Procurement leaders are navigating an increasingly complex landscape, marked by heightened demands for cost efficiency, sustainability, and risk mitigation. Traditional automation tools are no longer sufficient to meet these challenges. Enter Agentic AI – a transformative technology characterized by autonomous decision-making capabilities that can revolutionize procurement processes. In this webinar, our experts Bhanushee Malhotra, Prateek Singh, and Amit Lad delved into the concept of Agentic AI within procurement. This webinar explored the technological landscape, functionalities, and transformative impact of Agentic AI across various procurement processes. Attendees gained clarity on Agentic AI’s role, potential benefits, and key considerations for successful implementation. What questions did the webinar answer for the participants? What is Agentic AI, and how does it differ from traditional procurement automation tools? Which procurement processes are most suitable for Agentic AI adoption? What are the various Agentic AI use cases currently offered by procurement technology providers? What are the essential functionalities and capabilities to look for in AI agents within procurement solutions?

Tail spend, characterized by low-value, high-volume purchases, is often overlooked as procurement teams traditionally focus on key suppliers. This leaves tail spend fragmented and unmanaged despite its potential to unlock value through cost reduction, enhanced compliance, and improved operational efficiency. In today’s age of economic uncertainty, supply chain disruptions, and inflationary pressures, neglecting tail spend is no longer an option. Managing tail spend presents challenges such as noncompliance due to weak policy integration, siloed purchasing practices, and data fragmentation that limits visibility. Direct tail spend management is further complicated due to supplier qualification requirements and intricate processes. However, emerging technologies such as AI, analytics, and autonomous sourcing are transforming how organizations address these issues. This report highlights the importance of tackling tail spend, persistent challenges, and strategic approaches for optimization. It demonstrates how digital solutions can revolutionize tail spend management, enabling streamlined processes, improved user experiences, and significant cost savings. The report also identifies key success factors to ensure sustainable improvements, helping organizations unlock the full potential of managing their tail spend. Scope All industries and geographies Contents In this report, we examine: Tail spend management’s importance Modern procurement design principles to effectively manage tail spend Unlocking value through technology in tail spend management Key factors for successful tail spend programs Membership(s) Procurement and Supply Chain Sourcing and Vendor Management

The procurement function is increasingly recognized as a strategic enabler, addressing cost optimization, adapting to changing customer needs, and fostering collaboration with adjacent functions such as supply chain and finance and accounting. In 2024, procurement organizations have expressed intent to accelerate digital investments, integrating best-of-breed solutions such as autonomous sourcing tools, intake management, procurement orchestration, chatbots, and supplier management tools into their existing technology stacks. These solutions, powered by AI/ML and generative AI, drive process efficiency, assist decision-making, embed intelligent automation, enhance use experiences, and streamline workflows, while empowering procurement practitioners. Apart from technology providers, service providers are also digitally transforming procurement through S2P platforms, integration tools, and point solutions alongside managed services and advisory focused on enabling procurement transformation. Due to economic uncertainty and slower buyer decision-making, the Procurement Outsourcing (PO) market experienced muted growth in 2023, with potential for resurgence in 2024-25 as first-generation enterprises engage with providers and existing buyers expand scope to include upstream procurement. This research provides comprehensive coverage of the PO market, analyzing regional/industry variations, buyer adoption trends, and growth drivers. It is relevant for stakeholders interested in creating agile and resilient procurement functions with differentiated capabilities, including new buyers / parent organizations exploring procurement outsourcing, providers, and industry influencers such as investors and industry bodies. Scope All industries and geographies Contents In this report, we examine: Procurement challenges and digital imperatives Emerging procurement technologies beyond suites Role of providers as partners in digital evolution PO market overview and adoption trends Key buyer adoption trends Membership(s) Procurement and Supply Chain Sourcing and Vendor Management

The Procurement Outsourcing (PO) Services – Provider Compendium 2024 offers comprehensive, fact-based profiles of leading PO service providers. The report highlights their service offerings, scale of operations, technology solutions, delivery locations, and recent developments. This report helps providers benchmark their capabilities against their peers and empowers buyers to assess whether providers’ offerings align with their requirements. Scope All industries and geographies Contents Each service provider profile includes the following: Service suite and scale of operations: key leaders, service suite, FTEs, revenue, recent developments, and partnerships Delivery locations: city-level details of key delivery locations worldwide Capabilities and clients: major engagements, revenue split by geography and industry, and the number of clients by buyer size Technology solutions: key technology solutions’ brief descriptions Everest Group assessment: the provider’s position on the Everest Group PEAK Matrix® framework, market share and delivery capability assessment, and provider capabilities’ evaluation Membership(s) Procurement and Supply Chain Sourcing and Vendor Management

