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12/17/2001

Project Lifecycle Management Services Market Heats Up, New IDC Study Reveals

FRAMINGHAM, MA – DECEMBER 17, 2001 – With increased product complexity, increased customer demands around product performance, and correspondingly decreased product life cycles, manufacturers are being pressured to deliver better products cheaper and faster. According to a new study published by IDC, the product life-cycle management (PLM) services market is revving up as companies continue to seek broader market uptake of PLM-related solutions. The activities being sought by firms include functional design, collaborative product commerce (CPC), technology infrastructure build-out for supply chain management (SCM) and customer relationship management (CRM), and enterprise/product data management (PDM).

 

"This scenario represents a substantial market opportunity for services firms," said Ting Piper, program manager with IDC’s Supply Chain Services research. "We believe the key factors necessary for a services firm to stake out a leadership position in this market include building real market differentiation, striking the correct balance between quality and speed, and tightening strategic partnerships with application vendors."

Discrete PLM services revenues reported by the surveyed companies ranged from $34 million to $209 million for fiscal year 2000, IDC’s research reveals. From a regional perspective, the Americas had the largest revenue percentage dedicated to PLM services followed by Europe, the Middle East and Africa, and Asia/Pacific. The majority of PLM revenue by services activity was focused around systems integration and consulting, with only minor participation in custom application development, operational outsourcing, support, and training.

The profiled services providers in the IDC study indicated a range of different target company types that they are pursuing with respect to PLM services opportunities. The top companies include Fortune 100, Fortune 500, Fortune 1000, and major global companies. Other targeted organizational types include small enterprises, governmental offices, and public and public/private exchanges. PLM services fees range between $150 and $325 per hour, depending on a range of factors, including staff level, solution type, client, project difficulty, and firm policy.

"Our research shows that PLM services fees are generally at the higher end of the fee scale because they are viewed as cutting-edge, high-level solutions intended to assist primarily large companies in achieving demonstrable competitive advantage in their respect marketplaces and industries," Piper said.

In this report, IDC constructs an overall picture of the PLM services market, providing the following information in aggregate form: company overview and services offerings, services methodology and activities, pricing models, target market and buying behaviors, partners and alliances, and competition. The study also provides individual profiles of the following eight leading PLM services providers: Accenture, Andersen, CGE&Y, CSC, EDS, IBM, KPMG, and PwC.

To purchase this document, Product Life-Cycle Management Services: A Rapidly "Developing" Market Opportunity (IDC #25978), call IDC's volume sales hotline at 508-988-7988 or email jnagle@idc.com.

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.

IDC is a division of IDG, the world's leading IT media, research and exposition company.

 

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