Introduction

The global multi-process PO market continued its robust growth of 12% in 2014. The year witnessed significant contractual activity with 98 new contracts. The PO service provider landscape is evolving, as players continue to invest in technological tools and new-age technologies. With the increasing focus on innovation, technologies, such as advanced/cognitive analytics, RPA, mobile solutions, and automation, will provide a competitive edge in the future.

In this research, we analyze the PO service provider landscape across various dimensions:

• 2015 PO PEAK Matrix and Star Performers
• Service provider delivery capability assessment
• Everest Group analysis on service providers
• PO market share analysis

The scope of analysis includes:

• Third-party PO deals; it does not include shared services or Global In-house Centers (GICs)
• Over 1,100 multi-process PO deals signed as of 2014, with a minimum of three procurement processes, over US$1 million in ACV, and a minimum contract term of three years. Typically, managed spend is greater than US$50 million
• Coverage across 18 PO service providers with multi-process capability, namely Accenture, Aegis, Aquanima, Capgemini, Genpact, GEP, HCL, HCMWorks, HP, IBM, Infosys, Optimum Procurement, Proxima, TCS, Tech Mahindra, Wipro, WNS, and Xchanging
• Global survey and one-on-one executive-level buyer interviews to understand how organizations perceive their PO engagements

Content

The report analyses the performance of various service providers of PO along six dimensions and includes:

• 2015 PO PEAK Matrix and Star Performers
• Everest Group classified 18 PO service providers on Everest Group’s proprietary PEAK Matrix framework into:
• Leaders: Accenture, GEP, IBM, and Infosys
• Major Contenders: Aquanima, Capgemini, Genpact, HCMWorks, HP, Proxima, Tech Mahindra, Optimum Procurement, TCS, Wipro, WNS, and Xchanging
• Aspirants: Aegis and HCL
• Based on YoY movement of different service providers on the PEAK Matrix, Everest Group identified three service providers as the “2015 PO Market Star Performers” – Accenture, GEP, and IBM
• Everest Group analysis on service providers
• We assessed the overall PO capability of service providers by evaluating them along six dimensions – market success, scale, scope, technology & innovation, delivery footprint, and buyer satisfaction levels
• PO market share analysis
• The PO market is concentrated in the hands of a few large players. IBM and Accenture are invariably the top two players in almost all segments and control almost 50% of the market share
• The top players have exposure to a wider array of buyer segments, while the other players focus largely on the large- or mid-market segment
• IBM, Accenture, and Xchanging accounted for more than 65% of the new contracts signed in 2014

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