The global sourcing software market is expected to register a CAGR of over 7.4% during the forecast period (2020 - 2025). The increasing internet shopping and significant shifts in consumer buying patterns, different trends are shaping the industries in the last few years. With aggressive competition, industries are struggling to maintain the inventory and find profitability to initiate them to take a defensive position.
- Data analysis has played a major role in reinventing the sourcing market and forcing sourcing software suppliers to be innovative in how they help customers look at data.
- The continuous development in the new technologies of Artificial Intelligence (AI), cloud computing, and the Internet of Things (IoT) and its implementation across procurement processes aid to pave the new way for the more significant development of software and solutions.
- Procurement services are increasingly being automated owing to greater adoption of mobile computing and cloud-based applications, which are assisting procurement and sourcing processes.
Scope of the Report
Sourcing software is also known as strategic sourcing software which focuses on the identification and selection of suppliers. It achieves this by making collaboration easier, managing documents such as RFPs and providing a platform for making easy comparisons. It can be used to maintain a high level of collaboration throughout the entire sourcing process.
Key Market Trends
Retail Industry to Hold Significant Share
- The digital transformation in the retail industry supply chain is anticipated to drive the retail sourcing and procurement market. Advancements in digital technologies are revamping the supply chain management and are poised to change the way procurement delivers value to retailers.
- According to a recent survey, around 84% of procurement businesses believe that digital transformation would substantially change the way services are offered over the next three to five years.
- With the rise of internet shopping and significant shifts in consumer buying patterns, different trends are shaping the retail industry in the last few years. With an aggressive competition, retailers are struggling to maintain the inventory and find profitability to initiate them to take a defensive position
- Further, with the advent of digital technologies such as artificial intelligence (AI), blockchain, and robotics, there will be an increased level of stock visibility for both vendors and retailers and greater transparency. Blockchain enables retailers to gain customer trust by maintaining sourcing data, chain-of-custody information and supporting autonomous transactions.
Asia-Pacific to witness Significant Growth
- The rapid economic growth in emerging countries such as India and China are anticipated to provide opportunities for sourcing solution providers. According to the World Bank, India’s GDP is estimated to grow at 6.7% in 2017 and further at 7.3% in 2018. While, China’s GDP is expected to grow at 6.8% and 6.4%, respectively, in 2017 and 2018. Changing demographics, increasing disposable income and urbanization are driving growth in the industries such as manufacturing, retail, IT and telecom in India.
- Also, increasing private and foreign player investments in the country is propelling the overall growth. For instance, Walmart Inc., Tesco.com and GAP Inc. are sourcing their products from India and are shifting towards establishing their sourcing centers instead of third-party buying centers. Rapid economic growth in emerging economies and increasing disposable income are expected to serve as an opportunity for retail sourcing and procurement vendors.
The global sourcing software market is moderately competitive. The increase in the need for sourcing software and solutions, different vendors are forming strategic partnerships with different technology leaders to combine their products with the latest technologies or some automation in the sourcing.
- September 2018: Coupa Software acquired technology assets of DCR Workforce, a provider of contingent workforce management and services procurement software. The acquisition further enhances Coupa’s vision of enabling businesses to manage all their organization’s business spend, including contingent workforce spend, within a comprehensive BSM platform.
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