Analytics: Demand and Supply in India
Necessity is the mother of all invention. When we required information we can’t overlook the existence of huge data. A raw data when processed give us useful information which helps us to solve various day today problems. When there is data their needs to be its analysis and here comes the role of analytics. Analytics is the discovery, interpretation, and communication of meaningful patterns in data. Analytics relies on the simultaneous application of statistics, computer programming and operations research to quantify performance. Firms may apply analytics to business data to describe, predict, and improve business performance. It include areas like
- predictive analytics
- prescriptive analytics
- enterprise decision management
- retail analytics
- store assortment
- stock-keeping unit optimization
- marketing optimization
- marketing mix modeling
- web analytics
- sales force sizing and optimization
- price and promotion modeling
- predictive science
- credit risk analysis
- fraud analytics
Companies have recognized the immense business value which can be delivered using data. Google, Amazon, Face book, are just some of the companies which have made investments in data products such as self-driving cars, voice / image recognition, wearable devices etc. This has caused a huge demand of skilled professional in data related jobs around the world. Job profiles such as Data Scientist, Data Analyst, Big Data Engineer, and Statistician are being largely hunted by companies. Not only they are being handsomely paid, but a career in analytics has much more to promise.
After the U.S., India has the largest demand of analytics / big data / data science professionals. Amidst such demand, people find themselves confused to select an appropriate job profile for the best future.
India’s high demand for big data workers contrasts with scarcity of skilled talent. The biggest fallout of the big data revolution — where every type of business gathers and analyzes data — is a massive human resources shortage. Across the globe, thousands of data analytics jobs are going a begging because of a shortage of qualified manpower.
A Mckinsey Global Institute study  projects that the US will face a shortage of about 190,000 data scientists by 2018 and, further, a shortfall of 1.5 million managers and analysts who can understand and make decisions using big data.
In India, which has long been a hub for outsourced technology services work, the scarcity of analytics talent is particularly acute, as global companies send increasing numbers of data-related tasks to the country. The country currently has the highest concentration of analytics globally but even that is extremely inadequate, said Srikanth Velamakanni, the Bangalore-based cofounder and CEO of San Mateo, CA headquartered Fractal Analytics, which has the bulk of its operations in India. “There is huge demand to offshore analytics work, but skill supply is limiting growth.” Data analytics as a job discipline became mainstream almost a decade ago, and the demand for trained professionals has been growing steadily since.
Given India’s reputation for the availability of professionals in varied disciplines at reasonable costs, global banks and financial services firms were the first to migrate their analytics work to India, followed by pharmacy and life sciences companies. Global retailers, consumer firms, logistics firms, consultancies, and engineering firms have all begun routing their data analytics work to IT services providers and specialized analytics service providers in India. “The demand for talent has been going up steadily, but nothing significant has been happening on the supply side,” said Aditya Narain Mishra, president, staffing at the Indian unit of global recruiting firm, Randstad.
Data analytics is not coding work but thinking work, described Dinesh Kumar, a professor of quantitative methods and information systems at the country’s premier management school, the state-funded Indian Institute of Management in Bangalore. “The potential is huge, but we are behind in creating a talent pool,” he said. Quality is a worry, and companies are finding it difficult to recruit top-class people, Kumar said.
The supply-demand mismatch has begun to show up in the form of unfilled positions in user organizations. “Up to 20% of analytics jobs are going unfilled or are being filled with difficulty,” noted Aditya Narain Mishra. Large multinational IT consultants are also feeling the talent pinch. Randstad points to a telling statistic to illustrate the skills shortage: the annual pay hikes for analytics professionals in India average 50% more than other IT workers.
A huge array of organizations like Ayata, IBM, Alteryx, Teradata, TIBCO, Microsoft, Platfora, ITrend, Karmasphere, Oracle, Opera, Datameer, Pentaho, Centrofuge, FICO, Domo, Quid, Saffron, Jaspersoft, GoodData, Bluefin Labs, Tracx, Panaroma Software, and countless more are utilizing Big Data Analytics for their business needs and a huge job opportunities are possible with them.
Analytics no matter how advanced they are, does not remove the need for human insights. On the contrary, there is a compelling need for skilled people with the ability to understand data, think from the business point of view and come up with insights. For this very reason technology professionals with Analytics skill are finding themselves in high demand as businesses look to harness the power of Big Data. A professional with the Analytical skills can master the ocean of Big Data and become a vital asset to an organization, boosting the business and their career.
Ms. Divya Kiran Raj
Divya is an MBA Finance and has worked with L.N Mishra Institute as Visiting Faculty and ICICI Mutual Fund.