India has been an important marketplace for data science and analytics products for many years now. If you look back, the data science market saw an upheaval with the coming of the e-commerce market in India. With so many e-commerce players running in billions of dollars of net worth, it led to the creation of strong data science needs and talent to optimise processes.
Another sector that created the boom of the data science product market is the BFSI sector. With numerous banks and fintech firms deploying analytics and driving customer support, data science products have come to the front, in optimising financial processes. Not just customer personalisation, but also fraud management are areas where data science solutions are deployed extensively in India. Marketing analytics in India has also been a strong area for the usage of data science.
Startups are emerging in this area with their unique analytics and data science solutions, catering to the specific needs of clients. India is home to so many IT firms TCS, Infosys and Wipro along with many consultancy firms, which have been providing customised data science and analytics services to clients. Such firms have been deploying innovative models for India based clients, even though a large chunk of their revenue comes from outsourcing data science products and services. Many of them have special accelerators for mapping their client journey and to achieve business goals.
Fast Maturing Indian Vendors
The AI and data science capabilities within the country have been maturing, and the demand for optimising resources has led to the boom. Innovative firms are optimising their processes in India. For example, a food delivery business may optimise its time to deliver or marketing firms may utilise data science/analytics to reducing wastage of its media resources using accurate targeting ML models.
There are multiple vendors which have grown in India with their unique capabilities when it comes to data science. Data science product vendors have matured tremendously in the last few years. Analytics India Magazine has been tracking the unique data science offerings from such vendors for the Indian and global community.
We have outlined these capabilities in AIM research, showcasing how such offerings are faring in the Indian space, the market reach and growth over the years and the impact they have on the tech ecosystem. With a broad portfolio of data science products, the vendors have maintained a strong presence in the market. Such vendors are expected to grow their market strength and capture the growth in the coming years. What we see is that the Indian analytics industry is expected to double in size by 2025 in comparison to 2019.
There are numerous players in the Indian analytics and data science market which are constantly focusing on research and development in order to expand their product portfolio and increase their customer base in developing regions. There are Indian grown analytics firms and brings together Data Engineering, Advanced Analytics, proprietary AI accelerators to drive enterprise intelligence.
For example, if we look at a firm such as Analyttica Datalab, it recently came out with LEAPS (Learn-Apply-Solve) – a powerful and innovative experiential analytics platform that allows its users to focus on the “practical and contextual applications” of analytics and data science principles. It is a part of Analyttica Treasure Hunt, a patented training platform by the firm, with access to 600+ in-built algorithms from R, Python and Tensorflow libraries among others. Yet another company Course5 is partnering with regional start-up community to achieve its mission of Narrow AI. Its AI Labs center in Bangalore is developing specific AI technologies to drive its industry-focused AI solutions and flagship products across Indian and global clients.
Cloud Will Further Give A Boost To The Market
The cloud adoption rate in India is growing remarkably fast as more organizations are realizing the cost and operational benefits of moving to the cloud. As a result, cloud vendors are targeting Indian customers, both large and medium-sized businesses and provide them to plug and play business intelligence solutions. If you look at the past few years, we have seen the expansion of cloud platforms in India.
This includes big names such as Microsoft Azure, Google Cloud Platform, AWS and more recently vendors such as Alibaba and Oracle launching cloud platforms in India, along with built-in analytics products. According to Oracle, the new Generation 2 Cloud infrastructure is targeted at Indian companies for innovation, including Autonomous Database, AI-based Applications, ML-integrated security, automated analytics, and a broad range of high-performance cloud infrastructure services. By coupling the world’s most advanced infrastructure with the best data management portfolio, customers can use their data to innovate.
Then there are other data firms entering the Indian market. One prominent example in recent times was the launch of data warehousing platform Snowflake in India. Snowflake has announced the general availability of Snowflake on Amazon Web Services (AWS) in the AWS Asia Pacific (India) Region. This development builds on Snowflake’s efforts to support its India customers that want to keep their data in India and leverage the flexibility and scalability offered by a cloud data platform. The deployment will empower Indian organizations to use the instant elasticity of Snowflake to grow their business by providing quick access to data insights safely and securely.
Factors For Data Science & Analytics Market Growth In India
Digitisation in India is also a leading factor, which makes the country a booming market for data science products in the coming years. A large percentage of Indian industries are untouched by automation and intelligence. As most of the industries in India are shifting to the cloud, it will create a tremendous amount of data, which can be leveraged to optimise processes and create value for enterprises, be it large or small.
There are many inefficient processes within different industries in India, and it is expected that we may see a hunger to optimise those processes and bring them under the purview of technology. So whether it is customised data science services or plug-and-play data science products, we will see demand for analytics and data science going up in India.
India has also been focusing on competing in the AI race. If it wants to compete with China and the US, India has to develop research and development facilities for AI, analytics and data science within the country. This will give a further boost to the rising talent among data science professionals.
There is a room for both large players and smaller players like startups to quench this demand for data-focused products. The startup boom has also added a lot in this regard, and we have seen multiple analytics and data science startups emerging out of nowhere in the last few years.
The data localisation norms will be more effectively used within India, and that could lead to even a stronger boost to the market as companies will not have to depend on particularly in-house teams. They can coordinate data analytics projects using virtual streams for cloud-based data science products. Of course, it will also require enhanced encryption in privacy norms for the market to mature even further for cloud-native data science products to thrive in the nation.