IBM looking for smaller quick hit opportunities in procurement outsourcing
DATE: July 23rd, 2009
Corrystone Global Partners
A recent article (LINK) in Supply Demand Chain , talks about how IBM is planning to offer quick hit services to their clients in procurement space. IBM will provide specific spend category consulting to the clients. IBM using it’s global services arm provides complete turnkey BPO services to their clients and are now offering focused services too.
This is an interesting but obvious outcome of the current economic conditions in the marketplace. The market today is not seeing too many multi year transformational deals where the return on investment is a number of years away.
Accenture, IBM and similar firms which offer these transformational services have seen a dip in demand for this in the current environment. Some of these service offerings are quick hit, quick return for companies and though not long term recurring revenues for these firms but brings in revenues and get a foot in the door. This also put IBM in direct competition with the small boutique spending management, consulting firms which have provided these kind of niche services.
From a company perspective looking to analyse their spend, the cost of boutique consulting firms has never been cheap. IBM entering this space and other large consulting vendors open to smaller engagement , should make it more competitive for the companies looking for this type of service.
Mohit Sharma is the CEO of Corrystone Global Partners. Corrystone is an outsourcing consulting firm providing benchmarking, operational risk compliance, operational audit and transition management services to companies with operations in US and India. We work with firms which are exploring India or low cost US locations for IT, Business Process work and or have established IT/operations in India and US and are looking at ways to further optimize cost and manage operational risk.
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