‘AI adoption likely to spur consolidation in data analytics space’

Chennai: The data analytics industry could witness an uptick in consolidation with the adoption of artificial intelligence as it squeezes existing business models, according to a senior executive of US-based Kaizen Analytix.

Krishna Arangode, chief executive officer of the company, said the cost-based advantages and resource augmentation models are becoming harder to execute, and companies focusing only on that will be under pressure. He was speaking after the company's recent acquisition of Chennai-based Nihon Technologies, which, according to him, has complementary technology capabilities and a presence in the Japanese market. It is also in the process of finalising two more acquisitions of Indian companies in the space. With acquisitions and expansion, the company aims to scale up their operations with over 2,000 employees in India and about half of that in Chennai due to the availability of bilingual talent.

Arangode said clients in Japan and the US want to diversify from concentration risk, and that provides opportunities for service providers in India. Kaizen Analytix plans partnerships with universities to build a talent pipeline, including training students in the industry requirements along with Japanese language with N3 level proficiency. Kaizen Analytix provides data analytics services for auto, financial services and manufacturing and industrial customers and predominantly works in Japan and the US market.

Jeff Anderson, managing partner at Kaizen, said the demand is driven by legacy modernisation and customisation in the Japanese market and AI adoption and building systems around AI in the US market. They expect more opportunities in emerging areas like tariff, compliance analytics and broader data and AI platform work. Kaizen expects 70% of growth from acquisitions and 30% from organic growth in India.
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