insightful panels, high-power keynotes. This time  we have a TechBazaar just for you. Our previous editions of TechSparks also featured Indian startups in analytics and Big Data.

TechSparks 2013 witnessed participation from Mu Sigma, FusionCharts, Flutura, TradersCockpit, Pervazive and LoudCell. Earlier, TechSparks 2012 had a speaker lineup and startup pitch agenda which included Heckyl Technologies, Impact Index and DataWeave. If you are a big data & analytics startup, you can’t miss your chance to be a Tech30!

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TechSparks is the place for getting leads and deals from customers and investors. The 2014 edition of TechSparks promises an even more diverse and power-packed programme, with updates and speaker profiles to be announced in the coming weeks. If you are an innovator in the space of Big Data and analytics, TechSparks 2014 is definitely the event for you: sign up for a pitch, booth, speaker slot or delegate pass!

 Feel free to write to us at techsparks@yourstory.com for any queries! We are listening to you.


Madanmohan Rao

Madanmohan Rao

Madanmohan Rao is research director at YourStory Media and editor of five book series (http://amzn.to/NpHAoE). His interests include creativity, innovation, knowledge management, and digital media. Madan is also a DJ and writer on world music and jazz. He can be followed on Twitter at @MadanRao