GEP Recognized as a Leader in Source-to-Contract Services

Everest Group Source-to-Contract (S2C) Services PEAK Matrix® Assessment 2024

Overview

The report focuses on the procurement outsourcing (PO) and source-to-contract (S2C) services landscape, highlighting the key characteristics and capabilities of various service providers. The assessment is based on an annual Request for Information (RFI) process, interactions with leading procurement service providers, client reference checks, and ongoing market analysis.

Key Findings

1. Cost Reduction and Digital Maturity

   • Cost reduction remains a top priority despite macroeconomic uncertainties and inflationary pressures.
   • Service providers are committed to enhancing digital maturity to drive savings and improve efficiency, transparency, stakeholder experience, and accountability.

2. Service Provider Landscape

   • The landscape consists of a spectrum of providers, including specialist providers, pure-play procurement and supply chain management (SCM)-focused providers, broad-based business process services (BPS) providers, and IT and BPS providers.
   • The assessment covers 24 PO service providers and 22 S2C service providers.

3. S2C Services PEAK Matrix®

   • Leaders: Accenture, Genpact, GEP, IBM, Infosys, and WNS Procurement.
     • These providers have solidified their positions in the S2C market despite slower growth in 2023.
     • They offer large-scale sourcing support, extensive category expertise, and a comprehensive digital ecosystem.
     • They leverage AI and generative AI to enhance upstream procurement activities.
   • Major Contenders: Aquanima, Capgemini, Chain IQ, Corbus, Corcentric, Dragon Sourcing, HCLTech, LogicSource, TCS, Tech Mahindra, and Wipro.
     • These providers have strengthened their positions due to significant growth in the S2C market in 2023.
     • They invest in focused partnerships and build category management and sourcing capabilities.
     • They focus on relationship management and offer flexible engagement models.
   • Aspirants: Datamatics, EXL, Nexdigm, and Velocity Procurement.
     • These providers focus on specific S2C services such as contract management, spend analytics, strategic sourcing, and category management.
     • They have limited capability to support clients at scale in strategic upstream processes but operate at a smaller scale.

4. GEP's Position

   • Position: GEP is positioned as a Leader.
   • Service Suite: GEP offers a digital-based end-to-end Procurement-as-a-Service (PaaS) solution for S2C and procure-to-pay (P2P).
     • Includes direct and indirect category management, procurement operations, supplier relationship and performance management, procurement transformation, and procurement software.
   • Spend Managed: US$450 billion for external clients.
   • Scale of Operations: Over 6,000 full-time equivalents (FTEs) distributed across processes like Source-to-Contract and Procure-to-Pay.

5. Digital Capabilities

   • Service providers are increasingly integrating AI and generative AI into their existing solutions to drive efficiencies and improve stakeholder collaboration and experience.
   • They offer advanced analytics and automation tools to support contract management, sourcing, and spend analytics.

Conclusion

The report highlights the evolving landscape of procurement outsourcing and source-to-contract services, emphasizing the importance of digital maturity and strategic partnerships in driving success. Leading providers are leveraging AI and generative AI to enhance their services, while major contenders are focusing on building scalable and flexible solutions. Aspirants are focusing on specific services but face limitations in scale and scope.