Procurement Outsourcing (PO) Service Provider Landscape - Investing in Building Expertise

5 Jul 2012

$2,999.00

INTRODUCTION

The Procurement Outsourcing (PO) market witnessed back-to-back strong growth in 2010 and 2011, with annual growth of 14%. The rapidly growing PO market attracted new entrants and also led to increased M&A activity. As the market matures, service providers are focusing on previously nascent themes, such as direct spend procurement, mid-market buyers, and global contract scope.

PEAK MatrixIn this research, we analyze the global PO service provider landscape in 2011, providing focus on:

Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix for PO 

SCOPE OF ANALYSIS

  • Third-party PO deals (Does not include shared services or captives)
  • Over 320 multi-process PO deals signed as of 2011, with a minimum of three procurement processes over US$1 million in ACV and a minimum contract term of three years. Typically, managed spend is greater than US$50 million
  • Coverage across 15+ PO service providers with multi-process capability, including Accenture, Capgemini, Corbus, DSSI, Genpact, GEP, HCMWorks, HCL, HP, IBM, Infosys, Optimum Procurement, Procurian, Proxima, TCS, Wipro, WNS, Xchanging, and Xerox

Scale of PO service providers 

CONTENT

This report examines the dynamics of the global PO service provider landscape and its impact on the PO market. Some of the findings in this report include:

  • Everest Group classifies 15+ PO service providers on the Everest Group PEAK Matrix into the three categories of Leaders, Major Contenders, and Emerging Players
  • Based on Year-on-Year movement of different service providers on the PEAK Matrix, Everest Group identified five service providers as the “2012 PO Star Performers”
  • Beyond the 2012 PO Star Performers, several service providers noticeably enhanced their positioning on the PO PEAK Matrix
  • We assessed the overall PO delivery capability by evaluating each service provider along four dimensions – scale, scope, technology, and delivery footprint. While the Leaders continue to dominate, Major Contenders have narrowed the gap on most dimensions
  • Mergers and acquisitions, new market entrants, focus on direct spend, SMB and mid-market focus, building end-to-end S2P capability, and integrated FAO-PO offerings were key trends that shaped the PO service provider landscape in 2011
 

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