MUMBAI: While most data analytics companies are figuring out ways to grow at a faster clip in traditional markets in the West, Blueocean Market Intelligence is betting on rising demand from India and other emerging countries. To that end, the Mumbai-based firm is ramping up its headcount to over a thousand from the current 700 and is also scouting for acquisitions.
The company, which bought UK-based analytics technology platform Cognicient earlier this year, is looking for businesses that would help it scale. "We don't want to acquire for size," Ashwin Mittal, president of the company said. "We would look for technology platforms, or companies that would help us scale up in the financial services and automotive space." Blueocean has strong offerings in the technology, consumer goods and life sciences space, Mittal said.
Technology platforms will also help the firm drive revenue without having to add an equivalent number of employees, what is called non-linear growth in IT industry parlance and is much sought after in the sector. For analytics firms, with industry attrition rates north of 20% and a limited number of possible recruits, breaking the link between revenue and employees is key to future success.
The acquisition of Cognicient gave the firm a foothold in the UK market that it will look to grow further. It currently has offices in Dubai, the United States and India. When Blueocean was set up in 2000, it had expected to focus on the Indian market for data analytics. Then, the market in India was not large enough and the firm focused on the much bigger US market, which now accounts for about 80% of its revenues.
"The US does account for the bulk of our revenues but as we grow in other markets, the share of the US to our revenues could come down to about 60% in the next three to six years," Mittal said. He, however, declined to give the company's revenue but said the company was growing rapidly.
The market for data analytics is huge. Research firm IDC says the big data analytics market will be worth $24 billion (Rs 1.4 lakh crore) in 2016. And everyone from specialist analytics services firms such as MuSigma to IT players like Tata Consultancy Services and Infosys are gearing up to get a piece of the pie. Blueocean said it is seeing an increase in interest in analytics in India.
"The market here is small but it is increasing in size. So far, our focus has been on the US but now we will look to grow in the Indian market as well," Mittal added. The Indian market is currently being sized by the company and the National association for software and services companies for the annual analytics report which will be released in June at hyderabad
