Tag: procurement

Direct Spend to See an Increase in Outsourcing: Report | In the News

A new report from Texas-based research firm Everest Group analyzes the factors contributing to suboptimal direct spend management.

The report — “Is It Time to Outsource Direct Spend Categories?” — aims to provide a process for enterprises to begin changing their approach to direct spend management.

In recent decades, Everest Group explains, the procurement function has evolved as enterprises have streamlined their processes for buying goods and services.

Read more in Spend Matters

How To Purchase Services For Digital Transformation | Sherpas in Blue Shirts

Disruptive technologies enable dramatic new ways of doing work and delivering value to customers. Understandably, companies are rushing to implement disruptive technologies to change their business so that they can better serve their customers, employees, partners with new value and lower their total cost of ownership. Achieving this goal necessitates assembling a digital platform. However, few companies have the resources to build and maintain a platform alone, so they need to contract with third-party service providers. Here’s the problem: the classic procurement approach for third-party services doesn’t work with digital transformation.

Read more in my blog on Forbes

ProcureCon Total Talent Management Conference — September 26-27 | Event

Research VP Julian Herbert will be a key speaker at ProcureCon Total Talent Management 2018 held on September 26 and 27 in Amsterdam. Julian will lead a session titled “Total Talent Acquisition: a Roadmap for Enterprises” on September 26.

About the event

What started off as 100 people in a room discussing where this sector is headed, has lead to over 5,000 senior-level procurement executives being inspired while learning and developing their company as well as their careers over the past 17 years.

Recently, ProcureCon customers – Procurement leaders from the world’s leading companies – have asked for a dedicated learning and networking platform for their vertical. So, ProcureCon organized the Total Talent Management event.


September 26-27, 2018


Amsterdam City, Amsterdam


Julian Herbert, Vice President, Everest Group

Learn more and register to attend

Preparing for End of Term: Key Considerations for Today’s Dynamic Environment | Virtual Roundtable

Thursday, July 27, 2017 | 11:00 a.m. – 12:30 a.m. ET

Preparing an end-of-term strategy involves critical analysis around renew versus recompete versus re-sourcing. Current Market dynamics, including the rotation to digital and geopolitical unrest, are significantly impacting the market, making contracting even more complicated.

To help sourcing and procurement executives nearing end of term on major outsourced contracts, this session will provide an update on current market trends and practices, followed by a group discussion among participants on how they are approaching their sourcing strategies and negotiations, including key considerations and best practices, among other topics.
Who Should Attend
Global services sourcing and procurement executives in enterprises nearing end of term in their key outsourced contracts.

What You Will Learn
This session will help participants develop an understanding of the key considerations, best practices, and next-generation digital levers to manage end-of-term planning and execution.

Request to attend

Gear up to See Increased Market Activity in the Strategic Sourcing Space | Sherpas in Blue Shirts

Last month, WNS acquired Denali Sourcing Services, a procurement outsourcing company, to further strengthen its broader finance and accounting offering with a specific focus on the sourcing and category management domain. This was a strategic move on WNS’ part to drive enhanced value for its clients. The acquisition will allow WNS to provide an end-to-end Source-to-Pay (S2P) offering without any external dependency. The transition is expected to be mostly smooth, as WNS and Denali have been long-time partners and already have a healthy working relationship.

For the broader market, this acquisition reiterates the importance of people skills, experience, and domain knowledge in procurement services. While technology is important in any business process function, procurement outsourcing relies heavily on individual talent. Several providers have tried to develop these capabilities in-house with limited success. A major obstacle has been the short supply of sourcing talent pool, compounded by the fact that it is very challenging to provide strategic sourcing services from an offshore location.

In today’s procurement world, automation is becoming table stakes, speedily wiping out the transactional part of the work. Intense competition is further driving down pricing, leaving everyone to operate on wafer thin margins. As P2P becomes commoditized, providers are increasingly identifying the need to build sourcing capabilities. They have realized that, in addition to higher revenue and profit margins, sourcing capabilities are necessary for long-term success in this space.

One of the fastest ways to build sourcing capabilities is an acquisition. Service providers have been on a constant lookout for players with strong sourcing capabilities, and have not hesitated in making such acquisitions. For example, Accenture, one of the top players in this space, acquired Ariba’s sourcing and BPO services way back in 2010. In 2013, it further expanded its services by acquiring Procurian, another leading procurement services provider.

Service providers have also made small targeted acquisitions to develop niche capabilities. Before its acquisition by Accenture, Procurian had acquired Media IQ, a media auditing, measurement, and benchmarking company, and Utilities Analyses, Inc. (UAI), an energy management firm. In 2011, Infosys acquired an Australian-based strategic sourcing and category management services provider, Portland Group Pty Ltd. And in early 2016, Genpact, another strong player in the space, acquired Strategic Sourcing Excellence (SSE), a sourcing and procurement consulting firm.

The big question that follows is why other players have not made acquisitions in this space to strengthen their hold on the market. The answer is simple. There are not a lot of strategic sourcing and category management players with considerable scale. Denali falling out of the race means that the list further shortens. Each acquisition puts extra pressure on the remaining players to prioritize procurement and make a quick decision. So WNS’ acquisition of Denali could potentially be a starting point for some hectic market activity.

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