Procurement
technology is playing an important role in driving the Procurement Outsourcing
(PO) market as organizations strive to transform their procurement process to
take advantage of the business benefits and lower costs of global sourcing.
The
PO technology landscape is aligned to the two broad divisions in the PO market, namely sourcing and Procure-to-Pay (P2P). The
market is primarily served by packaged solutions like ERP and
procurement-specific Commercially-Off-The Shelf (COTS) products. PO suppliers are also investing aggressively in
developing technology capabilities to deliver sustainable cost savings to their
clients.
The
research is based on two key information sources
Proprietary Everest
database of 130+ multi-process PO contracts
signed as of November 2008
Capability fact-pack
of 18 PO suppliers including Accenture, buyingTeam, Capgemini, Corbus, DSSI,
Genpact, Global eProcure, HCL, EDS (an HP company), Hubwoo, IBM, ICG Commerce,
Infosys, Surestock, TCS, Wipro, WNS, and Xchanging
Contents
The
focus of this research study is to analyze the evolving global PO technology landscape and analyze the following
perspectives:
Role of technology in
PO
Technology landscape
in PO
Implications for key
stakeholders, including PO buyers and
suppliers
Each dimension is discussed in detail to provide the
reader an in-depth and accurate overview of the supplier trends in the PO technology market. For example, the section on technology
landscape in PO offers the following insights,
among others:
The technology landscape of a PO contract typically involves an
underlying ERP solution along with a set of procurement-focused applications
that could include both procurement specific COTS products and PO supplier’s proprietary tools
SAP, Oracle, and Ariba have emerged as the leading S2P technologies
though nearly 65% of PO buyers continue to
have a fragmented S2P technology landscape
Procurement-specific COTS (like Ariba and Emptoris) and proprietary
technologies play a more prominent role in PO
engagements as compared to HRO and FAO engagements. While ERPs like SAP
continue to dominate the P2P space, procurement-specific COTS like Emptoris and
Ariba have a stronghold in the sourcing space
The procurement technology vendor landscape has also been actively
involved in acquisitions and partnerships (with PO
suppliers and other technology vendors). The market has seen the emergence of
several players offering SaaS as a delivery model
Top PO
suppliers are building out their technology offerings through acquisitions and
partnerships with procurement technology vendors. PO suppliers are also
developing PO-specific proprietary tools/technologies; platform-based PO
offerings are also emerging
Note: this report is from 2012. See our most recent R2R research report.
The Finance & Accounting (F&A) function comprises three end-to-end processes – Procure-to-Pay (P2P), Order-to-Cash (O2C), and Record-to-Report (R2R). This report focuses on…