GEP Named Leader and Star Performer in 2024 Procurement Outsourcing Services

Everest Group Procurement Outsourcing (PO) Services PEAK Matrix® Assessment 2024

Key Findings

1. Top Priorities for Procurement:

   • Cost Reduction: Despite macroeconomic uncertainties, geopolitical issues, and inflationary pressures, procurement remains focused on reducing costs.
   • Digital Maturity: Organizations are committed to enhancing their digital maturity to drive savings and improve efficiency, transparency, stakeholder experience, and accountability.

2. Role of Service Providers:

   • Support in Transformation Initiatives: Service providers are crucial in helping procurement organizations streamline processes, drive digital adoption, and incorporate best practices.
   • Advanced Solutions: Providers are incorporating AI (including generative AI) into their solutions and developing AI-based use cases to improve efficiencies and stakeholder collaboration.

3. S2C Capability:

   • Increased Demand: There is growing interest in upstream procurement areas such as sourcing and category management.
   • Enhanced Expertise: Providers are expanding their expertise in areas like ESG initiatives, risk management, and direct spend management.

4. Service Provider Landscape:

   • Spectrum of Providers: The market includes specialist providers, pure-play procurement and supply chain management (SCM)-focused providers, broad-based business process services (BPS) providers, and IT and BPS providers.
   • Assessments: 24 PO service providers were assessed for the PO services PEAK Matrix® and 22 for S2C services PEAK Matrix®.

5. PEAK Matrix® Characteristics:

   • Leaders:
     • Accenture, Genpact, GEP, IBM, Infosys, and TCS: These leaders have solidified their positions, focusing on end-to-end source-to-pay (S2P) capabilities, domain and category expertise, and advanced digital solutions.
     • Enhancements: They are enhancing their offerings to support tail-spend management, risk management, market intelligence, and direct spend management.
   • Major Contenders:
     • Capgemini, Chain IQ, Cognizant, Conduent, Corbus, Corcentric, Exela Technologies, EXL, HCLTech, LogicSource, Tech Mahindra, Wipro, and WNS Procurement: These providers are investing in focused digital solutions and capabilities across S2P.
     • ESG and Risk Management: Many are also enhancing their ESG and risk management capabilities.
   • Aspirants:
     • Aquanima, Conduent, Datamatics, Dragon Sourcing, Nexdigm, and Velocity Procurement: These providers focus on specific procurement and sourcing services and have limited scale and digital maturity.

6. GEP Profile:

   • Overview:
     • Scale of Operations: GEP has over 1,000 FTEs, with a significant distribution across S2C and P2P processes.
     • Spend Managed: GEP manages over $450 billion in external client spend.
     • Service Offerings: GEP offers a digital-based end-to-end procurement-as-a-service offering, including sourcing and category management, procurement operations, supplier relationship management, and procurement transformation.
     • Technology: Provides an AI-powered unified S2P platform through the SaaS model.

Conclusion

The procurement outsourcing market is evolving rapidly, driven by the need for digital transformation and cost reduction. Leading providers are investing heavily in advanced technologies and capabilities to support their clients' needs, while major contenders are focusing on specific areas to enhance their offerings. Aspirant providers are expanding their scale and capabilities but face challenges in catering to the needs of large global buyers.