Procurement’s Rising Importance Lifts Demand for Software

Rhea-AI Summary

Global demand for procurement software platforms is on the rise as enterprises prioritize strategic procurement decision-making and operations. Companies are seeking platforms that offer agility, analytics, and AI to enhance procurement efficiency and adaptability. The report highlights the importance of automation, real-time insights, and AI-powered analytics in procurement software platforms.

Enterprises seek holistic platforms that offer agility, analytics and AI for strategic procurement decision-making and operations, ISG Provider Lens™ report says

STAMFORD, Conn.--(BUSINESS WIRE)-- Global demand for procurement software platforms is rising as procurement becomes more strategic to enterprises, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2024 ISG Provider Lens™ global Procurement Software Platforms report finds that, as procurement evolves into a strategic capability, enterprises are setting new priorities when choosing software. They are now seeking platforms that enhance procurement efficiency, adaptability and data-driven insights.

“Supply chain disruptions have made the business landscape far more complex and risky in the last few years,” said Robert Stapleton, partner and Business Outsourcing Services lead for ISG. “Companies need an effective procurement system to navigate these changes, and that starts with a solid, holistic procurement software platform.”

Amid ongoing economic uncertainty, enterprises are looking for ways to reduce costs in every area, including procurement, ISG says. When evaluating procurement software platforms, they seek features including spend consolidation, automated negotiation tools and the ability to optimize supplier performance. Companies also prioritize streamlined workflows, reduced administrative overhead and a demonstrably quick return on investment.

The increasing complexity of procurement processes, plus growing volumes of procurement data that need to be analyzed, are creating more demand for software that automates repetitive tasks, the report says. Automation can both reduce the chance of human error and give procurement experts more time to focus on strategic initiatives.

To make more informed decisions on sourcing, negotiation and risk management, organizations require real-time insights into trends in spending, supplier performance and market fluctuations, ISG says. Advanced, AI-powered analytics, including generative AI (GenAI), are now essential to procurement software platforms.

“The next logical step is autonomic decision-making by procurement software itself, especially given the shortage of skilled labor in this field,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “This could be the greatest disruptor that emerges from AI.”

The report also explores other procurement platform trends, including the increasing demand for easy-to-use software and the rising importance of trust between vendors and clients.

For more insights into enterprise challenges related to procurement platforms, including continued reliance on inefficient, manual processes and the need for more transparency between internal functional divisions, see the ISG Provider Lens™ Focal Points briefing here.

The 2024 ISG Provider Lens™ global Procurement Software Platforms report evaluates the capabilities of 24 providers in one quadrant: Procurement Software Platforms.

The report names Basware, Coupa, GEP, Infor, Ivalua, JAGGAER, Oracle, SAP Ariba, Tradeshift and Workday as Leaders in the quadrant.

In addition, Corcentric is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in the quadrant.

A customized version of the report is available from GEP.

The 2024 ISG Provider Lens™ global Procurement Software Platforms report 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.

About ISG
ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 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 AI and 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 1,600 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240418832672/en/

Press Contacts:

Will Thoretz, ISG

+1 203 517 3119

will.thoretz@isg-one.com

Julianna Sheridan, Matter Communications for ISG

+1 978-518-4520

isg@matternow.com

Source: Information Services Group, Inc.

FAQ

What is driving the rising demand for procurement software platforms according to the ISG Provider Lens™ report?

Enterprises are prioritizing strategic procurement decision-making and operations, seeking platforms that offer agility, analytics, and AI to enhance efficiency and adaptability.

What features are companies looking for when evaluating procurement software platforms?

Companies seek features like spend consolidation, automated negotiation tools, supplier performance optimization, streamlined workflows, reduced administrative overhead, and quick ROI.

Why is automation considered essential in procurement software platforms?

Automation can reduce human error, automate repetitive tasks, and allow procurement experts to focus on strategic initiatives, especially in the face of growing procurement data volumes.

What role do AI-powered analytics play in procurement software platforms?

AI-powered analytics, including generative AI (GenAI), provide real-time insights into spending trends, supplier performance, and market fluctuations, enabling informed decision-making in sourcing, negotiation, and risk management.

Which companies are named as Leaders in the Procurement Software Platforms quadrant by the ISG Provider Lens™ report?

The report names Basware, Coupa, GEP, Infor, Ivalua, JAGGAER, Oracle, SAP Ariba, Tradeshift, and Workday as Leaders in the quadrant.