Knowledge process outsourcing will be the next new thing following business process outsourcing and will revolutionize the traditional business services market says David Rich, who recently left Accenture Analytics to become CEO of Revolution Analytics.

The potential to combine almost unlimited data and crowdsourcing with traditional descriptive and predictive analytics with a staff of data scientists and good business people who can develop insights will provide a new kind of business analytics service. And, he said in a live webcast interview from the Cube at Strata 2012, this will be provided to the client on a gain-sharing model.

That, I believe, will completely disrupt the typical time-and-materials consulting business,” he told Wikibon’s David Vellante and SiliconAngle’s John Furrier. “You will see a lot of new businesses springing up using this for all kinds of things – fraud analysis and prevention-as-a-service, or customer-acquisition-as-a-service for instance.”

This will drive decision process reengineering, the next stage beyond business process reengineering. Organizations and outside experts will take a close look at how they make critical decisions and redesign that around these new advanced analytics-based services and big data to revolutionize the process and create better outcomes.

That is the reason Rich chose to become CEO of Revolution Analytics, which he calls “the Red Hat of R”, which is the next-generation analytical programming language that has replaced SAS and SPSS in academia. Like Linux, R was developed by an open source community of mostly academics as an advanced analytics language.

Now, he says, the legacy language owners are milking their markets. IBM, for instance, hiked the price of SPSS licenses after buying it. As a result, R is growing in commercial use – for instance Oracle recently announced that it was standardizing on R. “We thought that was great. The same thing happened with Linux. Legacy customers were tired of the high license fees [for the commercial operating systems], so they put Red Hat in business. We’re at that same inflection point.”

We want to take the foundational building-blocks we have and create role-based workbenches – a programmer’s workbench or a designer’s workbench, or an installer’s workbench.” This will make R more accessible to end-users as a productivity aid rather than forcing them to try to explain what they need to statisticians and then wait for results.

Revolution also is creating partnerships with a variety of vendors, from IBM to Teradata, to Greenplum. “We are particularly excited about our relationship with Cloudera and getting into Hadoop.”