Spend Management Platforms for Outsourcers

I came across this announcement from Verticalnet today that discusses their new deal to power a Capgemini outsourcing practice. According to the announcement, "Capgemini Energy selected Verticalnet XE for its completely integrated functionality: from spend analysis to sourcing, from negotiation and contract management to e-procurement and catalog management services." While nothing is remarkable about this individual deal, it suggests to me that Spend Management technology vendors are clearly moving into two camps: those who will power the large outsourcers and those who will compete against them. Verticalnet appears to be in the first camp, joining Emptoris, who appears to be the provider with the most traction when it comes to powering larger Spend Management outsourcers from a technology perspective. In contrast, Ariba, through its internally developed capabilities as well as its Alliente and FreeMarkets acquisitions, delivers a competitive complete solution that competes with the likes of Accenture and IBM. Given the expected growth of the Spend Management BPO market, there's most likely room for both models, as well as category specific approaches as well.

Jason Busch

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