AI, Automation Boost Interest in Procurement PlatformsApr 4th, 2022 11:15 EST
STAMFORD, Conn.–(BUSINESS WIRE)–Investments in automation and AI over the past year have made procurement software platforms even better for transforming enterprises’ procurement operations, according to a new report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.
The 2022 ISG Provider Lens™ Procurement Software Platforms and Solutions Global Report finds that for enterprises around the world, implementing advanced software platforms remains a popular first step toward making procurement more efficient and sustainable. Since last year’s report, automation and AI capabilities have expanded significantly, bringing more advanced machine learning, automation of entire processes and AI that further reduces the need for human labor.
“Pandemic disruptions continue to drive large and midmarket enterprises to re-think and re-invent sourcing and procurement,” said Shahid Batty, director, Global Business Operations, at ISG. “For most procurement organizations in most markets, adopting a modern software platform is the first step toward eventual digital business transformation.”
Software modernization may be an attractive path for enterprises that choose not to outsource, the report says. By implementing a comprehensive software platform, firms can achieve the scope of improvement available through business process outsourcing (BPO) while retaining responsibility and control over critical business operations. In addition, leading platform vendors offer a modular approach that lets clients make a series of tactical improvements that deliver immediate value while building toward long-term procurement transformation.
For midmarket firms, which face especially urgent challenges, new software platforms often play a larger role in the overall reinvention of procurement, ISG says.
“Many midmarket companies face the same disruptions as larger firms, but with fewer resources,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “They need to make improvements sooner due to greater economic pressures.”
The report also includes insights on other aspects of the evolving procurement landscape, including growing challenges faced by leading providers that could affect their ability to serve clients.
The 2022 ISG Provider Lens™ Procurement Software Platforms and Solutions Global Report evaluates the capabilities of 29 providers across two quadrants: Software Platforms and Solutions for Large Accounts, and Software Platforms and Solutions for the Midmarket.
The report names Corcentric, GEP, Ivalua, JAGGAER, SAP Ariba and Tradeshift as Leaders in both quadrants. Coupa, Oracle and Zycus are named Leaders in one quadrant each.
In addition, Zycus is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant.
The 2022 ISG Provider Lens™ Procurement Software Platforms and Solutions 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., 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.
ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 800 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.