Tag: procurement outsourcing

Procurement Outsourcing Companies

Top 10 Procurement Outsourcing Companies in the World 2019

Procurement business process outsourcing (BPO) services are increasingly being adopted in numerous industries around the world. The world’s top procurement outsourcing companies have also witnessed a strong growth in their procurement BPO businesses driven by IT and technology advancement. Procurement BPO enables companies and organizations to align their business processes better and improve operational efficiencies. It also helps them to reduce operational cost and enhance supply chain management. Thanks to its series of benefits such as cost reduction, operational efficiencies, flexibility, industry expertise, and easy tracking and management, procurement outsourcing is gaining greater popularity in the global business environment.

What is Procurement BPO?

The procurement process is essential for all businesses. Whether it’s direct procurement (such as purchasing of materials or other goods and services for final product) or indirect procurement (such as purchasing of office equipment, utilities or marketing activities), all types of procurement processes require a relatively large amount of labour, time, and money. What’s more challenging in the procurement process is trying to maintain effective and efficient strategies with a constantly evolving marketplace. That’s where procurement business process outsourcing service steps in to address all these specific needs. In other words, procurement BPO is a third-party service to take care all the businesses’ needs during the procurement process, from identifying suitable suppliers all the way to the integrated supply chain management.

Key Benefits of Procurement BPO: Cost Reduction, Efficiency and Better Resources Allocation

Businesses who outsource their procurement processes can better allocate their resources and put more focus on their core business operations. Procurement BPO service providers can often bring purchasing expertise, while cutting down spending on projects that are not normally supported by in-house procurement teams. By using a procurement BPO service, companies can cut down on vendor spending and save cost on hiring full-time employees with the same expertise. Meanwhile, the collective expertise offered by procurement outsourcing companies can also help to save time and improve efficiencies, due to their scalability, flexibility, and management capability. This means the resources of the business, such as employees’ time and skills, can be put to better use in areas which directly contribute to the business growth. Therefore, cost reduction, efficiency and better resources allocation are some of the key benefits of procurement outsourcing services.

Global Procurement Outsourcing Market Overview

According the latest report from SpendEge, the global procurement business process outsourcing (BPO) market size (in terms of category spend) will grow by USD 4.32 billion from 2018 to 2022, registering a strong CAGR of over 17% during the forecast periods. The recent market trends have seen the growing adoption of automating BPO operations in the global procurement process, which allows service providers to significantly improve their sustainability in the market. Importance is being given to building reusable service delivery platforms and increasing scalability and automation by leveraging new software tools that quantify, manage, and control the implementation of a process within as well as between organizations.

SpendEge has been closely monitoring the latest procurement BPO market trends to create the best-in-class sourcing and procurement market intelligence solutions. These reports and solutions are designed to help our clients mitigate different types of procurement risks and develop effective strategies to optimize their sourcing and procurement excellence. Take a look at SpendEge’s BPO Services Industry Intelligence Library and download your free sample report now!

Top 10 Procurement Outsourcing Companies in the World 2019

Accenture

Accenture is currently a global leader in procurement BPO services. Accenture helps clients across a wide range of industries to develop effective procurement solutions. By supplementing their procurement capabilities with full suite of source-to-pay BPO services—supported by leading practices, innovative tools and Accenture’s Global Delivery Network—organizations can increase their control, generate savings, lower risk and improve their speed to value.

Accenture’s main services include: Analytics-as-a-Service, category and supplier enablement, contract lifecycle management, digital procurement, energy management, and supplier relationship management.

Infosys

Infosys is a world’s leading procurement outsourcing companies that is based in India. Infosys BPM sourcing and procurement outsourcing solutions help clients lower third-party spend and optimize procurement operations.

Infosys’ main offerings include: Category management and strategic sourcing, operational sourcing and tactical buying, and procurement operations and help desk.

IBM

IBM Procurement Services deliver a highly personalized, enriched user experience that can learn over time by accessing refined, real-time data. This allows for quicker, more informed decision-making and maximizing preferred suppliers. IBM global spend leverage and category expertise can optimize spend savings.

IBM’s main services include: Procurement Strategy and consulting, sourcing Services, purchasing and payables, and third-party risk management.

DXC Technology

DXC Technology’s Global Sourcing Optimizer leverages HANA-based computing to put robust analytics into the hands of financial controllers, buyers and other critical business users. It provides exceptional insight into how inflation affects sales and margins. Buyers can leverage these tools to make better decisions on where to buy, how much to purchase, and how to negotiate optimized pricing.

Capgemini

Capgemini’s Global Enterprise Model (GEM) offers an integrated service of the entire source-to-pay cycle. Each component of its solution targets a specific strategic objective, building a comprehensive procurement process throughout entire procurement lifecycle.

Capgemini’s main procurement services include: Strategic sourcing and category management, procurement operations.

Genpact

Genpact‘s procurement management solutions and outsourcing services are scalable across the S2P process and serve direct and indirect procurement teams. Genpact offers end-to-end procurement outsourcing solutions, enabled by its deep domain experience, advanced technology and strategic partnerships.

Tata Consultancy Services

TCS helps to effectively enhance and manage dynamic supply chain ecosystems by leveraging digital technologies and enabling data-driven insights to identify new proactive approaches and opportunities, driving informed, timely decisions. The TCS approach helps adopt and deploy emerging digital technologies as they mature to provide process improvements that deliver immediate value.

Wipro

Wipro’s procurement outsourcing services combines robotic process automation, business process as a service, analytics, and artificial intelligence along with their proprietary tool base to automate and consolidate processes. It helps organizations achieve higher success in sourcing & procurement process.

