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Technavio Announces Top Four Emerging Trends Impacting the Global Procurement Outsourcing Market Through 2019Technavio's latest report on the global procurement outsourcing market provides an analysis on the most important trends expected to impact the market outlook from 2015-2019. Technavio defines an emerging trend as a factor that has the potential to significantly impact the market and contribute to its growth or decline. The top four emerging trends driving the global procurement outsourcing market according to Technavio ICT research analysts are:
Increased adoption of third platform technology Social, mobile, analytics, and cloud adoption for outsourcing services are the next big thing in procurement outsourcing. Social media networking sites are creating awareness at three levels: creating awareness about the outsourcing services, influencing clients' opinions, and eventually leading to action. Social media is in effect, acting as an intermediary where stakeholders of procurement outsourcing can connect together for information sharing and settle procurement outsourcing contracts According to Amit Sharma, a lead analyst at Technavio for ITO and BPO sector, "Analytics plays an important role in procurement. The global procurement analytics market was valued at approximately USD 7.8 billion in 2014, which is expected to grow by 12%-15% year-over-year. The application of analytics in procurement also includes working capital optimization and profit recovery." Accenture (News - Alert), IBM, Fractal Analytics, Genpact, and WNS are some of the major vendors that are offering analytics services for procurement outsourcing. Increased adoption of procurement-as-a-service Globalization, changing business environments, and demand for low-cost IT solutions are some of the driving forces of the BPO industry. Vendors are providing flexile and agile technology solutions that can match their clients' business models and their customers' requirements. Procurement-as-a-service is acting as a catalyst in the BPO industry and provides end-to-end on-demand software solutions. It reduces firms IT investments as vendors are taking care of technology solutions through managed services with the support for procurement outsourcing. "Xchanging is providing a procurement-as-a-service that can meet clients' demands through integration of managed services and software solutions for procurement. It has developed MM4 platform for procurement services that is a combination of purchasing, sourcing, and intelligence and which is based on a procurement-as-a-service model," says Amit. Upsurge in market consolidation The global procurement outsourcing market is witnessing many M&A, which is leading to market consolidation. This strategy is beneficial for large corporations that are seeking ways to increase their market share. Many global firms such as IBM (News - Alert), Capgemini, Xchanging, and Accenture are increasing their market presence through inorganic growth. For instance, Accenture acquired Procurion in 2013, one of the leading vendors in the global procurement outsourcing market. IBM acquired Emptoris in 2011, which enabled the company to expand its services by offering e-sourcing and contract management solutions. GEP acquired Enporion in 2012, which helped the company in improving its strategic sourcing and e-procurement capability in utilities, manufacturing, and distribution. Inclusion of value added services With the commoditization of outsourcing services, it has become inevitable that the global procurement outsourcing market will ascend to the higher end of the value chain. In the present scenario, the outsourcing of business processes has become an enabler of innovation, simultaneously driving operational enhancements. BPO strategies are considered to be next-generation business-value propositions. Although, cost remains the utmost priority, clients are seeking innovation and value added features such as enhanced functionality. In recent years, procurement service providers have started to invest considerably in their procurement outsourcing offerings and are increasing their focus on areas such as spend analytics, procurement knowledge process outsourcing, and risk analytics, among others. Thus, with increasing market competition and improving financial environments, vendors are offering innovative solutions for procurement outsourcing. Browse Related Reports:
Purchase these three reports for the price of one by becoming a Technavio subscriber. Subscribing to Technavio's reports allows you to download any three reports per month for the price of one. Contact [email protected] with your requirements and a link to our subscription platform. About Technavio Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies. Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users. If you are interested in more information, please contact our media team at [email protected].
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