Image-Processing Software Development Services Market Procurement Intelligence Report

The market for Consultancy and its sub-segments such as Image-Processing Software Development Services are at an interesting intersection. Most clients now prefer splitting a single project among different vendors as it enables them to allocate parts of a project to specialized professional firms and keep the supplier base wide enough. Some clients adopt this strategy to understand the capability and performance of individual supplier and then pick one or a smaller set of suppliers for future contract opportunities.

There are only a handful of \"Tier 1\" vendors in the Image-Processing Software Development Services market and they have traditionally enjoyed a premium in their pricing. However, Tier 2 suppliers are giving them a tough competition now as they can provide similar services at a lower cost. Many tier 2 suppliers achieve this parity by finding right talent at a relatively lower cost and maintaining lean operations without any frills.

In a bid to broaden their service portfolio, Image-Processing Software Development Services service providers are heavily investing in advanced technologies and tools such as RPA, AI, data analytics, and blockchain. This trend has a potential to increase their OPEX and in turn, procurement costs for buyers in the short term.

Trends like these and many others discussed in this report are necessitating a relook at the way Image-Processing Software Development Services is procured and the procurement cost saving opportunities that exist.

Image-Processing Software Development Services procurement best practices are moving towards a level of sophistication which is typically seen in traditional procurement categories. Category managers now have an attractive opportunity to adapt the best practices seen within this category as well as those being leveraged in other non-related categories. This report summarizes the best practices picked from across multiple categories that could work well for category managers involved with Image-Processing Software Development Services procurement strategy.

For example, 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.

Buyers should invite bids from industry competitors to ensure that the offers they receive are competitive. Service providers may be willing to offer a multi-year engagement at a reduced fee, which can be beneficial for category buyers in the long-term.

Adequate RFP response time should be built in for prospective suppliers to enable them understand the scope and performance requirements.

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