Procurement Outsourcing (PO) providers support procurement organizations' transformation initiatives by helping streamline processes, drive digital adoption, and incorporate best practices. Providers are aligning their offerings to meet enterprise requirements to provide a comprehensive digital ecosystem comprising advanced technology solutions, including generative AI, end-to-end platforms, best-of-breed suites, and contextualized analytics and automation point solutions through their in-house investments and partnerships. With increased enterprise willingness to seek support in upstream procurement areas such as sourcing and category management, providers are also enhancing their sourcing and category expertise across indirect spend and specific direct spend categories. The evolving PO provider landscape comprises a spectrum of providers, including specialist providers, pure-play procurement and SCM-focused providers, broad-based BPS providers, and IT and BPS providers. In this research, we assess 24 PO providers featured on the PO Services PEAK Matrix® Assessment 2024. Each assessment provides a comprehensive picture of the provider’s market success, vision and strategy, service focus and capabilities, digital and technological solutions, domain investments, and buyer feedback to assist buyers in making sourcing decisions. With PO engagements’ continued extension in upstream procurement areas, we also asses 22 PO providers on their Source-to-Contract (S2C) capabilities and feature them on the S2C Services PEAK Matrix Assessment® 2024. Scope All industries and geographies The assessment is based on Everest Group’s annual RFI process for the calendar year 2024, interactions with leading procurement service providers, client reference checks, and an ongoing analysis of the PO services market Contents This report includes: PO Services PEAK Matrix® Assessment 2024 S2C Services PEAK Matrix® Assessment 2024 Key insights into PEAK Matrix® dimensions Strengths and limitations of individual providers Enterprise sourcing considerations Overview of top PO providers across geographies and industries, along with their respective market shares Membership(s) Procurement and Supply Chain Sourcing and Vendor Management

Procurement today faces constant pressure to reduce costs while adding value, such as improving efficiency, driving supplier innovation, managing risk, incorporating emerging technologies like generative AI, and helping the organization achieve its environmental, social, and governance (ESG) goals, among others. A well-designed procurement operating model is key to achieving these objectives, but many teams struggle with outdated models. In this webinar, our sourcing experts helped procurement professionals understand the key factors of designing an effective model to ensure maximum organizational value. What questions did the webinar answer? Why are organizations transforming their procurement operating models, and what are the key drivers for this change? How do you design a procurement operating model that aligns with your organization’s structure and strategic objectives? What are the considerations for building agility in your procurement operating model so that it can easily adapt to changing needs? How does an organization’s procurement maturity level impact its choice of procurement operating models?

Procurement Outsourcing (PO) providers have proven their expertise to enterprises by significantly lowering costs and streamlining procurement processes. These providers were vital in enabling business continuity for enterprises, particularly during the COVID-19 pandemic, economic downturns, technical upheavals, and leadership transitions. Their ability to maintain operational efficiencies amid turbulent environments has highlighted their significance across various sectors. While enterprises acknowledge PO providers’ strengths in offering process expertise, leveraging traditional technologies, and implementing services, there is a growing demand for providers to deliver beyond operational efficiency. Enterprises now seek providers that drive innovation, demonstrate proactive problem-solving, and leverage advanced technologies to enhance procurement outcomes. In this report, we identify challenges that procurement teams face in an uncertain business environment and their influence on dynamic expectations from PO providers. The report analyzes the capabilities and offerings that help providers become enterprise strategic partners. It also recommends strategies for PO providers to improve their status and effectiveness as trusted partners in driving business procurement excellence. Scope All industries and geographies Service: procurement Contents This report examines: Outsourcing landscape’s current status PO providers’ performance Expectations from PO providers to become strategic partners Opportunities for PO providers Membership(s) Procurement and Supply Chain Sourcing and Vendor Management

