Consoles Market Procurement Intelligence Report

The market for End User Software and Hardware and its sub-segments such as Consoles are at an interesting intersection. In a bid to differentiate themselves in an overcrowded technology space, suppliers are now focusing on creating industry-specific specialized products. Buyers see this trend as an opportunity to procure more targeted solutions and are developing internal capabilities to identify and leverage innovations in the supplier base.

Buyers are showing an inclination to onboard suppliers whose offerings span beyond Consoles. The practice brings in several advantages such as rationalization of supplier base, economies of scale and reduced category management cost.

The supply market has undergone several structural changes including introduction of several new vendors every year, M&As and vertical integration efforts of suppliers. This has resulted in some issues such as erosion of previously established supplier relationships but has also opened new opportunities to onboard new suppliers that offer a solution with better fitment or a wider range of offerings in .

Trends like these and many others discussed in this report are necessitating a relook at the way Consoles is procured and the procurement cost saving opportunities that exist.

Sometimes, procurement functions are unable to timely alter their practices while responding to market conditions. Industry experts acknowledge that periodically reviewing procurement best practices and adopting learnings from across procurement categories can help procurement teams respond to market needs in a more agile way. This report combines our experience of other categories with Consoles procurement insights and hand picks best practices that can work for category managers delving in this market.

For example, Needs of buyers can vary depending on the industry where buyers operate. For instance, buyers from the financial services industry give high importance to regulatory compliance and data security, whereas buyers from the e-commerce industry prioritize high throughput, low response time, and high scalability. Hence, service providers with a strong knowledge of the security, compliance, and governance needs of buyers' industries and a proven track record of performance with respect to these aspects should be prioritized.

Developing a strong understanding of the potential vulnerabilities of service providers can help buyers limit their potential losses and also gives the bargaining power to demand services from more robust measures in the SLA.

Adequate RFP response time should be built in for prospective suppliers to enable them understand the scope and usage patterns properly.

Consoles procurement managers also need to proactively identify and mitigate potential risks that can arise in the supply chain or contracts for Consoles procurement. Some examples include: