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Sourcing Software Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

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  • 100 Pages
  • January 2021
  • Region: Global
  • Mordor Intelligence
  • ID: 4828125
The global sourcing software market is expected to register a CAGR of over 7.4% during the forecast period (2021 - 2026). 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.

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.

Competitive Landscape

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.

Reasons to Purchase this report:
  • The market estimate (ME) sheet in Excel format
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Table of Contents

1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
4.1 Market Overview
4.2 Introduction to Market Drivers and Restraints
4.3 Market Drivers
4.3.1 Increased need for cost reduction in the sourcing process
4.3.2 Growing Demand for Automation of the Sourcing Process
4.4 Market Restraints
4.4.1 System integration challenges
4.4.2 Requirement of Dynamic Sourcing Service
4.5 Industry Attractiveness - Porter's Five Force Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
5.1 By End User
5.1.1 Manufacturing
5.1.2 Retail
5.1.3 IT & Telecom
5.1.4 Healthcare
5.2 Geography
5.2.1 North America
5.2.2 Europe
5.2.3 Asia Pacific
5.2.4 Rest of World
6.1 Company Profiles
6.1.1 JAGGAER, Inc.
6.1.2 Coupa Software Incorporated
6.1.3 Zycus Inc.
6.1.4 Ariba Inc.
6.1.5 IBM Corporation
6.1.6 Oracle Corporation
6.1.7 Microsoft Corporation
6.1.8 Infor Inc.
6.1.9 Capgemini SE

Companies Mentioned

A selection of companies mentioned in this report includes:

  • JAGGAER, Inc.
  • Coupa Software Incorporated
  • Zycus Inc.
  • Ariba Inc.
  • IBM Corporation
  • Oracle Corporation
  • Microsoft Corporation
  • Infor Inc.
  • Capgemini SE