Companies worldwide are investing in
software to make procurement workflows resilient against price,
supply and geopolitical challenges, ISG Provider Lens™ report
says
Enterprise investments in procurement software are still rapidly
accelerating three years after the COVID-19 pandemic significantly
disrupted the way companies procure goods and services, according
to a new research report published today by Information Services
Group (ISG) (Nasdaq: III), a leading global technology research and
advisory firm.
The 2023 ISG Provider Lens™ global Procurement Software
Platforms and Solutions report finds that large and midsize
enterprises increased investments in procurement platforms by
between 20 percent and 30 percent in 2022, roughly the same pace as
in the previous two years. Software spending outpaced the growth of
procurement outsourcing and transformation services, partly because
most companies acquire a software platform as the first step in
procurement modernization, ISG says. While some organizations
expect to implement the software on their own, most will find they
need to work with service providers, ISG says.
“The disruption and subsequent changes in business and supply
chains since the start of the pandemic have made procurement much
more complex and unpredictable,” said Scott Furlong, partner and
leader of ISG Global Business Operations. “We expect continued
growth in procurement platforms and services as companies adapt to
new conditions.”
Pandemic-era crises laid bare for many organizations how much
the pricing and availability of critical goods could affect their
ability to do business, ISG says. Supply chains have improved since
the massive delays and shortages in the depths of the pandemic, but
they have not yet fully recovered. Inflation, interest and exchange
rate volatility and political tensions continue to disrupt
procurement for many companies.
Leading procurement platforms help companies prepare for and
respond to changes by providing more uniformity of data, user
experience and connections to related functions such as finance and
supply chain management, the report says. They also enable
operations management practices that can streamline procurement and
reduce operational costs.
Procurement platforms are advancing most rapidly in intelligent
automation tools that use AI and machine learning, the report says.
These features not only accelerate processes but also improve
accuracy through error checking and data cleansing. Platform
vendors and service providers plan to automate almost all of
clients’ procurement operations in the next three years, ISG
says.
“Intelligent automation lets companies offload basic evaluations
and decision making,” said Jan Erik Aase, partner and global
leader, ISG Provider Lens Research. “This allows procurement
organizations to focus on innovation to meet the next
challenge.”
The report also explores other global procurement trends,
including the use of low-code/no-code development tools and the
growing importance of change management in procurement
transformation.
For more insights into the procurement challenges faced by
organizations, plus advice on taking a more holistic view of the
role of procurement platforms, see the ISG Provider Lens™ Focal
Points briefing here.
The 2023 ISG Provider Lens™ global Procurement Software
Platforms and Solutions report evaluates the capabilities of 34
providers across two quadrants: Software Platforms and Solutions —
Large Accounts and Software Platforms and Solutions —
Midmarket.
The report names Corcentric, Coupa, GEP, Ivalua, JAGGAER, SAP
Ariba, Tradeshift, Workday and Zycus as Leaders in both quadrants.
It names Infor and Oracle as Leaders in one quadrant each.
In addition, Basware and Medius are named as Rising Stars —
companies with a “promising portfolio” and “high future potential”
by ISG’s definition — in one quadrant each.
A customized version of the report is available from GEP.
The 2023 ISG Provider Lens™ global Procurement Software
Platforms and Solutions 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., Canada, Brazil,
the U.K., France, Benelux, Germany, Switzerland, the Nordics,
Australia and Singapore/Malaysia, 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.
About ISG
ISG (Information Services Group) (Nasdaq: III) is a leading
global technology research and advisory firm. A trusted business
partner to more than 900 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 1,600
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230414005264/en/
Press Contacts: Will Thoretz, ISG +1 203 517 3119
will.thoretz@isg-one.com Julianna Sheridan, Matter Communications
for ISG +1 978-518-4520 isg@matternow.com
Information Services (NASDAQ:III)
Historical Stock Chart
From Feb 2024 to Mar 2024
Information Services (NASDAQ:III)
Historical Stock Chart
From Mar 2023 to Mar 2024