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.
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, 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. “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.”