Introduction

The global multi-process Procurement Outsourcing (PO) market maintained its robust momentum and recorded a sturdy growth of 12% in 2014. Both organic and inorganic growth contributed to overall increase in the market size. The value proposition of PO is evolving, with focus not only on cost reduction but also on strategic value beyond costs. Hence, the solution characteristics of PO contracts are also witnessing a change, to embrace the evolution of the value proposition. Furthermore, buyers are increasingly looking at transformative solutions to drive the strategic agenda for procurement. In such a scenario, competition among the service providers is becoming intense and they are scaling up their offerings in terms of processes, execution, and technology, which are becoming an integral part of a comprehensive PO solution.

In this study, we analyze the global multi-process PO market in 2014. We focus on:

• Market overview and adoption trends
• Value proposition and solution characteristics
• PO service provider landscape, covering service providers’ market share and areas of investments

The scope of analysis includes:

• Third-party PO deals; it does not include shared services or Global In-house Centers (GICs)
• Around 660 new multi-process PO deals signed as of 2014 with a minimum of three PO processes, over US$1 million in ACV, and a minimum contract term of three years
• Coverage across 18+ PO service providers with multi-process capability including Accenture, Aegis, Aquanima, Capgemini, Genpact, GEP, HCL, HCMWorks, HP, IBM, Infosys, Optimum Procurement, Proxima, TCS, Wipro, WNS, Xchanging, and Xerox
• Global survey and one-on-one executive-level buyer interviews to understand how organizations perceive their PO engagements