Sourcing Software: Introduction
- Sourcing software is also known as e-sourcing or eSourcing software. Strategic sourcing software focuses on the selection and identification of suppliers. Sourcing software has some similar functions as procurement software; or we can say that it is a module which falls under the category of procurement software.
- Sourcing software provides real-time capabilities to its customers. However, the main work of sourcing software is to maintain a high level of collaboration throughout the entire sourcing process. It provides a centralized portal with built-in communication system to customers who want to view bids, quotes, and proposals.
- Sourcing software offers numerous features such as eRFx (electronic request for “X”) management, document management, side-by-side comparison tool, integration (esourcing forum), and reporting to customers
- The global sourcing software market is projected to expand at a rapid pace during the forecast period, due to increase in demand for cloud-based sourcing software among organizations
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Global Sourcing Software Market: Dynamics
Global Sourcing Software Market: Key Drivers and Restraints
- Increase in demand for automation of sourcing processes such as supplier-bidding, invoice RFx, supplier negotiation, supplier evaluation, and supplier selection as well as other sourcing activities, is expected to boost the sourcing software market during the forecast period. This is primarily because automating sourcing process or activities helps customers to avoid loss at many stages of the sourcing process; supports in gaining end-to-end visibility in the supply chain management systems; and remove manual errors in supply chain systems.
- Rise in adoption of cloud-based sourcing software among organizations are expected to boost the demand for sourcing software across the globe. This is primarily because cloud-based sourcing software have lower deployment cost and a pay-per-use billing model for IT-related services.
- Increase in online shopping and significant shifts in consumer buying patterns have pushed the demand to effectively manage inventory and other sourcing processes. This, in turn, is projected to drive the global sourcing software market in the next few years.
- Rise in demand from end-users for simplifying and synchronizing the supply chain management system is estimated to propel the global sourcing software market during the forecast period
- Emergence of digital technologies such as artificial intelligence (AI), cloud computing, and the Internet of Things (IoT) across the globe is anticipated to boost the demand for sourcing software during the forecast period
- However, data security and privacy concern are expected to hamper the sourcing software market during the forecast period
- Increase in dynamic sourcing service requirements is projected to restrain the global sourcing software market in the next few years
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Impact of COVID-19 on Global Sourcing Software Market
- Increase in cases of COVID-19 across the globe is resulting in economic slowdown. Developed countries are strongly affected by this pandemic. Most of the manufacturing or production of goods are temporarily suspended all over the world. Businesses have adverse impact in most of the countries due to partial or full lock down. This, in turn, is projected to indirectly hinder the global sourcing software market in the next few years.
- Lack of industrial activity is expected to result in low cash flows, further impacting the funding of projects. However, companies are collaborated with technology giants to develop industrial digitalization technologies to minimize the negative consequences of COVID-19 pandemic on the supply chain and their businesses.
North America to Hold Major Share of Global Sourcing Software Market
- In terms of region, the global sourcing software market can be divided into North America, Europe, Asia Pacific, Middle East & Africa, and South America
- North America dominated the global sourcing software market in 2019, due to the high need to optimize procurement through accurate sourcing process
- The sourcing software market in Asia Pacific is projected to expand at a rapid pace during the forecast period. This can be attributed to growing foreign player investments in the countries such as India. For instance, GAP Inc., Tesco.com, and Walmart Inc., are sourcing their products from India and planned for establishing their sourcing centers.
Global Sourcing Software Market: Competition Landscape
Several local, regional, and international players are active in the sourcing software market with a strong presence. Rapid technological advancements have led to opportunities in the global sourcing software market. Sourcing software vendors are focused on inorganic growth strategy such as strategic collaborations and merger and acquisition activities with technology partners to develop innovative and advanced solutions to improve their offerings and market reach.
Key Players Operating in Global Sourcing Software Market
- Ariba Inc.
- Capgemini SE
- Coupa Software Incorporated
- IBM Corporation
- Infor Inc.
- JAGGAER, Inc.
- Microsoft Corporation
- Oracle Corporation
- Zycus Inc.
- SAP SE
Global Sourcing Software Market: Research Scope
Global Sourcing Software Market, by Deployment
Global Sourcing Software Market, by Enterprise Size
- Small and Medium Enterprise
- Large Enterprise
Global Sourcing Software Market, by End-user
- IT and Telecommunication
- Retail & E-commerce
- transportation & Logistics
Global Sourcing Software Market, by Region
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa
- South America
- Rest of South America
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:
- Customer Experience Maps
- Insights and Tools based on data-driven research
- Actionable Results to meet all the business priorities
- Strategic Frameworks to boost the growth journey
The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.
Below is a snapshot of these quadrants.
1. Customer Experience Map
The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.
2. Insights and Tools
The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.
3. Actionable Results
The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.
4. Strategic Frameworks
The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.
The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?
7. Which government regulations might challenge the status of key regional markets?
8. How will the emerging political and economic scenario affect opportunities in key growth areas?
9. What are some of the value-grab opportunities in various segments?
10. What will be the barrier to entry for new players in the market?
Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.