LONDON--(BUSINESS WIRE)--SpendEdge has been monitoring the global IT consulting industry and the industry is poised to experience spend growth of over USD 20 billion between 2019-2024 at a CAGR of more than 2% during the forecast period. Request Free Sample Pages.
Read the 116-page research report with TOC and LOE on "The Global IT Consulting Industry – Procurement Intelligence Report, Pricing Outlook in Geographies that include APAC, North America, South America, and MEA, top suppliers, supplier selection and negotiation strategies, and insights into best practices to optimize procurement spend."
Digitization is gaining prominence across sectors such as logistics, chemical, and energy owing to its functionality in optimizing buyer’s operational costs in these sectors. This is creating the requirement to engage with IT consulting service providers who can advise on the sourcing of appropriate and cost-effective cybersecurity and customized ERP solutions to handle the organization's operations. This is driving spend momentum in the IT consulting industry.
In Europe, the growing focus of buyers in the automotive, logistics and renewable energy industries on improving their IT infrastructure for accounting and resource planning activities is favoring demand growth in the IT consulting industry.
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Factors that will drive procurement expenses in the IT consulting industry
- Lack of experienced resources in this fiercely competitive marketplace is driving salaries for consultants who are experts in new technologies such as blockchain. This is propelling suppliers’ OPEX which is exerting an inflationary impact on buyer’s procurement expense in the IT consulting industry.
- The ability to design and implement customized software for buyers is offering the leading IT consulting service providers the liberty to charge high service costs.
Insights into category management strategies that will help buyers optimize their procurement spend
Optimizing procurement spend does not stop at getting the product from suppliers at reduced rates. Most of the buyers in the IT consulting industry fail to realize that an impactful supplier relationship management is crucial to create avenues to save costs in the long run and also to facilitate effective category management in a market that is characterized by price dynamism.
Engage in long-term contracts with suppliers
Buyers are advised to enter into long-term strategic partnerships with IT consulting suppliers using the retainership model to gain value-added benefits such as complimentary services based on the duration of engagement and nature of relationship shared with suppliers. Long-term engagements facilitate mutually beneficial outcomes, as they encourage suppliers to work on a risk/reward sharing basis while buyers maximize their value from their procurement spend.
Design strong KPIs to evaluate suppliers' performance
Buyers should define parameters to assess the performance of suppliers. This will help them to identify inefficiencies and enhance the quality of services. The average time taken to identify and mitigate risks, average post-project evaluation score, the percentage of required reports delivered on time, percentage of resource utilized, and percentage of the variance between budget and actual procurement spend are some key KPIs for buyers.
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Some of the key topics covered in this report are:
- IT consulting industry spend segmentation by region
- Total cost of ownership analysis in the IT consulting industry
- Regional spend opportunity for IT consulting suppliers
- IT consulting suppliers cost structure
- IT consulting pricing models analysis
- IT consulting procurement best practices
- Category management objectives
- Cost saving opportunities in the IT consulting industry
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