Procurement Outsourcing (PO) – PO Service Provider Landscape with PEAK Matrix™ Assessment 2015

14 Sep 2015
by Rajesh Ranjan

$2,999.00

Introduction

The global multi-process PO market continued its robust growth of 12% in 2014. The year witnessed significant contractual activity with 98 new contracts. The PO service provider landscape is evolving, as players continue to invest in technological tools and new-age technologies. With the increasing focus on innovation, technologies, such as advanced/cognitive analytics, RPA, mobile solutions, and automation, will provide a competitive edge in the future.

In this research, we analyze the PO service provider landscape across various dimensions:

  • 2015 PO PEAK Matrix and Star Performers
  • Service provider delivery capability assessment
  • Everest Group analysis on service providers
  • PO market share analysis

 PEAK Matrix

The scope of analysis includes:

  • Third-party PO deals; it does not include shared services or Global In-house Centers (GICs)
  • Over 1,100 multi-process PO deals signed as of 2014, 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 18 PO service providers with multi-process capability, namely Accenture, Aegis, Aquanima, Capgemini, Genpact, GEP, HCL, HCMWorks, HP, IBM, Infosys, Optimum Procurement, Proxima, TCS, Tech Mahindra, Wipro, WNS, and Xchanging
  • Global survey and one-on-one executive-level buyer interviews to understand how organizations perceive their PO engagements

 PO Market Share

Content

The report analyses the performance of various service providers of PO along six dimensions and includes:

  • 2015 PO PEAK Matrix and Star Performers
    • Everest Group classified 18 PO service providers on Everest Group’s proprietary PEAK Matrix framework into:
      • Leaders: Accenture, GEP, IBM, and Infosys
      • Major Contenders: Aquanima, Capgemini, Genpact, HCMWorks, HP, Proxima, Tech Mahindra, Optimum Procurement, TCS, Wipro, WNS, and Xchanging
      • Aspirants: Aegis and HCL
    • Based on YoY movement of different service providers on the PEAK Matrix, Everest Group identified three service providers as the “2015 PO Market Star Performers” – Accenture, GEP, and IBM
  • Everest Group analysis on service providers
    • We assessed the overall PO capability of service providers by evaluating them along six dimensions – market success, scale, scope, technology & innovation, delivery footprint, and buyer satisfaction levels
  • PO market share analysis
    • The PO market is concentrated in the hands of a few large players. IBM and Accenture are invariably the top two players in almost all segments and control almost 50% of the market share
    • The top players have exposure to a wider array of buyer segments, while the other players focus largely on the large- or mid-market segment
    • IBM, Accenture, and Xchanging accounted for more than 65% of the new contracts signed in 2014

Everest Group has a complimentary four-page PEAK Matrix preview document for this service provider landscape report.

 

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