STAMFORD, Conn.--(BUSINESS WIRE)--Enterprises are embracing providers of procurement platforms to help make their processes more efficient and cost effective as they contend with pandemic-related challenges and an increasingly complex operating environment, according to a new report published today by Information Services Group (ISG) (Nasdaq:III), a leading global technology research and advisory firm.
The 2021 ISG Provider Lens™ Procurement Platforms Global Report finds leading providers of procurement platforms and services expanding their offerings to accelerate the digital transformation customers are demanding coming out of the pandemic.
COVID-19 has interrupted supply chains and disrupted cash flow, and the advent of cloud-based digital business requires more complex procurement systems and environments, the report adds. Business activities in many markets are now requiring more goods and services from a growing number of suppliers, increasing the number of rules and contracts that need to be managed.
“These changes are triggering the need to transform procurement into something more agile, anticipatory and responsive, while also increasing the difficulty of managing procurement processes,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “The pandemic has made the goals of efficiency, cost reduction and risk aversion more challenging to achieve.”
The report sees procurement platform providers investing in software interoperability, especially through application programming interfaces, improved master data management and improvements in user experience. Many providers are adding professional service offerings, including the integration of procurement systems, data and functions with finance and HR services.
Even procurement platform providers that have close partnerships with leading procurement business process outsourcing and transformation services providers are themselves investing in professional services to offer more value to clients and foster deeper and broader customer relationships, the report says. Platform providers are primarily investing in change management and business process redesign.
Procurement platform providers tend to go to market with a value proposition that focuses on immediate savings for customers, the report adds. Some platform providers strongly emphasize business outcome improvements, operational efficiencies and return on investment as creating the means for customers to finance investments in their platforms.
Procurement platform providers operate in an enterprise IT environment where software and services are increasingly intertwined. This trend is resulting in partner ecosystems that increasingly rely on co-selling, co-delivering and co-managing. Consequently, selecting and managing providers has become more complex and challenging for enterprise customers.
In addition, the report sees providers moving to expand the scope of their own platforms and services by investing in various forms of AI, including robotic process automation and machine learning. The most common applications of these are seen in analytics and in functional automation such as in catalog management to identify suppliers and to reduce time and errors.
The 2021 ISG Provider Lens™ Procurement Platforms Global Report evaluates the capabilities of 23 providers in one quadrant: Procurement Optimization and Transformation Platforms and Tools.
The report names Concentric, Coupa, GEP, iValua, JAGGAER, Oracle, SAP Ariba/Fieldglass and Tradeshift as Leaders in the quadrant.
In addition, Proactis was named a Rising Star—a company with a “promising portfolio” and “high future potential” by ISG’s definition.
A customized version of the report is available from GEP.
The 2021 ISG Provider Lens™ Procurement Platforms Global Report is available to subscribers or for one-time purchase on this webpage.
About ISG Provider Lens™ Research
The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Germany, Switzerland, the U.K., France, the Nordics, Brazil and Australia/New Zealand, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.
A companion research series, the ISG Provider Lens Archetype reports, offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.
ISG (Information Services Group) (Nasdaq:III) is a leading global technology research and advisory firm. A trusted business partner to more than 700 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.