If you want to pursue a career as an analytics professional, a passion for numbers is a must. A look at how you can grow in the profession

Junior Analyst

• Description: Data preparation and simple analysis under guidance
• Skill: PG in Statistics/ PG in Econometrics/ MBA with quant background
• Experience: 0-2 Years
• Salary: 3-5 (Rs lakh/annum)

Analyst

• Description: Data preparation & simple to medium analysis independently
• Skill: PG in Statistics/ PG in Econometrics/ MBA with quant background, SAS and other statistical packages
• Experience: 2-4 Years
• Salary: 5-8 (Rs lakh/annum)

Senior Analyst

• Description: Advanced analysis, client management
• Skill: PG in Statistics/ PG in Econometrics/ MBA with quant background, SAS and other statistical packages
• Experience: 4-6 Years
• Salary: 8-12 (Rs lakh/annum)

Consulting Analyst

• Description: Conceptualising, advanced analysis, team management, client management
• Skill: PG in Statistics/ PG in Econometrics/ MBA with quant background, SAS and other statistical packages
• Experience: 6+ Years
• Salary: 12+ (Rs lakh/annum)

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In an age when the primary source of knowledge was the thick, dusty volumes on library shelves, scholars called the shots. Then came the Internet and, suddenly, everybody had instant access to huge amounts of data. Today, it’s not the access to data that makes you valuable, but what you make of it. And that’s exactly why an analytics professional is in demand.

Analytics explained

“Analytics is about arriving at better and rational business decisions using existing data. It assists in improving or standardising decisions at all levels of an organisation,” defines N.T. Arun Kumar, CEO and director, D&B TransUnion Analytic and Decision Services, an analytics, consulting and technology firm. Analytics entails dealing with large amounts of data, structuring it and then applying advanced statistical tools to slice and dice the data to answer business questions of the client.

For example, a company that makes anti-aging creams might have the following questions regarding its television ad spend—where, and when, to put the ad? Do we use a celebrity to promote the product? And so on. A team of analysts would start with large chunks of data—television viewership patterns, average age of the audience and other related data, to come with definite answers.

Analytics can be broadly classified into risk management (that helps a company identify and manage risks) and predictive analytics (concerned with the prediction of future trends). Though sometimes used interchangeably, analytics is only a part of the KPO (knowledge process outsourcing) industry, which also includes data gathering from primary and secondary sources. Also, KPO would imply only the knowledge process work that is outsourced to India and not domestic analytics requirements.

Branches of analytics

“Wherever there is any purchase or sales happening, analytics can come into play,” says Gautam Munish, Redwood Associates, a research firm that helps companies leverage their information assets. Traditionally, analytics is used in certain areas. Marketing analytics scrutinises factors affecting sales. Web analytics, that studies Internet-usage patterns of users, forms a part of it and is led by Yahoo, Google and Amazon. Then, there is financial analytics that develops risk management solutions for the financial services industry. A major area is credit analytics that determines the creditworthiness of a business or an individual. HR analytics help HR managers manage human capital effectively. Some other areas would be patent analytics, which assists a company in formulating strategies around its products’ intellectual property, and supply chain analytics, which provides supply chain optimising solutions.

Growth potential

The analytics industry now stands where IT was in the mid-1990s. But it's largely centered in the US and Europe. “In India, it started primarily with back end operations of global financial institutions and slowly moved to other areas,” says Vinay Gupta, group manager, Evalueserve, a knowledge services provider. Lately, it has shown signs of growth with many banks and financial institutions having internal analytics teams. Telecom, pharmaceuticals, retail and FMCG are also realising its value.

According to International Data Corporation, a market research and analysis firm, the analytics market globally is estimated to grow from $25 billion in 2007 to $31 billion by 2011. Anil Kaul, CEO, AbsolutData, a market research and analytics company, pegs the growth at 30-40 per cent. “There is a tremendous demand for analytics professionals in India. Companies have been growing and hiring even during the downturn”, he says.

What it takes

“You have to maintain high quality standards and work under pressure situations”Rajat Narang 29, Delhi, Works as a senior consultant with AbsolutData, a market research and analytics company

Rajat Narang, 29, a senior consultant with AbsolutData and an IIT Delhi graduate, chose the industry because numbers ‘fascinated’ him. A post-graduate in statistics and econometrics are among the required skills (see The Number Game). Companies also look to tap into bright engineering minds. You need to familiarise yourself with the technical side, i.e., statistical tools and software as well. Institutes like G&K Analytics Training Institute, an associate of Redwood Associates (www.analyticstraining.in), equip students with such skills. Another requirement is a deep understanding of the client’s business. Hence, MBAs are in demand. A professional is expected to develop a domain specialisation within a few years.

Finally, the results have to communicated in an easy language, which calls for good presentation skills.

A day in the life

For an analytics professional, life is full of new challenges. “He gets to solve high-impact business problems, which normally have a quick turnaround time,” says Dhiraj Rajaram, founder and CEO, Mu Sigma, an analytics firm. An analyst can see his efforts translate into millions of dollars in profits for the client. Few other professions give such a sense of satisfaction.

With reports from Pheji Phalghunan anaghpal AT outlookindia DOT com