Since the introduction of ChatGPT, organizations have shown a keen interest in exploring the applications of generative AI across various business functions, with procurement being no exception. As procurement has evolved from a back-office function to a strategic one, organizations are increasingly focused on transforming procurement operations by leveraging advanced technologies. While procurement has traditionally utilized technologies such as Robotic Process Automation (RPA), Optical Character Recognition (OCR), and basic analytics, the adoption of advanced technologies such as AI/ML is still in its early stages compared to more mature functions such as Finance and Accounting (F&A) and HR. However, the emergence of generative AI and growing enterprise interest in its applicability are expected to accelerate the adoption of next-generation technologies, including AI/ML, to drive further efficiencies and achieve better business outcomes across procurement operations. Generative AI’s creative and cognitive capabilities offer multiple potential use cases across the Source-to-Pay (S2P) value chain, with some organizations already piloting generative AI-based solutions within procurement. It can potentially transform procurement operations by facilitating increased automation, offering decision support, and reducing manual intervention through virtual assistants. With the buzz around generative AI and its emerging use cases, it is imperative for organizations to prioritize the most impactful use cases while also being cognizant of the various challenges associated with the application of generative AI-based solutions in procurement. In this viewpoint, we explore the current landscape of digital adoption in procurement, examining existing AI/ML-based solutions across the S2P value chain. The report also highlights the emergence of generative AI and its implications for procurement, exploring specific use cases within the procurement value chain and emphasizing the prioritization of these use cases for implementation. Scope All industries and geographies Contents In this viewpoint, we examine: The current state of digital adoption in procurement Use cases of AI-/ML-based solutions across the S2P value chain The emergence of generative AI and its implications Generative AI’s use cases within procurement operations and their prioritization Key considerations to ensure generative AI solutions’ successful implementation Membership(s) Procurement and Supply Chain Outsourcing Excellence

Amid ongoing economic uncertainties and cost pressures, enterprises are evolving their Procurement Outsourcing (PO) engagements to optimize value, enhance RoI, and achieve improved outcomes. Providers and enterprises are collaborating to bridge the gap between expected and delivered value by understanding and aligning on desired outcomes throughout the procurement value chain. Value drivers along the Source-to-Pay (S2P) value chain vary based on the nature of processes and their strategic importance. Additionally, the nature and volume of spend, as well as the categories outsourced, impact these value drivers. There is a notable increase in the adoption of innovative pricing models that offer greater flexibility, enable risk/reward sharing, and incentivize better performance to drive desired outcomes. In 2022, the PO market grew significantly as providers expanded their scope into strategic procurement areas and improved penetration across various regions and industries. However, starting early in 2023, prevailing economic uncertainties slowed buyer decision-making, resulting in growth moderation. Despite this, decent growth is anticipated as enterprises seek support from providers to navigate uncertainties and manage costs. This research provides comprehensive coverage of the PO market, analyzing it across aspects such as regional/industry variations, buyer adoption trends, and growth drivers. The report will be relevant for stakeholders interested in establishing agile and resilient procurement functions with differentiated capabilities. This includes new buyers / parent organizations exploring procurement outsourcing, service providers, and industry influencers such as investors and industry bodies. Scope All industries and geographies This research leverages our interactions with 23+ leading PO service providers worldwide Contents This report examines: Value from PO function Capturing value through innovative pricing constructs PO market overview and adoption trends Key buyer adoption trends Membership(s) Procurement and Supply Chain Sourcing and Vendor Management

Procurement Outsourcing (PO) – Service Provider Compendium provides accurate, comprehensive, and fact-based snapshots of 22 providers, including their scale of operations, technology solutions, and delivery locations, along with Everest Group’s PEAK Matrix® service provider assessment. The compendium also examines the global PO operations service provider landscape. The study will enable current and potential buyers of PO operations to assess the providers on their areas of strength and limitations based on desired capabilities. Scope All industries and geographies Contents This report features 22 PO provider profiles and includes: Service suite and scale of operations: key leaders, service suite, FTEs, revenue, recent developments, and partnerships Delivery locations: city-level detail of key delivery locations worldwide Capabilities and clients: major engagements, revenue split by geography and industry, and number of clients by buyer size Technology solutions: brief descriptions of key technology solutions Everest Group assessment: providers’ position on the Everest Group PEAK Matrix®, market share and delivery capability assessment, and overall evaluation of provider capabilities Membership(s) Procurement and Supply Chain Sourcing and Vendor Management