Partnerships Will Expand Opportunities for eLogistics and eCustomer Care Service Providers, IDC Says

FRAMINGHAM, MA – MAY 8, 2001- eLogistics service providers and ecustomer care service providers may be able to glean several advantages by forming partnerships with each other. According to IDC, however, both types of service providers incorrectly believe they are competing with each other and will have to change their thinking before they pursue partnering opportunities.

 

The misconception stems from the fact that elogistics service providers have been expanding aggressively to offer integrated front-end capabilities, including customer care services. At the same time, ecustomer care companies have been busy developing capabilities in back-end fulfillment capabilities.

"Such integration and expansion of each group of service providers into the other’s service offerings appears to be an overlap and duplication of efforts. However, the breadth and depth of these services show that service offerings that cross traditional boundaries are offered more in support of and bundled together with core services rather than as standalone services," said Brian Bingham, senior analyst for IDC’s eCustomer Care Services research program. "This means that elogistics and ecustomer care service providers are not really competing for the same group of customers and significant opportunity exists for players that develop extensive competencies in each discipline."

IDC believes one way for service providers to get the skills in each discipline is through the formation of partnerships. Additionally, IDC thinks these partnerships will create advantages and open opportunities for each type of service provider. The advantages include access to more robust and scalable skills as well as access to a new customer base. The opportunities will arise from improved alignment with customer demands.

"Companies with ebusiness practices want integrated operational platforms. They want to work with one service provider who can bring together and offer an integrated solution that spans several segments of the ebusiness life cycle rather than work with several different providers," said Romala Ravi, senior analyst for IDC’s eLogistics research program. "By forming partnerships with each other, elogistics and ecustomer care service providers will have the skills needed to meet customer expectations and will improve their long-term competitive positioning."

IDC’s new bulletin The Marriage of Customer Care and Logistics Services: Addressing the eBusiness Life Cycle (IDC #B24315) explores how the maturation of ebusiness has changed the partnering and market opportunities for elogistics and ecustomer care service providers. The bulletin fully explains elogistics and ecustomer care and looks at the outsourcing opportunity in each area. Revenue forecasts are provided through 2004. Factors driving and inhibiting the need for ecustomer care and elogistics outsourcing are also examined. The bulletin ends with recommendations for these types of service providers thinking about entering partnerships.

To purchase this bulletin, contact Jim Nagle at 1-800-343-4952, extension 4549, or at jnagle@idc.com. For more information about IDC’s eLogistics or eCustomer Care research programs, contact Jill Toole at jtoole@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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