IDC Analyzes 14 Green Services Vendors

August 26, 2009 - According to the new research from IDC Manufacturing Insights, vendors can help manufacturers move faster toward green initiatives, allowing them to yield revenue growth as well as considerable cost savings. The report, titled "Vendor Assessment: Sustainability Strategy Services Guide for Manufacturers", provides technology services buyers with an analysis of 14 large professional service firms that provide strategy-level sustainability services to manufacturers. The companies that participated in the report include: Accenture, Atos Origin, Capgemini, Cognizant, Deloitte, Ernst & Young, HP, IBM, Infosys, KPMG, Logica, PwC, TCS and Wipro.

What's the bottom line? Current sustainability offerings are still emerging and areas exist for improvement.

"At this stage, many engagements are being handed to consultants that are already working closely with manufacturers," says Kimberly Knickle, practice director, Emerging Agenda, IDC Manufacturing Insights. "That doesn't mean they aren't skilled in sustainability, but that the evaluation process is not yet as rigorous as we expect it will become. Evaluations will receive more attention because of the increasing complexity and cost and the C-level visibility of sustainability projects. Being a partner to manufacturers and understanding their business will remain important, but we also see other factors increasing in importance, including an understanding of global and regional dynamics and project management, as projects touch an increasingly large number of participants."

IDC Manufacturing Insights found that the most important factors in the vendor selection process include the following:

- Investments to incorporate a comprehensive sustainability evaluation into services they already offer, such as adding carbon trade-offs to supply chain assessments or more comprehensive life-cycle assessment or ecodesign in product life-cycle management projects;
- Deep expertise in regional regulations or publicly influenced sustainability practices in a specific region;
- Strong knowledge of the dynamics in industry segments; for example, the cost, customer, and competitive pressures in the fast-moving consumer goods industry, and
- The ability to perform environmental audits or reviews using globally recognized standards such as GRI with feedback or recommendations of company or industry best practices.

As the sustainability services market expands, IDC Manufacturing Insights recommends that manufacturers should ensure a potential vendor's team has a deep knowledge of the firm's specific industry segment within manufacturing, as well as knowledge of the regulations in the regions the company operates, including the locations of suppliers and customers. In the short term, manufacturers should evaluate a vendor's sustainability services in the context of what is needed today. In the longer term, as the market continues to emerge, manufacturers should evaluate a vendor based on how sustainability is incorporated into many of its traditional offerings.

Click here to view a summary of the report.
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