ISG Study: Procurement Technology Adoption to Increase in 2013
Sep 18, 2012 (Close-Up Media via COMTEX) --
A whopping 95 percent of procurement organizations are convinced that adoption of spend analysis tools, contract management software and P2P automation is vital for success, according to GEP Value Trends: Procurement Technology, a new research study conducted by Information Services Group (ISG), a technology insights, market intelligence and advisory services company, and GEP, a global provider of procurement services and technology.
According to a release, the study from ISG Research reveals that the use of vendor or supplier management applications is set to rise; in fact, ISG predicts that supplier management will be the hottest segment of the market in 2013.
Nearly 40 percent of companies surveyed are planning to implement a supplier management solution. Moreover, with increased focus on corporate governance, risk, and regulatory compliance, demand for such solutions will continue to expand over the next few years.
"Organizations need to integrate contract management and vendor management tools, with better standard controls on data entry and use to provide an enterprise view of vendor and contract risk and performance," said Michael Kushner, Director, Business Advisory Services, ISG.
The study also indicates that cloud-based SaaS models are gaining traction, but presently account for a relatively small portion of all procurement software installations.
"The economics of cloud-based models are compelling," said Neha Shah, Executive Vice President and Co-founder of GEP. "In addition to radically reducing infrastructure and support costs, our cloud-based eProcurement platform GEP Suite 5.0 is easy to deploy and use, and it integrates easily will all leading ERP and accounting systems. But what really distinguishes the GEP platform is the hands-on procurement experience that drives product design and development."
Research participants, mostly comprising CFOs and CPOs or their direct reports, were primarily based in North America, with 28 percent representing other geographies. Respondents included leaders from diverse sectors, such as financial services, healthcare and pharmaceuticals, manufacturing, energy, government and public sector, media and telecom, retail and travel, and transportation. Fifty-nine percent of participants were from businesses of more than $5 billion in annual revenue.
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