Introduction

Today, buyer organizations are increasingly focusing on a transformational approach to optimize their finance and procurement functions. Convergence of finance and procurement functions provides one such opportunity by unlocking value in the two key areas, working capital management and procurement compliance. As a result, the emphasis on an end-to-end process driven approach is emerging as opposed to the existing piecemeal and functional approach.

Service providers are also leveraging this scenario as an opportunity to augment their Finance & Accounting (F&A) and procurement offerings and provide an integrated solution to their clients to differentiate themselves.

In this research, we analyze the global Procure-to-Pay (P2P) outsourcing service provider landscape in 2013. We focus on:

• Market overview and buyer adoption trends
• Position of 30 service providers on the Everest Group PEAK Matrix for P2P outsourcing
• Key insights on PEAK Matrix dimensions
• P2P solution characteristics

The scope and methodology of this report include:

• Over 1,300 active Finance & Accounting Outsourcing (FAO) and Procurement Outsourcing (PO) contracts with elements of P2P in scope
• Coverage across 30 P2P outsourcing service providers: Accenture (includes Procurian Inc.), Xerox, Minacs, Aegis, Aquanima, Capgemini, Cognizant, Corbus, Datamatics, Dell, EXL, Genpact, GEP, HCL, HP, IBM, IGATE, Infosys, IQ BackOffice, NIIT Technologies, Optimum Procurement, Proxima, Quatrro, Serco, Sutherland Global Services, TCS, Tech Mahindra, Wipro, WNS, and Xchanging

Content

This report examines the multiple aspects of the P2P outsourcing market. It focuses is on service provider position and growth, changing market dynamics & emerging service provider trends, and assessment of service provider delivery capabilities. Along with these, the report encompasses analysis of P2P outsourcing market at an aggregate level and key solution characteristics.

Following are a few glimpses from the report:

• Market overview and emerging trends
• The adoption from new buyers is the primary growth driver. However, the share of renewals in the contractual activity is rising
• Industries mature in P2P adoption dominate the market. However, other industries are exhibiting promising growth as well
• Western countries dominated the P2P outsourcing adoption
• PO Service Provider Landscape overview
• The service provider landscape of PO is top-heavy, with 70% share dominated by the top six providers. All of these were end-to-end service providers with their portfolio including both FAO and PO
• However, the market is becoming increasingly competitive with other providers scaling up their scale, process expertise, and technology profile
• 2014 PO PEAK Matrix

Everest Group classifies 30 P2P service providers on the Everest Group’s proprietary PEAK Matrix framework into:

• Leaders – Accenture, Genpact, IBM, TCS, Infosys, Capgemini, Wipro, and HP
• Major Contenders – WNS, Xerox, EXL, Cognizant, Serco, GEP, Xchanging, HCL, Minacs, IQ BackOffice, IGATE, Datamatics, Aegis, and Corbus
• Emerging Players – Tech Mahindra, Proxima, NIIT Technologies, Optimum Procurement, Sutherland Global Services, Aqaunima, Quatrro, and Dell
• Service provider delivery capability assessment
• We assess the overall PO capability of service providers by evaluating them along six dimensions – market success, scale, scope, technology, delivery footprint, and buyer satisfaction levels
• Leaders outperform other players across nearly all the metrics assessed. However, the gap with Major Contenders was reducing
• Solution characteristics
• We analyze the developments in technology specific to P2P by evaluating the solutions offered and deployed by each of the 30 providers
• We have also brought forward insights and trends in the contract pricing methodologies and its transition from input-based to outcome-based
• Our findings include insights around the global sourcing trends and key delivery locations

Everest Group has a complimentary four-page PEAK Matrix preview document for this service provider landscape report.