Data skills gap costs Indian companies ₹33,216 crore every year, says report

Our Bureau New Delhi | Updated on February 26, 2020

Lack of data skills in shrinking productivity in Indian firms   -  PeopleImages

Data is a gold mine that can fuel innovation and growth. However, local companies lose over eight working days (69.5 hours) per employee annually when they struggle to make sense of data, which in turn afffects their productivity and business value, according to a report by Accenture and Qlik.

The report titled The Human Impact of Data Literacy is based on a survey of 9,000 employees around the world, including 1,000 in India. In India, these lost days are due to procrastination and sick leaves which stem from stress around information, data and technology issues, and equate to an estimated productivity loss of ₹33,216 crore ($4.6 billion).

The report said there are two reasons that the data literacy gap is causing a disconnect and impacting Indian firms’ ability to thrive in a data-driven economy.

First, despite nearly all employees (83 per cent) recognising data as an asset, few are using it for informed decision-making. India has the highest data literacy level globally, with 46 per cent reporting being confident in their ability to read, understand and work with data.

While 53 per cent of employees trust their decisions more when they are based on data, four in five (80 per cent) still frequently defer to a “gut feeling” rather than data-driven insights when making decisions.

Second, lack of data skills is shrinking productivity. A surprising 47 per cent of surveyed employees even state that they will find an alternative method to complete the task without using data at all.

“No one questions the value of data – but many companies need to reinvent their approach to data governance, analysis and decision-making. This means ensuring that their workforce has the tools and training necessary to deliver on the new opportunities that data presents,” said Sanjeev Vohra, Group Technology Officer and global lead for Accenture’s Data Business Group.

Published on February 26, 2020

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