The analysis, which was done by market research firm Technavio, reflects a major shift to automated systems in governments worldwide, particularly in the field of procurement software, and forecasts companies expected to have an impact in the market from 2017 to 2021. In an overview of the full report, Technavio prefaces:
The global procurement software market is highly competitive and fragmented due to the presence of a large number of regional and international vendors across the globe. One of the major factors responsible for the growing competition in the market is the high demand for procurement software among enterprises. To survive and sustain in this intensely competitive environment, vendors are focusing on improving their delivery models with technology.
Vendors are divided into two categories in the overview, including a list of the six key vendors and 15 other prominent vendors expected to impact the market in the forecast period. Oracle, which is headquartered in Redwood Shores, was the one California company to make the list of key players. Founded in 1977, the company provides a range of IT solutions, from procurement to enterprise resource planning, to more than 145 countries today, partnering with companies such as Accenture and Infosys.
Technavio highlights the growing popularity of cloud procurement solutions and the expected decline of on-premise systems. While Oracle already offers a cloud-based procurement solution, it's making moves to further automate certain applications. The company released official plans for its new Adaptive Intelligent Applications (AI Apps) on Jan. 18 at an Oracle Cloud Analyst Summit. The new applications will be available this spring as add-ons to the company's customer experience, human capital management, supply chain management and ERP cloud solutions, allowing them to "learn" and make recommendations as they gather data.
As for the remaining companies in the report, Technavio predicts Coupa Software (San Mateo), Ivalua (Redwood City) and Tradeshift (San Francisco) will be influencers in the market going forward. Although the three organizations didn't make the list of top six vendors, each of them in recent months has taken steps to expand their offerings and reach.
On Monday, Tradeshift announced a partnership with IT firm Wipro. As a result of the partnership, Wipro will begin providing Tradeshift’s e-procurement solution. In a similar fashion, Ivalua announced it will begin combining KPMG’s procurement processes with its source-to-pay cloud platform. As for Coupa, the company announced in early January that it acquired the data warehouse of Spend360 International Ltd., which has processed more than $1.3 trillion in spend to date.
However, it should be noted that the aforementioned four companies are headquartered in California locales. Other companies mentioned in Technavio's report, such as IBM and SAP, have branches located in the state as well.
Here's a glance at Technavio's assessment of the global procurement software market and where it's headed:
(Graphic: Business Wire)
