IDC predicts strong growth in supply chain management services
According to IDC, the SCM services market value will increase from US$ 26.1 billion in 2002 to reach $40.5 billion by 2007.
The supply chain management (SCM) services will show robust growth through to 2007. Statistics from IDC indicate that the SCM services market value will increase from US$ 26.1 billion in 2002 to reach $40.5 billion by 2007.
The economic downturn and the need to secure return on investment (ROI) has resulted in companies turning away from large scale projects to focus smaller implementations that address immediate ‘pain points.’
“2002 was a turbulent year for the worldwide SCM IT services market, but opportunities remain,” says Romala Ravi, manager for Supply Chain and Logistics services research at IDC.
“For today, unearthing these opportunities will require a laser focus on ROI and cost containment. Building strong and lasting relationships with clients will lay the groundwork for success further down the road,” he adds.
IDC is also predicting that ongoing economic and geopolitical uncertainties will mean that organisations will continue to take an incremental and modular approach to SCM technologies throughout 2003.
Going forward, organisations will turn to their service providers for help in creating larger, long term framework to steer their modular SCM initiative towards more strategic goals.