Understanding Strategic Sourcing and its David and Goliath Landscape

During 2016-2017, the global strategic sourcing BPO market grew at a CAGR of 12-17% to reach approximately US$1 billion. The growth is driven by an increase in outsourcing of strategic sourcing by enterprises to leverage service providers’ category expertise and digital capabilities. However, the enterprises face several difficulties when selecting a procurement provider. The key reason is that, in addition to many broad-based BPO players, there are several niche procurement consulting firms. The market is fast-evolving and continues to reshape with acquisitions, partnerships, and emergence of new players.

In this study, we analyze the strategic sourcing BPO market. We focus on:

• Market overview and adoption by geography, industry, and buyer size
• Advantages and challenges to strategic sourcing adoption by enterprises
• PO service provider landscape and analysis of emergence of niche procurement consulting firms and changing service provider landscape

The scope of analysis includes:

• Third-party PO deals; it does not include shared services or Global In-house Centers (GICs)
• Coverage across 30+ broad based PO service providers and niche procurement consulting firms, namely, 4C Associates, Accenture, Aegis, Aquanima, Argon Consulting, Capgemini, CenterPoint Group, CGN Global, ChainIQ, Corbus, Dragon Sourcing, Dryden Group, Efficio Consulting, Genpact, GEP, Gibson Consulting Group, HCL, IBM, Infosys, Inprova Group, Insight Sourcing Group, Optibuy, Paladin Associates, Pinnacle Sourcing, ProcureAbility, Procure It Right, Proxima, TCS, Wipro, and WNS

Membership(s)

Procurement Outsourcing (PO)