What to Watch<\/strong><\/span><\/p>\nAt HfS Research, we believe that technology is becoming a real differentiator in the Procurement Business Process Outsourcing market.\u00a0 From analytics to platforms to dashboards, the exposure to – and adoption of – IT Procurement offerings are changing the market landscape, and one of things that we will watch most carefully from this acquisition is the degree to which the Procurian technology suite becomes integrated into the core of Accenture\u2019s offerings and becomes part of a simplified technology roadmap over time.\u00a0\u00a0 We will also want to watch how the other leading Procurement BPO service providers respond to this acquisition, with regards to how they try to match the breadth of sourcing expertise this creates, and how they respond to the changing technology landscape as well.\u00a0 Procurement and Sourcing specialist providers, such as GEP (Global eProcure), Proxima, Denali and even, potentially, Xchanging, now come into play as potential acquisition targets for the Tier 1 BPOs seeking further sourcing and technology depth and expertise.<\/p>\n
Most acquisitions in the services world result in some degree of client defections after the event, and with several Procurian clients having come from partnerships with other service providers such as Genpact, we will be anxious to see if they stay with Accenture – and how Genpact and others respond.\u00a0 Similarly, will the SMB clients that Procurian has developed find a home in Accenture both as procurement clients but also as potential buyers of other BPO offerings as well? \u00a0Clearly, both merging parties feel comfortable that the exiting clientele will stay loyal with the merged entity and additional BPO services added over time, or they wouldn’t have ventured into this arrangement.<\/p>\n
We will also be interested in what happens organizationally during the post-merger integration, to see where the procurement leadership team is itself sourced.\u00a0 How will the strong Procurian leadership team of today be integrated with the retained Ariba team as well as procurement specialists from Management Consulting and Technology? Accenture has a decent track record of develop executives who arrive via acquisition, and clearly the Procurian leadership team feels more comfortable with Accenture as their suitor, as opposed to other potential providers, which were also \u00a0interested in the firm.<\/p>\n
Finally, we will be observing whether the stellar efforts Procurian has made over the last several years to create its cherished community of clients will be nurtured and well-managed post-merger and used to launch Salvino’s much-vaunted Sixth\u00a0Generation BPO ecosystem. \u00a0This is clearly newer turf for Accenture and it’ll be interesting to see how the community evolves in a broader client environment.<\/p>\n
In any event, this is a momentous transaction in the history of Procurement Outsourcing which will have major ripple effects across all the other service providers and likely re-shaping our \u201cWinner\u2019s Circle\u201d for 2014, as a result of Salvino\u2019s decision to double-down on sourcing.<\/p>\n
Michael J Salvino (pictured above) is\u00a0\u00a0is group chief executive of Accenture Business Process Outsourcing (BPO). \u00a0You can access his \u00a0bio here<\/a>.\u00a0<\/em><\/p>\nThe HfS Point of View of the merger, authored by Charles Sutherland and Phil Fersht, can be downloaded here<\/a>.<\/em><\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":"
On a Sourcing Mission – Accenture's Mike Salvino adds Procurian to his previous Ariba services acquisition You know when a…<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[48,835,78,81,838,836,93,830,97],"tags":[303],"ppma_author":[19],"yoast_head":"\n
Accenture procures procurement's prize property: Procurian - Horses for Sources | No Boundaries<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n