State and local organizations achieve cost
savings, compliance, improved processes through growing investments
in platforms and outsourcing, ISG Provider Lens™ report
says
Investments in procurement outsourcing and platforms continue to
grow in the U.S. public sector as it emerges from years of delayed
digital modernization, according to a new research report published
today by Information Services Group (ISG) (Nasdaq: III), a leading
global technology research and advisory firm.
The 2023 ISG Provider Lens™ Procurement BPO, Transformation and
Software Platforms report for the U.S. Public Sector finds many
state, local and educational organizations still planning or
carrying out modernization of their procurement systems and
practices as part of a wave of initiatives kicked off by
disruptions related to the COVID-19 pandemic. Supply chain
interruptions, cost-cutting requirements and widespread
resignations from government IT organizations brought the need for
modernization to a head, and new federal funds made many projects
possible.
“Public sector procurement in the U.S. has gone from stagnation
to rapid change almost overnight,” said Nathan Frey, partner and
lead, ISG Public Sector, for the U.S. “We expect this trend to
continue at least through 2025 — and probably accelerate.”
For the first time, providers of procurement outsourcing and
platforms are beginning to invest heavily in the capability to
serve the U.S. public sector, ISG says.
Procurement platforms remain the cornerstone of effective
digital modernization. Many public sector organizations adopted
early cloud-based procurement systems in a fragmented way more than
a decade ago and built their operations around them, the report
says. To streamline processes, reduce costs and comply with a
growing number of cybersecurity and privacy regulations, agencies
are now implementing more modern platforms that are modular and
include interfaces to related functions such as finance, making way
for higher efficiency and tighter control.
The new platforms offer standardized application and enforcement
of policies, with improved user experience, and enable sharing of
clean, trusted procurement data throughout the organization, ISG
says. Many also include automation features powered by machine
learning and natural language processing that can improve
operations and reveal new opportunities for optimization.
While outsourcing remains politically challenging in some
public-sector agencies, many are including it in their
transformation initiatives as their procurement staffs shrink and
skilled replacements prove hard to hire and retain, ISG says.
“The public sector suffered more than any other in the Great
Resignation that followed the pandemic,” said Jan Erik Aase,
partner and global leader, ISG Provider Lens Research. “Outsourcing
providers offer a lifeline to agencies that need to maintain and
improve procurement functions.”
For more insights into the procurement challenges of the U.S.
public sector and advice on successful modernization strategies —
including self-funding projects through gainsharing provider
contracts — see the ISG Provider Lens™ Focal Points briefing
here.
The 2023 ISG Provider Lens™ Procurement BPO, Transformation and
Software Platforms report for the U.S. Public Sector evaluates the
capabilities of 37 providers across three quadrants: Software
Platforms and Solutions, BPO Services and Transformation Consulting
Services.
The report names CGI and GEP as Leaders in all three quadrants.
It names Accenture, Deloitte, IBM and Infosys as Leaders in two
quadrants each. Coupa, Infor, Ivalua, JAGGAER, Oracle, SAP Ariba
and Workday are named as Leaders in one quadrant each.
In addition, HCLTech is named as a Rising Star — a company with
a “promising portfolio” and “high future potential” by ISG’s
definition — in one quadrant.
The 2023 ISG Provider Lens™ Procurement BPO, Transformation and
Software Platforms report for the U.S. Public Sector is available
to subscribers or for one-time purchase on this webpage.
About ISG Provider Lens™ Research
The ISG Provider Lens™ Quadrant research series is the only
service provider evaluation of its kind to combine empirical,
data-driven research and market analysis with the real-world
experience and observations of ISG's global advisory team.
Enterprises will find a wealth of detailed data and market analysis
to help guide their selection of appropriate sourcing partners,
while ISG advisors use the reports to validate their own market
knowledge and make recommendations to ISG's enterprise clients. The
research currently covers providers offering their services
globally, across Europe, as well as in the U.S., Canada, Brazil,
the U.K., France, Benelux, Germany, Switzerland, the Nordics,
Australia and Singapore/Malaysia, with additional markets to be
added in the future. For more information about ISG Provider Lens
research, please visit this webpage.
A companion research series, the ISG Provider Lens Archetype
reports, offer a first-of-its-kind evaluation of providers from the
perspective of specific buyer types.
About ISG
ISG (Information Services Group) (Nasdaq: III) is a leading
global technology research and advisory firm. A trusted business
partner to more than 900 clients, including more than 75 of the
world’s top 100 enterprises, ISG is committed to helping
corporations, public sector organizations, and service and
technology providers achieve operational excellence and faster
growth. The firm specializes in digital transformation services,
including automation, cloud and data analytics; sourcing advisory;
managed governance and risk services; network carrier services;
strategy and operations design; change management; market
intelligence and technology research and analysis. Founded in 2006,
and based in Stamford, Conn., ISG employs more than 1,600
digital-ready professionals operating in more than 20 countries—a
global team known for its innovative thinking, market influence,
deep industry and technology expertise, and world-class research
and analytical capabilities based on the industry’s most
comprehensive marketplace data. For more information, visit
www.isg-one.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20230419005635/en/
Press: Will Thoretz, ISG +1 203 517 3119
will.thoretz@isg-one.com Julianna Sheridan, Matter Communications
for ISG +1 978-518-4520 isg@matternow.com
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