Beeline Customer Summit: Services Procurement Trends and Maturity in Asia Pacific (Dispatch 7)

Please click here for Dispatch 4, Dispatch 5, and Dispatch 6 in this series.

Summing up the overall contingent labor environment, VMS and MSP markets throughout the Asia Pacific region, Beeline presented a simple chart at their event looking at trends in India, China, Japan, Australia, Singapore and Hong Kong. The graphic, which we've republished below, features one view of market maturity, VMS penetration, acceptance of supplier funded models, technology integration, dependence on SOW type of work, supplier capability and access to technology, complexity of contract management and pay/bill administration and legal/regulatory tax issues in each region. It measures each country on a basic low, medium and high rating scale.

Understanding Contingent and Services Procurement Trends in Key Asia Pacific Markets (source: Beeline)

As we look at the chart and the relative ratings in each area, we're struck by the importance of stepping back and looking at how a handful of core questions can help an organization determine the general readiness of a region for a Western-style services procurement transformation program. In addition to the Beeline analysis, questions such as these (answered in the affirmative, in support of a significant investment), can be a guide:

  • In per capita GDP terms, how mature is the overall economy?
  • Does a particular challenge or requirement of the local economy (e.g., mineral wealth/mining) contribute to the need to pay additional attention to certain aspects of the contingent lifecycle?
  • Is there sufficient enough need/interest in SOW and project-based activities to warrant automation and monitoring?
  • Does the country have more than a dozen globally known success stories in other areas of procurement technology (e.g., P2P, e-sourcing, contract management, etc.) that are easy to point to?
  • Does the country have internationally known and recognized CPOs?

Obviously these questions are just a start. But sometimes, stepping back and looking at what contributes to general maturity and a climate of doing business in a particular category or area is more than enough to get a directional sense of the climate.

- Jason Busch

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