Outsourcing Technology For Manufacturers (Technology Focus)

• This brief covers product lifecycle management (PLM) as a technology that can support operational outsourcing for manufacturers.
• Business process outsourcing (BPO) is discussed within this brief and is followed by a detailed market assessment.

• See how PLM technology can support operational outsourcing within the manufacturing industry.
• Understand how BPO services can benefit manufacturers, and the structure that such agreements can take.
• Assess the size of the global BPO market within the manufacturing industry across four key BPO segments.

DATAMONITOR VIEW

CATALYST

SUMMARY

METHODOLOGY

ANALYSIS

PLM supports manufacturers who wish to utilize operational outsourcing

Collaboration on design is a key feature of PLM

Support for the input of contract manufacturers helps maximize the outsourcing agreement

PLM helps to integrate the output from outsource design partners

Security remains a key issue, but PLM can handle it well

Manufacturers can allow outsourcers access to internal systems

An external platform provides additional security for manufacturers

PLM helps manufacturers assess the impact of an outsourcing-related problem

Metadata can automatically be associated with a specific product

Manufacturers seek to derive value from progressive BPO strategies

BPO contracts can take various forms, but normally break down into two categories

Manufacturers have the opportunity to outsource a number of different business functions

Finance and accounting helps manufacturers comply with regulation and focus on their core competency

Human resource management is one of the more popular functions to be outsourced

Manufacturers can improve their customer relationship managements by outsourcing its processes

Supply chain management outsourcing is a small segment of the market, but growing quickly

Outsourcing brings multiple benefits to manufacturers faced with increasing market and internal pressures

The market for BPO services in the manufacturing industry is continuing to grow

The worldwide market for BPO services will grow at a steady rate

The finance and accounting segment is growing, but at a decreasing rate

Human resource management is still growing, and at a faster rate too

Customer relationship management outsourcing is the largest component of the BPO market

Supply chain management is growing at the fastest rate, but still remains the smallest contributor to BPO

APPENDIX

Definitions

Extended methodology

Further reading

Ask the analyst

List of Tables

Table 1: The Global market for BPO services within manufacturing (2002-08)

Table 2: The Global market for finance and accounting BPO services within manufacturing (2002-08)

Table 3: The Global market for HRM BPO services within manufacturing (2002-08)

Table 4: The Global market for CRM BPO services within manufacturing (2002-08)

Table 5: The Global market for supply management BPO services within manufacturing (2002-08)

List of Figures

Figure 1: Datamonitor's view of PLM

Figure 2: The Global market for BPO services within manufacturing (2002-08)

Figure 3: The Global market for finance and accounting BPO services within manufacturing (2002-08)

Figure 4: The Global market for HRM BPO services within manufacturing (2002-08)

Figure 5: The Global market for CRM BPO services within manufacturing (2002-08)

Figure 6: The Global market for supply management BPO services within manufacturing (2002-08)