Intelligent procurement outsourcing services drive a 46% increase in sourcing efficiency and automation, and a 23% improvement in purchase cost savings and cost avoidance
The Hackett Group, Inc. (NASDAQ: HCKT), a leading generative artificial intelligence (Gen AI) consultancy and executive advisory firm, has released its latest Digital World Class® Matrix, focusing on the procurement outsourcing services marketplace. Procurement outsourcing service providers are delivering new capabilities and advanced technologies to help their clients navigate an increasingly volatile, uncertain, and complex global business environment.
Procurement organizations are facing enormous internal and external headwinds from increasing workloads, evolving global compliance requirements, governmental policy uncertainty, and increasing expectations from business stakeholders. These forces, coupled with the explosion of new generative and agentic AI solutions, compel procurement executives to take a critical look at their operating model design, strategic partners, and service placement options.
The Procurement Outsourcing Services Digital World Class® Matrix provides an in-depth guide to some of the most notable procurement outsourcing providers, including how the vendor services are aligned to meet the critical needs of procurement, information technology, and global business services leaders. The report evaluated 15 providers for their capabilities and value delivered to clients based on vendor briefings and extensive customer interviews across 16 different criteria.
Capability ratings assess a vendor’s capacity to provide procurement outsourcing services across critical operational areas, including procurement data management, intake management, requisition and purchase order (PO) processing, sourcing execution, and invoice processing. It also includes core service capabilities, including the ability to support global complexity, service breadth, infrastructure, quality and compliance, analytics, and enabling technologies.
Value realization ratings assess a vendor’s impact to key metrics covering transition and migration services, transformation capabilities, automation and efficiency, service experience, service value, and overall satisfaction and business value to the organization.
In this mature but evolving marketplace, adopters of procurement outsourcing services are realizing very tangible benefits across a variety of key metrics. End users report an average 52% improvement in procurement data management automation; a 57% average improvement in intake management, requisition and PO processing efficiency; a 23% average improvement in purchase cost savings and cost avoidance; and an 83% overall satisfaction rating for service experience and value.
Leading procurement outsourcing services expertly handle global complexities, providing a comprehensive range of solutions supported by strong infrastructure and reliable assistance. Their well-established methodologies for quality, risk management, and compliance ensure consistency and efficiency in operations.
They also leverage advanced AI, Gen AI and data intelligence to optimize process performance. They enhance operations through intelligent data cleansing, policy and compliance automation, autonomous orchestration, and digital assistants. Additionally, they provide tools for cycle-time optimization, category management, market intelligence, autonomous sourcing and advanced analytics – including conversational reporting – ensuring efficiency and strategic decision-making.
“The thoughtful integration of procurement outsourcing services into the overall procurement service delivery model provides companies significant flexibility, scalability and rapid adoption of leading-edge, AI-enabled technologies,” said Richard Gardner, senior director of Market Intelligence at The Hackett Group®. “Although procurement organizations have traditionally limited outsourcing usage to low-risk purchasing processes, the providers in this study showcase the differentiated value they can deliver to a broad scope of complex purchasing requirements.”
By using this comprehensive analysis, procurement professionals can make informed outsourcing decisions aligned with their strategic priorities and business value drivers.
Procurement Outsourcing Services Digital World Class® assessments are part of The Hackett Group’s full 59-page report. Digital World Class® assessments should be read in the context of the entire report. Download a complimentary summary of the procurement outsourcing research with registration. Contact us for inquiries about purchasing the full research report.
The Hackett Group® does not endorse any participant, vendor, product or service depicted in its research. This research should not be considered as advice that a buyer select only those participants based on their ranking or position on the Digital World Class® Matrix. You should not rely upon any material or information within this research as a basis for making any business, legal, financial or any other decisions. Any such reliance shall be solely at buyer’s risk. The Hackett Group® research publications consist of the opinions of its research organization and should not be interpreted as factual statements. To the fullest extent permitted by law, The Hackett Group® disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability, suitability or fitness for a particular purpose. The information contained in this research is provided on an “as-is” basis with no guarantees of completeness, accuracy, usefulness or timeliness. The Hackett Group® assumes no responsibility or liability for damages of any kind arising from any information, data, content, materials, or references within its research, including but not limited to direct, indirect, incidental, consequential, special, and punitive damages.
About The Hackett Group®
The Hackett Group, Inc. (NASDAQ: HCKT) is an IP and platform-based, Gen AI strategic consulting and executive advisory firm that enables Digital World Class® performance. Using AI XPLR™ and ZBrain™ – our ideation through implementation platforms – our experienced professionals help organizations realize the power of Gen AI and achieve quantifiable, breakthrough results, allowing us to be key architects of their Gen AI journey.
Our expertise is grounded in unparalleled best practices insights from benchmarking the world’s leading businesses – including 97% of the Dow Jones Industrials, 90% of the Fortune 100, 70% of the DAX 40 and 51% of the FTSE 100. Visit us at www.thehackettgroup.com.
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"The thoughtful integration of procurement outsourcing services into the overall procurement service delivery model provides companies significant flexibility, scalability and rapid adoption of leading-edge, AI-enabled technologies"
