Major Players Shape Up for RFID Battle, Says IDC

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According to a new study from IDC, large players such as Accenture, Capgemini, Deloitte, EDS, and IBM are positioning themselves to take a leading role in the emerging radio frequency identification (RFID) services sector. Success, according to IDC, will depend on the players' breadth and depth of RFID offering, strength in supply chain management (SCM) consultancy, and vertical market presence.

The services opportunity around implementing RFID technology can be divided into technical implementation and the consulting opportunity in achieving business value from RFID. The services opportunity is currently centered around technical implementation, but the associated consulting and integration services are likely to grow into a significant opportunity. RFID is also likely to trigger opportunities in areas such as supply chain reengineering.

"When comparing actual activity with the amount of attention given to RFID in the media, it has certainly been over-hyped lately," said Erik Bruin, research manager, IDC European Services. "The number of consultants working full time in RFID practices is small and vendors' revenues from RFID are currently very limited. But expectations are high and RFID is strategic for the large services vendors. The current situation is probably best described as a phase of positioning and building offerings and early references, in expectation of the market really taking off in the near future."

IDC's new study, RFID: Large Players Shape Up for Battle (IDC #SN07L, July 2004), analyzes and compares the RFID strategies of Accenture, Capgemini, Deloitte, EDS, and IBM. It also examines RFID trends and vertical market adoption patterns, and offers guidance for retailers, manufacturers, distributors, and service vendors.

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