Introduction:

The PO market in 2009 witnessed increased levels of interest and market activity. However, the average contract values dropped due to the adoption of a conservative approach given the prevailing uncertain economic conditions. In the longer term, Everest expects these buyers to grow the scope of their PO engagements and in turn fuel future market growth. With the global economy reviving, Everest predicts growth in excess of 20% for 2010 and expects the multi-process PO market to reach nearly US$1.3 billion in ACV

In this research study, we analyze the global multi process PO market in 2009. We focus on:

• Market size and buyer adoption trends
• PO value proposition
• Contract characteristics across process and category scope, technology, global sourcing and pricing structures
• Supplier evaluation and relative position on the Everest PEAK matrix
• 2009 PO Market Star Performers based on performance and capability building in 2009

The scope of analysis includes:

• Third-party PO deals; it does not include shared services or captives
• ~200 multi-process PO deals signed as of 2009 with a minimum of three procurement processes, over US$1 million in ACV, and a minimum contract term of three years
• Coverage across 15+ PO suppliers with multi-process capability including 4C Associates, Accenture, buyingTeam, Capgemini, Corbus, DSSI, Genpact, Global eProcure, HP, HCL, IBM, ICG Commerce, Infosys BPO, TCS, Wipro, WNS, and Xchanging
  

Content

This report will assist key stakeholders (buyers, suppliers, technology providers) understand the changing dynamics of the PO market and help them identify the trends and outlook for 2010. In this backdrop, this report provides comprehensive coverage of the global PO market including detailed analysis on market size and growth, buyer adoption trends, PO value proposition, contract characteristics and supplier landscape. Some of the findings in this report, among others, are:

• The PO market reached US$1.1 billion in ACV, representing roughly US$7.5 billion in booked PO business, managing over $140 billion of procurement spend for buyers
• Given the prevailing economic uncertainty in 2009, most buyers adopted a sourcing-centric approach to PO to generate quick savings and an attractive business case
• Companies are extensively leveraging the managed services model in combination with gain-sharing to provide skin-in-the-game for suppliers
• There is an emergence of several players offering SaaS as a delivery model
• As PO market matures, new players are entering the market and a third front is now emerging in the form of alliances and partnerships between P2P-focused and sourcing-focused suppliers
• Everest updated its classification of 15+ PO suppliers on the Everest Performance| Experience| Ability| Knowledge (PEAK) Matrix into the categories of Leaders, Major Contenders, and Emerging Players. The PEAK matrix is a framework to assess the absolute matrix success and overall capability of suppliers
• Everest identified five suppliers as the “2009 PO Market Star Performers” based on their relative movement on PEAK – Accenture, IBM, ICG Commerce, Infosys BPO, and TCS