Introduction

Supply chain, as a business function, is undergoing some fundamental changes. Consequently, organizations are now turning to third-party service providers, who can deliver SCM solutions that go beyond the traditional boundaries of procurement, logistics, and inventory management. Against this backdrop, SCM BPO has emerged as one of the latest BPO verticals garnering global attention. The potential is huge and the market is trying to figure out ways to exploit this space. Recognizing this opportunity, service providers are developing comprehensive SCM BPO offerings as well. They are blending technology augmentation, reporting/compliance capabilities, and analytics to transform the supply chain operations of their clients. In a nutshell, the rapidly growing SCM BPO services market has a huge opportunity in store for both buyers and providers.

In this study, we analyze the global SCM BPO market, focusing on:

• Market overview and contractual activity
• Global growth and adoption trends
• Solution characteristics and emerging trends
• Service provider landscape

Scope of the analysis

• Third-party SCM deals by broad-based BPO service providers and SCM BPO specialists. Third-party logistics and warehousing service providers have been excluded
• Around 160 SCM BPO deals that have been signed as of 2013
• Coverage across 12 PO service providers with multi-process capability including Accenture, Aegis, Capgemini, EXL, Entercomms, Genpact, HCL, Infosys, OnProcess Technology, TCS, Wipro, and WNSContent

Content

This report will assist key stakeholders (buyers, service providers, and technology providers) understand the changing dynamics of the SCM BPO market and help them identify potential growth areas. In this backdrop, this report provides comprehensive coverage of the global SCM BPO market including detailed analysis of market size & growth, buyer adoption trends, solution characteristics, and service provider landscape.

• SCM BPO is at a relatively nascent stage, compared to other BPO functions
• The global SCM BPO market stood at ~US$1.2 billion in 2014 and witnessed rapid growth to the tune of 20-25% CAGR during 2010-2014
• This growth in contractual activity is driven by new contracts, which account for nearly 62% of the overall contractual activity
• Adoption of SCM BPO is primarily driven by North America, followed by Europe
• Industry-wise adoption of SCM BPO is led by manufacturing, with a 40% share of contractual activity to date
• Core SCM BPO processes focusing on delivery are the most frequently included, while end-to-end scope inclusion is rare
• Technology play in SCM BPO is mostly point-focused solution with limited end-to-end platform play
• Supply chain analytics is becoming more complex, breakthrough in big-data analytics will be a potentially disruptive force
• The SCM BPO service provider landscape is fragmented, both in terms of geography- and industry-wise adoption