Everest Group’s new findings are very positive for PO.
Investments in new technologies and buyer appreciation are driving the procurement outsourcing (PO) market forward reports Everest Group.Since 2007, the PO market has maintained an 18 percent compound annual growth rate in terms of Total Contract Value (TCV), and service providers are embracing expertise and technology driven strategies to maintain that double-digit pace.
Everest Groups new research Procurement Outsourcing Annual Report presents in-depth information on deal volume, contract value, service provider strategies and trends driving the market.
Key topics include:
- The PO market grew at 10 percent in 2012, reaching $1.72 billion in annualized contract value representing $220 billion in terms of managed spend.
- Contracts serving buyers in multiple continents are on the rise. Thirty-eight percent of the new TCV signed in 2012 has a global spread.
- The drivers for PO vary by process scope. Spend reduction is the main driver for outsourcing upstream sourcing activities while operational cost reduction is the main driver for the more transactional procure-to-pay scope.
- IBM and Accenture continue to lead the PO market with more than 50 percent market share (by ACV). Accenture, GEP, IBM, Infosys, Procurian, and Xchanging, accounted for nearly 90 percent of the TCV added in 2012.
