IDC: To Win Engagements, eProcurement Service Vendors Must Beef Up Portfolios to Include eProcurement IT and Business Process Support Services

FRAMINGHAM, MA – MARCH 5, 2001 – Although still in its infancy, the eprocurement services market will grow exponentially in the next 12 to 24 months as the market moves from early adopters to early majority stage. To align with this opportunity, IDC believes eprocurement service vendors must work creatively and proactively to win eprocurement engagements.

 

"The eprocurement services opportunity didn't exist 18 months ago," said Nelly Zaharinov, senior analyst with IDC's Supply Chain Services research program. "However, with a significant number of companies expected to move their indirect and even direct procurement online, the need for a new breed of service provider is on the rise. This new breed is defined as the eprocurement services firm that offers services from upfront needs assessment to post implementation change management services to financial processing and catalogue management services to meet client expectations for a complete eprocurement solution."

A new end-user survey published by IDC reveals that in this stage of the market, eprocurement service vendors that are targeting small and midtier companies should remain focused on indirect procurement goods such as MRO (maintenance, repair, and operations) and IT supplies. However, vendors targeting large companies should expand their service portfolio to include direct goods eprocurement, which will require strategic sourcing and category management expertise.

The IDC study surveyed 68 U.S.-based purchasing professionals who said they had already used or were committed to using eprocurement in the next 12 months. IDC examined the services role in accelerating and maximizing an eprocurement investment, the type of direct and indirect goods to be eprocured within the next 12 months, the near-term service opportunities by customer size, and decision factors influencing customers’ choice of eprocurement service vendor.

Results of this survey can be found in Winning eProcurement Engagements: Early Customers Give Hints to Success (IDC #B23669). To purchase this report, contact Jim Nagle at 1-800-343-4952, extension 4549, or at jnagle@idc.com.

About IDC

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies and the financial community. Additional information can be found at www.idc.com.

IDC is a division of IDG, the world's leading IT media, research and exposition company.

 

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