IS Application Software | Market, Trends, Growth | Suppliers Analysis

Strategic Sourcing Guide to IS Application Software Procurement

Overview

Business practices within IS Application Software market are heavily influenced by changing trends across the category as well as within the broader Specialist Software and Hardware market. 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 .

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

Rise in the cost of certain essential assets and supplies required to deliver IS Application Software is making a significant addition to the supplier's overall expenditure. This could have an inflationary impact on buyer's procurement expenditure in the IS Application Software market.

As a result, category managers need to closely monitor the IS Application Software procurement trends and identify changes required in their procurement environment for the category.

IS Application Software Procurement Best Practices

The report discusses in detail the best practices that have served well the category managers responsible for IS Application Software procurement.

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

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.

Buyers should ask for a detailed account of the data protection capabilities of the supplier. In addition, buyers should also enquire regarding the redundancies available during instances of outages or disruptions. While some providers can provide backup, others may have limited capabilities in hardware redundancy.

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Risks in IS Application Software procurement

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

Procurement without consulting the actual users of IS Application Software may result in a mismatch in expectations of the buyer's internal stakeholders versus the actual contract executed
Contract-related risks where unfavorable credit terms may severly penalize buyers for delayed payments or entitle the supplier to demand pre-payments or shorten the payment terms are not very common in the category but they do exist in certain situations where buyers' liquidity or financial health is in question
An increase in the integration of IT systems is amplifying the risk of cyberattacks and theft of sensitive data

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Who should read this report

The report is intended to serve as a one-stop reference guide for IS Application Software procurement strategy and offers a perfect blend of category basics with deep-dive category data and insights. Therefore, it is ideal for category beginners looking for “IS Application Software: Procurement Report 101” as well as for category experts actively tracking the global IS Application Software procurement market.

You may have just initiated your research to design a winning IS Application Software procurement strategy, or you may be a category expert looking for strategic insights and updated data.Either ways, the report has your requirements covered.

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Key questions on IS Application Software procurement answered by this report

Procurement decisions can prove to be costly in the absence of careful deliberation and evaluation of every available option. In fact, more than 90% of the decision makers we work with acknowledge that timely availability of up-to-date category intelligence can help them make better purchasing decisions. More than 80% of them believe that in-house category intelligence needs to be updated periodically to achieve full benefits. If you have read so far, we are quite sure you agree!!

The IS Application Software procurement report helps take more informed decisions by placing all the critical information and advice at the fingertips of a decision maker. It also specifically answers some of the key questions that we have been routinely asked during our industry outreach initiatives:

What is the spend potential in the IS Application Software market?
What is the correct price to pay for IS Application Software? What are the key trends and factors that influence current and future pricing?
Which selection criteria are the most important for IS Application Software Suppliers Market?
Who are the top IS Application Software suppliers? What are their cost structures?
Which negotiation levers can reduce IS Application Software procurement cost ?
What are supplier margins in IS Application Software market?
What are the best practices for IS Application Software procurement and what are the potential risks?

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IS Application Software Category Insights: What is inside

The IS Application Software market report offers a complete picture of the supply market and analyzes the category from the perspective of both buyers and suppliers. Analysis of the category trends, procurement best practices, negotiation levers and overall category management strategy advisory are interspersed with in-depth data and commentary on spend outlook, pricing ecosystem and supplier landscape drilled down to a region-level coverage.

Data

A key highlight of this report is the in-depth outlook created on IS Application Software procurement spend and pricing trends. The report further delves deep into the aspects of cost structure, total cost of ownership and supplier margins for IS Application Software. A dedicated section to supplier profiles and evaluation helps decision makers cast a wider procurement net and identify gaps in existing relationships.

Insights

Along with specific category and supplier intelligence, the publication also includes curated insights on IS Application Software market trends, price influencers and inherent risks. These insights help the decision makers prepare for market shaping trends in advance and create alternative strategies for changes in the market conditions.

Advisory

Additionally, the report also advises on the best practices and strategies to manage the IS Application Software category efficiently. Negotiation levers and opportunities are explained in detail along with quantification of their potential. Benchmark KPIs for supplier and buyer performance management are also aggregated to better organize the category objectives. Other themes of advisory include ideal procurement organization structure, enablers to achieve KPIs or category objectives and ideal SLAs to have with suppliers.

Category Ecosystem

Buyer and supplier ecosystem
Competitiveness index
Buyer and supplier power
Threat of new entrants and substitutes

Global and Regional Sourcing Insights

Category spend
Spend growth
Dynamics
Opportunities

Pricing and Cost Analysis

Pricing outlook and data
Drivers of pricing
Cost structure and inputs cost
Total cost of ownership
Pricing models and margins

Cost Saving Opportunities & Negotiation Strategies

Buyer and supplier side levers
Quantified cost saving opportunities
Negotiation strategies and quantified outcome

Procurement Best Practices, Strategy and Enablers

Procurement excellence
Sustainability and innovation
KPIs and category enablers
Risk management and outsourcing

Vendor Analysis

RFx essentials and selection criteria
SLAs
Supplier evaluation metrics
Detailed supplier profiles

Our research is complex, but our reports are easy to digest. Quantitative analysis and exhaustive commentary is placed in an easy to read format that gives you an in-depth knowledge on the category without spending hours to figure out “what does it mean for my company?”

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Category Research Framework

SpendEdge presents a detailed picture of IS Application Software procurement solutions by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key category influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.