Study Reveals How PLM Systems Integrator & BPO Services Vendors Stand

Manufacturers universally are in the process of moving or rationalizing their global product lifecycle management (PLM) instances to a single system that unifies data and extends to other systems through 3rd Platform technologies due to product complexity and value chain expansion.

As a result, PLM-skilled systems integrators are more in demand than ever.

To help manufacturers evaluate the vendor landscape, IDC Manufacturing Insights published a new report, IDC MarketScape: Worldwide Manufacturing PLM Systems Integrator & BPO Services 2015 Vendor Assessment (Doc #MI259496).

The new MarketScape evaluates ten vendors, including Accenture, Atos, Capgemini, Cognizant, Geometric Limited, IBM Global Services, Infosys, L&T Technology Services, Tata Consultancy Services (TCS), and Tech Mahindra.

The vendors evaluated in the new report have decades of experience in both manufacturing and large, global PLM practices, and are currently investing in growing these practices.

As such, the line differentiating between these vendors is close. Based on several conversations with end users, IDC found that it's not enough to be experts in the different relevant software packages and to have the ability to integrate these across the enterprise; these capabilities are to be expected

Where service providers in the PLM market differentiate themselves for systems integration is in two key elements:

Having the ability to work cohesively across the different functions of the global team – account management, project management, system architecture, and technical support – to present a unified front to the client.

Executing to the letter of the service agreement and proactively making recommendations and providing potential solutions to problems.

According to Jeff Hojlo, program director, IDC Manufacturing Insights, "PLM service providers win based on their ability to respond flexibly and quickly to customer requests, to work independently and make decisions and recommendations that may be out of the scope of their contract, and to present a unified face to the client. Manufacturers want their service providers to function as an extension of the internal team that deeply understands their business and to be a strong cultural fit with their organization. When a relationship is established on this level, manufacturers are more confident that their service provider will be a reliable long-term partner."

The PLM market is maturing, and changing, quickly. Many of the service providers have similar offerings, are technically very strong, and have a focus on PLM. To help end users chose the right systems integrator in the PLM market for their business, IDC offers a sampling of the key takeaways:

Manufacturing Industry Expertise:  Look for service providers that have fully integrated teams and know your industry and business nuances.

A Road Map to the Product Innovation Platform:  Identify a service provider with the ability to evolve PLM into a product innovation platform – that is, the ability to connect PLM systems, processes, and data across the enterprise and value chain, leveraging 3rd Platform technologies.

Integration with Enterprise Quality: Quality management should be connected closely with PLM to facilitate engineering change orders and improve future products, and hence your service provider needs capability in this area.

Proactive Expertise/ Skills Development and Retention:  Find a service provider that has a track record of successfully mitigating the high attrition rate prevalent with some engineering and PLM services firms due to the competition for talent.

IDC MarketScape criteria selection, weightings, and vendor scores represent well-researched IDC judgment about the market and specific vendors.

IDC analysts tailor the range of standard characteristics by which vendors are measured through structured discussions, surveys, and interviews with market leaders, participants and end users.