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Disruptions Drive Australian Firms to Seek Support From Procurement Service Providers

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ISG Provider Lens™ report indicates that Australian enterprises are increasingly seeking support for procurement transformation amid challenges caused by the COVID-19 pandemic. Many firms face heightened risks due to poor procurement capabilities. The report suggests a shift toward BPO services as organizations aim to optimize operations. Notably, Accenture, IBM, and Infosys are recognized as Leaders in this space. The demand for sustainable procurement is also rising, although Australia lags behind the U.S. and Europe in this regard.

Positive
  • Australian companies are increasingly adopting BPO for procurement, driven by pandemic challenges.
  • The report names Accenture, GEP, IBM, and Infosys as Leaders in procurement services.
  • Rising interest in procurement sustainability indicates a growing market trend.
Negative
  • Australian enterprises have been slower to adopt BPO services compared to global counterparts.

ISG Provider Lens™ report finds enterprises inspired to re-invent procurement through BPO, transformation services as COVID-19 reshapes market

SYDNEY--(BUSINESS WIRE)-- Under pressure from the effects of the COVID-19 pandemic, many Australian enterprises are engaging service providers to help transform their procurement operations for the first time, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2022 ISG Provider Lens™ Procurement BPO and Transformation Services Report for Australia finds that in the wake of recent disruptions, companies with poor supply chain and procurement capabilities now face significant risk of business failure. The pandemic drastically changed the procurement landscape in Australia, as lockdowns, closed borders, remote work and increasing risk made operations more difficult and strategic planning harder than ever.

“The unpredictability of supply, demand and financial indicators will reverberate throughout the Australian market in the foreseeable future,” said Harald Joss, director, Global Business Operations, for ISG in Australia.

Australian companies have been slower than those in other countries to seek BPO services for procurement, due to long-term indecisiveness about BPO in general, the report says. They have shown greater interest in transformation services, given their overall need to optimize and digitalize business operations.

ISG predicts procurement organizations in Australia will begin to migrate toward BPO, following the adoption of BPO for other functions such as finance and HR. One reason: Market bubbles, created by both competition for skilled resources and changing relationships with key sourcing markets such as China, have made procurement skills more expensive.

“Faced with unprecedented challenges, Australian enterprises are turning to both BPO and transformation service providers to maximize limited procurement resources,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research.

Enterprises are also scrambling to make procurement more sustainable, though they have been more insulated from this requirement than their U.S. or European counterparts, ISG says. The report contains additional insights on this trend and others, including the impact of complex supplier contracting models in Australia.

The 2022 ISG Provider Lens™ Procurement BPO and Transformation Services Report for Australia evaluates the capabilities of 18 providers across two quadrants: BPO Services and Digital Transformation Services.

The report names Accenture, GEP, IBM and Infosys as Leaders in both quadrants and Genpact and PwC as Leaders in one quadrant each.

In addition, ArcBlue and Canon Business Services are named Rising Stars — companies with “promising portfolios” and “high future potential” by ISG’s definition — in one quadrant each.

A customized version of the report is available from GEP.

The 2022 ISG Provider Lens™ Procurement BPO and Transformation Services Report for Australia is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens™ Research
The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

A companion research series, the ISG Provider Lens Archetype reports, offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.

About ISG
ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 800 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

Will Thoretz, ISG

+1 203 517 3119

will.thoretz@isg-one.com

Erik Arvidson, Matter Communications for ISG

+1 617 755 2985

isg@matternow.com

Source: Information Services Group, Inc.

FAQ

What does the ISG Provider Lens report say about procurement in Australia for 2022?

The ISG Provider Lens report highlights a shift towards procurement transformation and BPO services among Australian enterprises in response to COVID-19 challenges.

Who are the Leaders identified in the ISG Provider Lens Procurement report for Australia?

The report identifies Accenture, GEP, IBM, and Infosys as Leaders in the BPO and Procurement Transformation Services sectors.

How has COVID-19 affected procurement operations in Australia according to ISG?

COVID-19 has increased risks for Australian enterprises with poor procurement capabilities, prompting a reevaluation of their procurement strategies.

Is there a trend towards sustainable procurement in Australia?

Yes, the report notes a growing interest in making procurement more sustainable, although Australia has been slower to adopt these measures compared to the U.S. and Europe.

How many providers were evaluated in the ISG Provider Lens report for Australia?

The report evaluates the capabilities of 18 providers in the procurement BPO and transformation services space.

Information Services Group, Inc.

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