STAMFORD, Conn.–(BUSINESS WIRE)–The U.S. public sector is making strenuous efforts to improve procurement systems amid sweeping change accelerated by the COVID-19 pandemic, according to a new research report released today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and consulting firm.
The 2022 ISG Provider Lens™ US Public Sector – Procurement BPO, Transformation and Software Platforms report reveals that the pandemic has forced government agencies to update many functions that were long considered barred from change, including procurement. Even before COVID-19, growing cost pressures, demands for digital capabilities, and end-of-life legacy systems were already weighing heavily on agencies. Blockages and supply chain issues have forced the issue.
“While the pace of digital transformation has historically lagged in the public sector, the disruptions caused by the pandemic, along with ever-escalating cybersecurity threats, have caused a dramatic increase in demand for digital capabilities,” said Nathan Frey, Partner, ISG Public Sector. “Doing nothing is no longer an option.”
Other unexpected changes prompting agencies to improve their operations include the need to support more knowledge workers in remote locations, a rapid decline in the public sector workforce in 2021, and issues of insecurity and data compliance, the report said.
ISG’s findings strongly suggest an explosion in US public sector spending on procurement software, business process outsourcing (BPO), and transformation this year. Public sector organizations, especially at the state and local levels, seek both immediate operational improvements and cost reductions, as well as assistance in implementing more substantial changes over time.
“Many agencies are looking for software platforms to standardize and improve their procurement systems and BPO services to improve efficiency and make costs more predictable,” Frey said. “After these initial steps, more agencies are likely to embrace a full-fledged digital procurement transformation, likely around 2025.”
The report identifies key benefits of procurement software platforms, BPO services and transformation of public sector organizations. For example, agencies can dramatically improve their operations by using software platforms that include automation, machine learning, and natural language processing applied consistently and efficiently. Case studies suggest first-year operational savings average between 15 and 30 percent.
The 2022 ISG Provider Lens™ US Public Sector – Procurement BPO, Transformation and Software Platforms report assesses the capabilities of 27 providers in three quadrants: software platforms and solutions, BPO services, and digital transformation services.
The report identifies GEP as a leader in all three quadrants. He names Accenture, IBM and Infosys as leaders in two quadrants each and Corcentric, Coupa, Ivalua, JAGGAER, Oracle and SAP Ariba as leaders in one quadrant each.
Additionally, Corbus is named a Rising Star – a company with a “promising portfolio” and “high future potential” as defined by ISG – in two quadrants. Corcentric, Proactis and Tech Mahindra are named Rising Stars in one quadrant each.
A customized version of the report is available at EPG.
The 2022 ISG Provider Lens™ US Public Sector – Procurement BPO, Transformation and Software Platforms report is available for subscribers or one-time purchase here. Web page.
About ISG Provider Lens™ Research
The ISG Provider Lens™ Quadrant research series is the only service provider assessment of its kind to combine data-driven empirical research and market analysis with the consulting team’s real-world experience and insights. world of ISG. Companies will find a wealth of detailed data and market analysis to help them select appropriate sourcing partners, while ISG advisors will use the reports to validate their own market knowledge and make recommendations to client companies. from ISG. The search currently covers providers offering their services worldwide, across Europe, as well as in the US, Canada, Brazil, UK, France, Benelux, Germany, Switzerland , Nordics, Australia and Singapore/Malaysia, with additional markets to be added. in the future. For more information on the ISG Provider Lens research, please visit this Web page.
A complementary research series, the ISG Provider Lens Archetype Reports, offers an initial assessment of providers from the perspective of specific buyer types.
ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and consulting company. A trusted business partner to more than 800 customers, including more than 75 of the world’s 100 largest enterprises, ISG is committed to helping enterprises, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The company specializes in digital transformation services, including automation, cloud, and data analytics; procurement advice; governance and risk management managed services; network operator services; design of strategy and operations; change management; business intelligence and technology research and analysis. Founded in 2006 and headquartered in Stamford, Connecticut, ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries – a global team known for its innovative thinking, market influence, deep expertise in industry and technology and its world-class expertise. research and analysis capabilities based on the most comprehensive market data in the industry. For more information, visit www.isg-one.com.