Analytics and insights services segment overview
Analytics and insights (A&I) services revenue expanded 13.7% on average in 3Q17 for the 20 vendors benchmarked by TBR, spurred by growing client interest in data-intensive digital transformation initiatives requiring services such as consulting, data integration and analytics application development. Consulting continues to lead segment revenue growth, but double-digit expansion in Integration and Implementation (I&I) and Application Development and Maintenance (ADM) highlights increasing demand for execution.
- Consulting revenue growth continues to accelerate, partly driven by Accenture and McKinsey, both of which are top six vendors in revenue and year-to-year growth for the segment. A new Digital Strategy consulting practice positions IBM to compete more effectively with these vendors for advisory-led opportunities that lead to cognitive and analytics implementation engagements.
- As enterprises look to become data-driven, vendors help them navigate increasingly complex choices around which data sources to draw from for analytics and how to integrate legacy and new data sources, accelerating growth in the I&I segment.
- A&I ADM revenue growth remains robust as clients seek vendors’ support to build analytics applications that improve the user experience and drive business outcomes. Client centers remain a key tool for vendors to showcase their application design and coinnovation capabilities.
- Infusion of automation and AI into managed services delivery slows revenue growth for the segment, which is dominated by technology-centric vendors that can bundle services with A&I software and infrastructure sales. Revenue leader IBM recently unveiled the Integrated Analytics System, which provides machine learning capabilities to accelerate data integration and analytics performance.
— 3Q17 Analytics & Insights Professional Services Vendor Benchmark