New study says procurement technology adoption to jump in 2013
CLARK, N.J., Sept. 12, 2012 /PRNewswire/ — A whopping 95% of procurement organizations are convinced that adoption of spend analysis tools, contract management software and P2P automation is vital for success, according to GEP Value Trends: Procurement Technology, a new research study conducted by Information Services Group (ISG) (NASDAQ: III), a leading technology insights, market intelligence and advisory services company, and GEP, a leading global provider of procurement services and technology. The study is available for download here.
The study from ISG Research reveals that the use of vendor or supplier management applications is set to rise; in fact, ISG predicts that supplier management will be the hottest segment of the market in 2013.
Nearly 40 percent of companies surveyed are planning to implement a supplier management solution. Moreover, with increased focus on corporate governance, risk, and regulatory compliance, demand for such solutions will continue to expand over the next few years.
“Organizations need to integrate contract management and vendor management tools, with better standard controls on data entry and use to provide an enterprise view of vendor and contract risk and performance,” said Michael Kushner, Director, Business Advisory Services, ISG.
The study also indicates that cloud-based SaaS models are gaining traction, but presently account for a relatively small portion of all procurement software installations.
“The economics of cloud-based models are compelling,” said Neha Shah, Executive Vice President and Co-founder of GEP. “In addition to radically reducing infrastructure and support costs, our cloud-based eProcurement platform – GEP Suite 5.0 – is easy to deploy and use, and it integrates easily will all leading ERP and accounting systems. But what really distinguishes the GEP platform is the hands-on procurement experience that drives product design and development.”
Research participants, mostly comprising CFOs and CPOs or their direct reports, were primarily based in North America, with 28 percent representing other geographies. Respondents included leaders from diverse sectors, such as financial services, healthcare and pharmaceuticals, manufacturing, energy, government and public sector, media and telecom, retail and travel, and transportation. Fifty-nine percent of participants were from businesses of more than $5 billion in annual revenue.
GEP Value Trends: Procurement Technology is the second in a series of three research reports from ISG Research and GEP, which provides a comprehensive insight into the challenges and opportunities encountered by procurement professionals. GEP Value Trends: Procurement Strategy, the first report of the series, was released recently, while GEP Value Trends: Procurement Outsourcing, the third part, will be released next week.
About Information Services Group
Information Services Group (NASDAQ: III) is a leading technology insights, market intelligence and advisory services company, serving more than 500 clients around the world to help them achieve operational excellence. ISG supports private and public sector organizations to transform and optimize their operational environments through research, benchmarking, consulting and managed services, with a focus on information technology, business process transformation, program management services and enterprise resource planning. Clients look to ISG for unique insights and innovative solutions for leveraging technology, the deepest data source in the industry, and more than five decades of experience of global leadership in information and advisory services. Based in Stamford, Conn., the company has more than 700 employees and operates in 21 countries.
GEP is a diverse, creative team of people passionate about procurement. We invest ourselves entirely in our client’s success, creating strong collaborative relationships that deliver extraordinary value year after year. We deliver practical, effective procurement services and technology that enable procurement leaders to maximize their impact on business operations, strategy and financial performance. Named a category leader in procurement outsourcing by the Black Book of Outsourcing, a Star Performer in Everest Group’s Peak Matrix of service providers, and to the Supply & Demand Chain Executive 100 for seven years, GEP is also ranked as one of the Fastest Growing Technology Companies in Deloitte’s Technology Fast 500. Clark, NJ-based GEP has eight offices and operations in North and South America, Europe and Asia. To learn more, please visit www.gep.com.