The global procurement software market to grow at a CAGR of 10.16% during the period 2017-2021.
Global Procurement Software Market 2017-2021, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the Key vendors operating in this market.
One trend in market is increased use of procurement analytics. Analytics is one of the fastest emerging trends in the P2P outsourcing market. Analytical solutions use statistical modeling tools and methodology for the in-depth analysis of procurement process. Advanced analytical tools such as predictive analytics provide insights related to procurement process by clustering many factors anticipated in the SCM systems. The insights provided by the advanced analytical tools help CPOs in their key decision making process. The complexities in the supply chain process are increasing in organizations due to increase in number of suppliers and range of materials that are being procured. There is also rising threat from numerous transactional frauds in the process and errors in the procurement process management systems. Analytical services help organizations to resolve the issues of fraud and errors through automated fraud detection systems embedded with analytical tools. Companies are working to ensure profitability and right vendor selection to purchase goods or services. In addition, some organizations are working with data analytics companies to gain insights about the supplier, market, and category of the procurement process, which helps them to recognize the aspects of cost reduction.
Further, the report states that one challenge in market is lack of skilled professionals. Procurement software is complex, and end-users need extensive training to use it. This slows down the procurement cycle and reduces procurement efficiency. For instance, in 2015, more than 70% of the business in the UK have come across difficulties to hire procurement professionals for this sector over the past 12 months. Developing countries such as China and India are still lagging in terms of adoption of the software, due to the lack of skilled procurement professionals. Even the few that have adopted this software do not have sufficient knowledge on how to use it to its optimum efficiency.