This IDC study analyzes the market opportunity for business process outsourcing (BPO) for spare parts supply chain management (SCM). It also looks at lead logistics provider (LLP) opportunities associated with spare parts BPO. BPO in general, and spare parts supply chain management (SCM) in particular, is a growing opportunity within the federal government. Growth is expected to continue through 2008 and beyond, as more government agencies see the success of both Defense Department and civilian agency BPO efforts.

"BPO for SCM of spare parts is a growth opportunity in the Defense Department, and the opportunity is quickly expanding to civilian agencies and to the state and local government market space," says Shawn P. McCarthy, program manager, U.S. IT Opportunity: Government and Education. "However, the market will be dominated by large vendors that have the resources to build and manage global supply chain systems."