Token Service Providers Category Procurement Intelligence Report

A changing ecosystem within the Specialist Software and Hardware market also affects the procurement process, cost dynamics and supplier attractiveness for the buyers of Token Service Providers. Stringency in the regulatory norms pertaining to data protection and cybersecurity has increased compliance and security burden on suppliers. These additional costs have a potential to drive marginal increase in prices across the key geographies.

The ecosystem of Token Service Providers is part of an industry which is developing a host of new transformative technologies. Billions of dollars are being invested into this industry, and companies are in cutthroat competition to discover the next game changing technology, hardware, software, and services.

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

It has become imperative for category managers to remain as agile as possible in terms of their procurement practices. However, it is not always easy to quickly spot and implement alternative practices in a category like Token Service Providers. To help quick decision making, this report advises on several procurement best practices that have worked well for category managers.

For example, Buyers must clearly define clauses pertaining to the ownership of subcontracting services that are not a part of preferred suppliers' portfolios. Subcontractors should be bound by the same terms and conditions as the main contractor to ensure consistency in quality and manage any adverse event such as data breach.

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.

Transferring to a new supplier can be often costly and can further get exacerbated by instances of vendor lock-ins. Buyers must scrutinize the offerings of service providers for any possibilities of vendor lock-ins and demand client testimonials from service providers to assess such possibilities. Watch out for products/services that are priced excessively low, as they can often result in costly lock-ins.

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