Training Software Development Services Market Procurement Intelligence Report

A changing ecosystem within the Consultancy market also affects the procurement process, cost dynamics and supplier attractiveness for the buyers of Training Software Development Services. Certain non-compliance scandals in the broader professional services industry has pushed both clients and suppliers to put in proper processes and protocols that reduce non-compliance, protect data and information and demonstrate ethical business practices.

The market is rapidly showing signs of a great divide - at one extreme is a low-cost market with almost commoditized services and at the other end is the market for high cost specialized services. Training Software Development Services vendors are adopting starkly different business models and cost structures in an effort to address both the markets.

Many major Training Software Development Services suppliers are seeking inorganic growth to diversify their services and gain access to new products and new technologies at a lower cost. The strategy serves consultancy companies well as they can pitch for a larger scope of work and truly become strategic partners of their clients.

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 Training Software Development Services procurement insights and hand picks best practices that can work for category managers delving in this market.

For example, Buyers need to adopt a single sourcing model instead of sourcing from different consultants to strengthen their partnership with the selected service provider. This also reduces management complexity, as they need to deal with a single Point of contact.

Buyers must request for breakup costs for each service to gain better visibility into service providers pricing.

Category managers must ensure that they have clearly identified and listed down potential negotiation levers to maximize the value of their category spend before entering into contract-related discussions with service providers. Common negotiation levers to maximize value include deadlines, terms related to payments, (including fees, expenses, and payment timelines) and assistance required from the buyer's organization.

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