AI, Automation Boost Interest in Procurement Platforms

ISG Provider Lens™ report finds new advances can help enterprises transform procurement to adapt to widespread disruptions

Investments in automation and AI over the past year have made procurement software platforms even better for transforming enterprises’ procurement operations, according to a new report published by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

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“They need to make improvements sooner due to greater economic pressures.”

The 2022 ISG Provider Lens™ Procurement Software Platforms and Solutions Global Report finds that for enterprises around the world, implementing advanced software platforms remains a popular first step toward making procurement more efficient and sustainable. Since last year’s report, automation and AI capabilities have expanded significantly, bringing more advanced machine learning, automation of entire processes and AI that further reduces the need for human labor.

“Pandemic disruptions continue to drive large and midmarket enterprises to re-think and re-invent sourcing and procurement,” said Shahid Batty, director, Global Business Operations, at ISG. “For most procurement organizations in most markets, adopting a modern software platform is the first step toward eventual digital business transformation.”

Software modernization may be an attractive path for enterprises that choose not to outsource, the report says. By implementing a comprehensive software platform, firms can achieve the scope of improvement available through business process outsourcing (BPO) while retaining responsibility and control over critical business operations. In addition, leading platform vendors offer a modular approach that lets clients make a series of tactical improvements that deliver immediate value while building toward long-term procurement transformation.

For midmarket firms, which face especially urgent challenges, new software platforms often play a larger role in the overall reinvention of procurement, ISG says.

“Many midmarket companies face the same disruptions as larger firms, but with fewer resources,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “They need to make improvements sooner due to greater economic pressures.”

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The report also includes insights on other aspects of the evolving procurement landscape, including growing challenges faced by leading providers that could affect their ability to serve clients.

The 2022 ISG Provider Lens™ Procurement Software Platforms and Solutions Global Report evaluates the capabilities of 29 providers across two quadrants: Software Platforms and Solutions for Large Accounts, and Software Platforms and Solutions for the Midmarket.

The report names Corcentric, GEP, Ivalua, JAGGAER, SAP Ariba and Tradeshift as Leaders in both quadrants. Coupa, Oracle and Zycus are named Leaders in one quadrant each.

In addition, Zycus is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant.

A customized version of the report is available from Corcentric and GEP.

The 2022 ISG Provider Lens™ Procurement Software Platforms and Solutions Global Report is available to subscribers or for one-time purchase on this webpage.

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