AMSTERDAM, August 6, 2002 - According to recent IDC research, the Western European market for supply chain management (SCM) services will grow from $9.5 billion in 2001 to $19 billion in 2006, representing a compound annual growth rate (CAGR) of 15%. These services embrace discrete consulting engagement, outsourcing services, systems integration projects, and training and support services.
However, projects will no longer consist of one large engagement, or a "Big Bang" approach. Instead solutions will consist of a series of small consecutive projects. This enables customers to obtain tighter control over milestones, deliverables, budgets and ROI.
"As SCM projects will form the next generation of large scale solution implementation projects, service providers must bear their customers' ERP implementation experiences in mind, and develop a sales strategy that counters previous bad experiences well," said Erik Bruin, senior IDC analyst. Therefore, all SCM service providers should develop scalable offerings accompanied by strong in-depth return on investment (ROI) measurements.
Most vendors are already going to market by vertical industry, and working on an ROI story. "However," continued Bruin, "we cannot stress enough that a sound, measurable, in-depth ROI message will be key in gaining new business. Developing tailored offerings to attack the mid-market is something that not all vendors are doing at the moment."
While supply chain execution (SCE) will gain momentum next year, IDC sees product lifecycle management (PLM) as a fascinating new solution area. Despite the fact that applications are still fairly immature, many vendors are already achieving significant revenue in this area. IDC predicts a high CAGR for PLM services. In IDC's new study, European Supply Chain Management Services Forecast and Analysis, 2001-2006 (IDC#PM02J), an IDC Leadership Grid shows the relative positions of the main SCM players in terms of current market opportunity alignment and ability to gain market share. The following players are profiled: Accenture, Atos Origin, CGE&Y, CSC, Deloitte Consulting, EDS, HP, IBM Global Services, Intentia, KPMG Consulting, PwC Consulting, SAP, Siemens Business Services and Unisys.
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About IDC
IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at www.idc.com.
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For more information, contact:
Kathy de Haan
+31 (0)20 4089555
k.dehaan@idcresearch.nl
Erik Bruin
+31 (0)20 4089532
e.bruin@idcresearch.nl
Explore new economic landscapes, technology solutions, and strategies for IT investments at IDC's European IT Forum.
Date: September 16-17, 2002
Location: Grimaldi Forum, Monaco
For more information, visit http://www.idc.com/itforum02.