Business Needs Fuel Growth of Analytics Services in Brazil

Enterprise use of data and analytics services is growing strongly in Brazil as more companies use data to improve their operations and generate new revenue, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2022 ISG Provider Lens Analytics Services report for Brazil finds that several leading analytics service providers in Brazil reported growth rates of more than 50 percent between 2021 and 2022, indicating that the market for expert assistance in this technology area is soaring. Both large and small companies are generating ever-increasing volumes of both structured and unstructured data and seeking help in collecting, analyzing and monetizing it, ISG says. The trend extends across data science, data engineering and data monetization services, the report says.

“A close look at the Brazilian market suggests that demand for data and analytics services is far from being satisfied,” said Sush Apshankar, analytics lead for ISG Americas. “Interest in the use of data is supporting the emergence of new providers and the expansion of existing companies’ portfolios.”

As in most regions, enterprises in Brazil — especially midmarket challengers — are beginning to invest in new technologies including AI, machine learning and digital twins to derive insights they can act on for competitive advantage, the report says.

Disappointment by some enterprises at the outcomes of analytics projects is easing as providers create services better suited to the needs of customers in Brazil, ISG says. Some customers have been concerned that data initiatives required high investment, time-consuming data governance processes and slow development of data lakes, all leading to the creation of statistical models that never made it into production.

Service providers have responded by offering productized solutions with clearly defined objectives, such as fraud prevention and customer churn prevention, the report says. This has led to faster implementation, clearly defined objectives and measurable results, with the result that enterprises are more willing to invest in such projects.

Large enterprises in Brazil with massive amounts of data face steep technology challenges in making the best use of it, so they are turning to data engineering service providers with proven capabilities in curating large data sets for a single view across all formats, channels and media, ISG says.