<\/a><\/p>\nReport author Reetika Joshi, HfS Research Director (click for bio).<\/p>\n<\/div>\n
So how would you describe the current state of BFS analytics services?<\/strong><\/span><\/p>\nFor most service providers, big data and analytics services are the fastest-growing businesses in their portfolios, with significant revenues coming from BFS clients. This is due to the growing adoption of data-driven decision making within different parts of the enterprise for BFS buyers, and the need for more analytical support than internal staff can support.<\/p>\n
Service providers have doubled down on BFS verticalization in their analytics portfolios, turning initial work with clients for analytics modeling and reporting into portfolios of pre-packaged industry-specific use cases and catalogues. As service buyers consistently stress the need for domain expertise from service providers, we see service providers strengthening industry training programs and hiring professionals from BFS industry backgrounds to increase contextual understanding and allowing for more meaningful analysis. We see the types of BFS analytics solutions changing today, with the next level of analytics use case development. BFS analytics services buyers seek the following:<\/p>\n
\n- The application of cross-vertical learnings to banking, especially from other consumer-facing industries that have progressed in customer experience analytics\u00a0(e.g., from telecom to retail banking)<\/li>\n
- The incorporation of newer sources of data into existing analytical models to gain new insights into fraud, risk, and marketing\u00a0(e.g., sensors, geolocation mobile data, and web and social data)<\/li>\n
- The exploration of modern business intelligence and reporting applications and tools, big data infrastructure, and advanced analytics platforms\u00a0(e.g., cloud-based data warehousing, the mobile delivery of reports, and insights)<\/li>\n<\/ul>\n
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These initiatives are step changes for in-house data and analytics teams that are already struggling just to keep up with the demand from a growing list of internal clients. Service providers are bringing in the skills, technology, and scale to these categories coming from investments in the last few years in this industry vertical. We see this market as gradually transitioning, with service buyers and providers becoming more collaborative and focused on solving business problems to improve the outcomes for different functions within banking and financial services organizations. We view this as a step in the direction of a transition to the As-a-Service Economy, with service buyers leveraging their service providers more strategically for their big data and analytics needs.<\/p>\n
Which service providers are leading this market today, Reetika?<\/span><\/strong><\/span><\/p>\nThe banking and financial services industry vertical has historically been the biggest revenue contributor for most service providers in our evaluation. They have developed meaningful relationships with BFS clients across the globe by taking on outsourced IT services, infrastructure, and BPO services. In the last decade, they expanded services to include data management, reporting, and analytics across industry-specific and horizontal business functions. As a result, today we observe a significantly mature set of service providers that have strategically invested in this vertical, have strong multi-tower relationships with their clients and have both analytics services and technology expertise across different BFS business needs. This is visible in our Blueprint grid results with several As-a-Service Winner\u2019s Circle and High Performer positions from leading service providers in this market:<\/p>\n