SINGAPORE & KUALA LUMPUR, Malaysia--(BUSINESS WIRE)--Enterprises in Singapore and Malaysia are on the verge of making major changes to their procurement operations that, in some instances, were long overdue, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.
The 2022 ISG Provider Lens™ Procurement BPO and Transformation Services report for Singapore and Malaysia finds a growing appetite for these services after the COVID-19 pandemic intensified pressure on enterprises in the two countries to optimize their procurement functions. The cumulative effects of lockdowns, border closings, restrictions on movement, remote work requirements and increased risk have changed the region’s procurement market significantly since early 2020, the report says.
“Poor, outdated procurement and supply chain systems that weakened many Singaporean and Malaysian enterprises before the pandemic threatened to further disrupt them after the virus hit,” said Deepraj Emmanuel, director, ISG Asia, in Singapore. “This is driving companies to look to service providers for outsourcing and business transformation.”
Because the procurement market in these countries had been relatively stable before the pandemic, there was limited growth in the skills needed to compete, ISG says. For example, many enterprises still do purchasing manually and use disparate procurement systems operating in silos, so decision-making is slow. Now the race is on to make procurement more efficient and sustainable.
“Procurement in Singapore and Malaysia is on the cusp of genuine change,” said Emmanuel. “Many enterprises are ready to make their procurement organizations more agile and ready for the future.”
The balance of demand for services is different in Singapore and Malaysia than in other regions, the report says. For example, because wages are generally lower than in markets such as Europe and the U.S., cost optimization is not a primary reason for most organizations to seek business process outsourcing (BPO). However, enterprises should consider engaging with service providers to carry out digital transformations of their procurement operations to achieve measurable business outcomes, ISG says. The report also examines the growing demand for centralization, standardization and other initiatives by Singaporean and Malaysian enterprises preparing for the new era in procurement.
Enterprise chief procurement officers and sourcing and vendor management professionals can use the report to optimize transactional procurement, plan strategic sourcing and better understand the service provider landscape in the region.
The 2022 ISG Provider Lens™ Procurement BPO and Transformation Services report for Singapore and Malaysia evaluates the capabilities of 16 providers across two quadrants: BPO Services and Digital Transformation Services.
The report names Accenture, GEP, IBM and Infosys as Leaders in both quadrants and Genpact as a Leader in one quadrant.
In addition, DXC Technology and WNS Denali are named as Rising Stars – companies with a “promising portfolio” and “high future potential” by ISG’s definition – in one quadrant each.
A custom version of the report is available from GEP.
The 2022 ISG Provider Lens™ Procurement BPO and Transformation Services report for Singapore and Malaysia is available to subscribers or for one-time purchase on this webpage.
About ISG Provider Lens™ Research
The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.
A companion research series, the ISG Provider Lens Archetype reports, offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.
About ISG
ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 800 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.