HCL Technologies

HCL’s sourcing and procurement solutions are facilitating cost reduction up to 50 percent as well as significant cycle time reductions by reimagining their sourcing and procurement processes. Its “Advisory & Execution” framework for supply chain transformation enables business process overhaul and significant savings in warehousing and costs related to the procurement process.

SYNNEX

SYNNEX is an IT supply chain services company offering services to various of industries such as manufacturing, software, and retail. SYNNEX strategic procurement is focused on providing reseller partners with the resources and services they need to deliver the best solutions to their clients, all while increasing their profitability and maximizing their business.

 

For more market insights about:
Global category spend
Category spend growth
Spend segmentation by region
Regional spend dynamics
Regional influence on global spend
Regional spend opportunity for suppliers

etc…

Check our Procurement Market Intelligence Report, or download your FREE report sample now!

Outsourcing services

Have Automation and AI put an End to the Era of Outsourcing Services?

The developed parts of the world have enjoyed lowered production cost and higher profits by outsourcing services from various operations like production and customer service. With countries such as China, India, and Bangladesh being the major outsourcing services hubs due to lower labor rates, companies have been able to lower their cost base considerably. On a similar note, automation and artificial intelligence (AI) have also significantly saved large chunks of the cost for the companies. As a result, many analysts and experts have predicted that the days of outsourcing services will be outnumbered soon enough, with automation and AI eating up numerous jobs. So does the rise of automation and AI bring down the curtain on outsourcing? In this article, we have explained the reasons for this question. 

How Automation and AI Impact Outsourcing Services?

Increasing Cost of Outsourcing Services

Although traditionally companies preferred outsourcing to save on labor costs, today the BPO’s charge higher fee for their services and add markups making those services expensive. Additionally, governments across the world also discourage companies from their outsourcing services and promote employment and production in home country instead. For instance, under the Obama administration, a $200 billion in tax relief and incentives law was put in place, which encouraged American companies to make an investment in their business and create new jobs. Other laws allowed businesses to write off all costs in new investment in equipment in the US.

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Loss of Control

When businesses outsource their operations, they contract the work to other company, which means sharing company details, information, and data. The company will be at the mercy of the BPO. Also, quality and service delivery from the BPOs may vary widely.

Supply Chain and Logistics Efficiency

Outsourcing services of manufacturing and production operations may seem lucrative at the beginning with all those cost savings opportunities. However, businesses may incur unanticipated costs such as hidden fees, import and export duties, shipping costs, haulage, freight costs, legislative costs, and additional taxes. Additionally, due to the complicated logistics network, the time-to-market is also significantrequest proposally increased. Consequently, businesses are looking to manufacture in the home country whenever possible by carrying out make-or-buy decisions.

Automation and AI

The most prominent factor that could signal the end of outsourcing services is the rising popularity of automation and AI. The technology is so advanced that it can eliminate the majority of human errors, and provide a quality output at a faster rate. Automation in manufacturing has been around for a long time. However, AI is threatening to replace service facing operations. For instance, with machine learning and cognitive computing abilities, companies can use chat-bots to solve customer queries and automatically reply to e-mails from the customer.


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Top 5 Trends in Digital Procurement

Procurement activities comprise a significant chunk of an organization’s cost and have a significant impact on the cost of the final product. As a result, organizations are looking for cost-saving measures to remain competitive in the marketplace. Digital procurement offers organizations a streamlined view of all their procurement process by eliminating redundant procurement steps and increasing the procurement process efficiency.

Organizations adopt digital procurement for the benefit it provides such as reducing the purchasing price, optimizing the procurement cost, bringing about internal process optimization, securing supplies, minimizing warehousing costs, and maintaining quality guidelines.

Here are the top 5 trends in digital procurement:

Automation in Procurement:

Automation technologies such as source-to-settle processes, procure-to-pay, e-procurement, and contract management have get in toucheliminated the need for constant human intervention by automating sourcing, procuring, and invoicing processes. With savings in time, even non-procurement professionals can handle the process, and help procurement professionals utilize their time in procurement strategy making. Requisition approvals, automated MRO re-orders, supplier profile maintenance, and purchase-to-pay (P2P) are among the most automated processes in digital procurement

Data Analytics in Procurement

Big data and analytics help the procurement organization to unlock the real value of data by gathering in-depth insights. Big data analytics help save significant time and cost for the procurement organizations by using predictive analytics, trend analysis, risk management, and category management. Applications such as vendor evaluation, spend analytics, and demand forecasting are some of the most popular applications to use data analytics in procurement.

Cloud based Digital Procurement for Small and Medium Sized Businesses

Digital procurement is certain to benefit the procurement organization, but it does come with a hefty price tag? Since digital procurement is moving from being a cost saving tool to a business essential, small and medium sized businesses are also finding ways to reap the benefits of digital procurement. Cloud-based platforms are gaining popularity among these organizations for their budget-friendly attribute.

Dedicated Procurement Systems for Large Organizations

Traditional digital procurement systems were designed with a one-size-fits-all mindset. But with exponential growth in transaction volume and increasing need complexity of each business and suppliers, they demand customized offerings out of these systems. For process efficiency and optimization, large organizations are shifting towards developing their own custom platforms.

Outsourcing it to the Experts

E-procurement isn’t one of the core competencies for many of the organization and may lack expertise in procurement, supply-chain, and logistical challenges. Many organizations now seem more reluctant to leave the complex digital procurement process to the experts and instead prefer outsourcing all their processes to ensure the smooth operation of the business.

Digital procurement is gaining popularity among procurement organizations with an increasing adoption rate. The future for digital procurement would be data driven, and organizations would have to adapt to a high level of automation so that their experts can focus their time on value-added strategic tasks.

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