Introduction

The research takes a close look at procurement outsourcing developments in the small but dynamic market of Australia / New Zealand (A/NZ). The report discusses buyer side drivers and challenges in the A/NZ region and also provides an assessment of the supplier landscape for PO in A/NZ including global suppliers serving the A/NZ region and local A/NZ suppliers. The report also includes an additional section on detailed profiles of the key PO suppliers in the A/NZ market.

This report will assist key stakeholders (i.e., buyers, suppliers, and technology providers) understand the changing dynamics of the A/NZ PO market and will help them identify value creation opportunities as well as identify potential risks involved.

Methodology and Scope

• In-depth interviews with global and local PO suppliers serving the A/NZ region including Accenture, Appian Procurement Services, Capgemini, Conexa, Converga, eVALUA, Fuji Xerox, Portland Group, Provade, and SourcingValue
• Executive-level interviews with existing/potential buyers of PO services in A/NZ (five detailed interviews)
• Leveraged Everest Research Institute’s proprietary database of 100+ multi-process PO contracts signed as of August 2007
• The scope includes third-party outsourcing contracts and does not include shared services or captives

Contents

This report examines the A/NZ PO market along two key dimensions: buyer side drivers and challenges in the A/NZ region and also provides a comprehensive assessment of the supplier landscape for PO in A/NZ. Each dimension is discussed in detail (and illustrated with supporting data and analysis) to provide the reader an in-depth and accurate overview with clear identification of the trends observed. For example, the PO supplier landscape section offers the following insights, among others:

• PO supplier landscape in A/NZ: The market is dominated by global majors that have bagged a few large deals in the region. However, only 4 of the 12 global PO players we surveyed are proactively targeting A/NZ based organizations. Besides the global majors, local players are also catering to the A/NZ market.
• Share and scale: The Australian P2P market is dominated by the global majors that have bagged few large deals in the region. However, even their scale is small and reflects the nascent nature of the market. A number of niche suppliers are also expanding their presence in the market
• Buyer segment focus: The current client base is strongest in global manufacturing companies with A/NZ operations, and there is increasing traction in the financial services segment. Market segmentation by buyer size is visible, though overall client concentration is higher in the large buyer segment
• Technology: Most players are building their technology capability through a combination of alliances with technology vendors and proprietary tools. Domestic A/NZ suppliers have developed significant depth in a few chosen areas but lack the breadth of global suppliers.