Business Function Specific Software Category Procurement Intelligence Report

Several macro changes in the dynamics of overall Specialist Software and Hardware as well as Business Function Specific Software procurement trends are poised to change the business practices and procurement thumb rules. Global market is facing a shortage of professionals with requisite skills and training. Minimum wages and stringent regulations are compelling suppliers to increase their employee expenses which are expected to have an inflationary impact on buyer's procurement cost.

Buyers are showing an inclination to onboard suppliers whose offerings span beyond Business Function Specific Software. 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 .

Category managers need to take note of the potential of these developments and reassess the changes required in their procurement practices.

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 Business Function Specific Software procurement insights and hand picks best practices that can work for category managers delving in this market.

For example, Investing in benchmarking studies not only helps category managers to improve their knowledge about market pricing or billing rates but also in negotiating with suppliers. In fact, this holds true for all technology procurement sub-categories.

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.

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.

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