HfS Research, in its latest Blueprint Report for Procurement Outsourcing (PO) Services, placed Accenture firmly in its “Winner’s Circle.”
HfS analysts recognized Accenture for its “ability to provide both sourcing and transactional elements of the PO value chain, geographic footprint and excellent customer-service delivery,” making Accenture “the clear choice for buyers.”
Also, the complete integration of Ariba Services and Accenture's ability to provide niche offerings solidified its global market share at approximately 20 percent, according to the report, which was released in July 2013.
The global procurement BPO market—which HfS estimates at $3.4 billion—continues to grow, but shows some signs of adoption and market immaturity.
Few outsourcing providers offer truly end-to-end procurement BPO services.
There is a clear differentiation between transactional and sourcing providers.
Procurement outsourcing deals have tended to be ancillary parts of multi-process BPO engagements, but the trend is subsiding.
Technology is becoming a real differentiator, as buyers begin to seek providers that will manage their technology as well as their procurement processes.
Transactional-based pricing still eludes the market, accounting for less than 10 percent of all procurement BPO deals.
HfS Research concludes that Accenture’s ability to combine strategic sourcing capabilities with market-leading finance and accounting (F&A) outsourcing abilities enables it to offer a true end-to-end source-to-pay solution. Accenture also provides solutions in category management, tail-spend management, supplier-relationship management and risk management for clients seeking targeted help.
For the PO market as a whole, HfS Research highlights four key themes that will define this space in the future:
Procurement outsourcing will become industrialized and commoditized in the next five years.
Providers will begin to offer more on-shore delivery centers in order to provide location, time-zone, language and market knowledge, similar to Accenture's onshore model.
The procurement-consulting market is set to evolve as procurement-outsourcing and traditional outsourcing providers challenge each other.
Buyers are placing more emphasis on technology platforms and their role in the overall procurement process.