Introduction

Technology plays a much more invasive role in FAO solutions today. Buyers realize that effective use of technology can help unlock significant value, and suppliers are leveraging technology to create differentiated position in the market.

The objective of this study is to uncover the mystery surrounding these technology-led offerings in FAO. In this study we focus on:

• The different flavors of technology in FAO
• Add-on tools and solutions that enable technology augmentation
  
  

• The current landscape of platform-based FAO offerings

The scope of analysis includes:

• Exclusive survey on technology-led offerings of established FAO suppliers
• Executive-level interviews with buyers and suppliers of FAO services
• Proprietary Everest database of nearly 380 multi-process FAO contracts

Contents

This report examines the technology-led offerings in FAO and provided in-depth analysis of the different flavors of technology offerings in FAO, add-on tools and solutions that enable technology augmentation, and current landscape of platform-based FAO offerings. The report provides the reader with an accurate overview and clear identification of trends observed. For example, throughout the report key findings are shared, including the following, among others:

• Suppliers made considerable investments in creating technology-led FAO solutions. A number of recent M&As and partnerships in the FAO market were driven by the need for expanded technology capability
• Suppliers try to variabilize the cost of technology through transaction pricing or by bundling technology costs in FTE pricing
• Supplier-provided tools serve as “add-ons” around the periphery of the existing buyer systems to address specific gaps or business issues in the existing technology landscape
• Though platform-based FAO promises significant value creation potential for buyers, there are several hurdles in its adoption. The top three challenges are stakeholder alignment, solutioning, and ERP sunk costs