Introduction

Procurement Outsourcing (PO) has generated immense interest in the BPO market as a solution to help companies realize savings and create bottom-line impact. Today PO service providers manage more than US$140 billion of spend for their clients. As the PO market grows and matures, new players enter the market while the existing players strengthen their position, thus making the PO supplier landscape increasingly dynamic. In 2009, several partnerships were announced between segment-focused suppliers in an attempt to enhance their end-to-end Source-to-Pay (S2P) capability. Other investments especially technology related (like the launch of platform-based PO offerings) as well as building category expertise have come to the fore.

In this study, we analyze the global multi-process PO supplier landscape in 2009. We focus on:

• Types of PO suppliers and characteristics of different supplier segments
• Supplier evaluation and relative position on the Everest PEAK matrix
• Changes to global supplier landscape in 2009
• Key areas of investments by suppliers

Scope and methodology

• Third-party PO deals; it does not include shared services or captives
• ~200 multi-process PO deals signed as of 2009 with a minimum of three procurement processes, over US$1 million in ACV, and a minimum contract term of three years
• Coverage across 15+ PO suppliers with multi-process capability including 4C Associates, Accenture, buyingTeam, Capgemini, Corbus, DSSI, Genpact, GlobaleProcure, HCL, HP, IBM, ICG Commerce, Infosys BPO, TCS, Wipro, WNS and, Xchanging

Content

This report will assist key stakeholders (buyers, suppliers, technology providers) understand the changing dynamics of PO market supplier landscape and help them identify market leaders, major contenders, emerging players, and the star performers coming out of 2009. In this backdrop, this report provides comprehensive coverage of the global PO supplier landscape including detailed analysis on market shares, capability assessment, landscape movement in 2009, and supplier landscape by type of core offering and segment focus. Some of the findings in this report, among others, are:

• The PO supplier landscape shows a three-way division by type of core offering – sourcing-focused suppliers, transactional or P2P-focused suppliers and end-to-end S2P suppliers. Accenture and IBM are the only two suppliers with truly global end-to-end PO capabilities. However, more recently, the PO market witnessed a number of alliances and partnerships between P2P-focused and sourcing-focused suppliers (like ICG Commerce – Genpact, TCS-Denali, Steria-HPI, Wipro-Ariba, and HP-GlobaleProcure). Capgemini acquired IBX and launched a broader S2P offering. The supplier landscape is also expanding with the entry of new players such as OPI and Steria
• There are 15+ suppliers with established multi-process FAO capability. Everest classifies the PO supplier landscape into leaders, major contenders, and emerging players on the Everest Performance| Experience| Ability| Knowledge (PEAK) Matrix. Clear leadership positions have been established by Accenture, IBM, and ICG Commerce, but there is a large group of major contenders constituted by a number of sourcing-focused players (4C Associates, buyingTeam, GlobaleProcure, and Xchanging) and P2P-focused players (Capgemini, Corbus, Genpact, HP, Infosys, TCS, Wipro, and WNS) that has intensified competition in the market
• Everest identified five suppliers as the “2009 PO Market Star Performers” – IBM, Accenture, ICG Commerce, Infosys BPO, and TCS. We chose these five suppliers based on the relative movement of 15+ PO suppliers on the Everest PEAK matrix from 2008 to 2009. We assessed PO capabilities of suppliers across scale, expertise, technology, and delivery footprint