About P2P Outsourcing
Procurement is a relatively new area of outsourcing. Procurement organizations face constraints in delivery due to the lack of resources. Companies often have to deal with declining budgets because of volatile economic conditions. CPOs are often forced to accomplish more with fewer resources. Budgetary restrictions are thus encouraging CPOs to seek low-cost delivery solutions such as outsourcing. P2P outsourcing helps companies bring on board outsourcing specialists and expert teams to handle internal purchasing, thus achieving greater value in terms of cost savings and go-to-market strategies. Sometimes, service providers do not necessarily focus on defining low-cost solutions; instead, they offer value-added services such as gaining supplier insights, market speculation details, and vendor selection.
Technavio’s analysts forecast the global procure-to-pay (P2P) outsourcing market to grow at a CAGR of 15.77% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global procure-to-pay outsourcing market for 2016-2020. To calculate the market size, we consider revenue generated from P2P outsourcing vendors in the market and total contract value (TCV) of P2P outsourcing deals.The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Procure-To-Pay (P2P) Outsourcing Market 2016-2020
Technavio recognizes the following companies as the key players in the global procure-to-pay (P2P) outsourcing market: Accenture, Capgemini, IBM, GEP, Infosys, and TCS.
Other Prominent Vendors in the market are: Aegis, Corbus, Genpact, HCL Technologies, HP, Optimum Procurement, Proxima, Synise Technologies¸ WNS, and Xchanging.
Commenting on the report, an analyst from Technavio’s team said: “Emergence of mobile P2P technology is a key trend for this market. Organizations are widely implementing mobile solutions to manage end-to-end procurement process. Firms implement the mobile-first strategy to manage the SCM process for the transactional process. Mobile solutions provide convenient payment solutions with added features such as purchasing management and order tracking facilities. Mobile applications built for the P2P process management system in organizations enhance decision-making process for procurement professionals in organizations.”
According to the report, cut costs in procurement process is a key driver for this market. Cost reduction is a vital factor to the adoption of P2P outsourcing solutions among organizations. Procurement managers face challenges in the effective management of P2P processes due to increased complexities and manual errors in the supply chain systems. IT and BPO outsourcing decisions are strategic in organizations, which consider many factors such as regulatory and compliance standards and quality improvement in the end-to-end procurement process. These factors are crucial to organizations to get high returns on investment (ROI) from investment outsourcing services. Companies incorporating the strategy to outsource business processes do not require capital investment in infrastructure.
Further, the report states that dynamic procurement service requirements are a challenge to market growth. Procurement outsourcing services require domain expertise for implementing complex P2P outsourcing solutions. Specialized skill sets are required for handling new projects and change management. It is essential to have process expertise, infrastructure, and systems to provide quality services to clients. Vendors should be equipped with technical competence, tools, and expert resources to implement procurement solutions accurately for their clients.
Accenture, Capgemini, IBM, GEP, Infosys, TCS, Aegis, Corbus, Genpact, HCL Technologies, HP, Optimum Procurement, Proxima, Synise Technologies¸ WNS, Xchanging.