IDC: Many IT Users Are Using or Willing to Adopt eProcurement Applications but for Different Reasons and Priorities
FRAMINGHAM, MA – JUNE 12, 2001 – Although IT users agree about the importance of eprocurement applications, the degrees to which they evaluate, plan, and deploy these products differ significantly. According to IDC, great variances in IT user requirements for eprocurement applications could pose serious challenges for any vendor looking to gain critical mass in this market in a short amount of time.
"Without question, interest in eprocurement applications in the user community is strong and robust," said Albert Pang, manager of IDC’s eCommerce Software research. "However, IT users are taking a different view of how these products will help them generate substantial savings in the long run and achieve operational efficiencies."
Although many respondents to IDC’s recent eProcurement Applications User Survey prefer to develop their own procurement strategies, more than half are willing to either access eprocurement applications from a service provider or purchase packages from software vendors. The survey also revealed indirect materials purchases will continue to dominate the agenda for companies using eprocurement applications in the next 12 months — although travel and HR services, followed by direct materials, are also high on the purchase list.
Survey respondents said transaction security, customization capabilities, and little up-front IT investments are the top reasons they outsource their online procurement functions. Customization capabilities, implementation time, and integration into legacy applications are the vendor attributes with which they are least satisfied.
IDC believes the key for eprocurement applications vendors to increase customer satisfaction is to help users harness these applications throughout their organizations so that they touch a greater percentage of their procurement spending. According to the survey, more than 70% of the respondents already using eprocurement applications said these applications will be handling only 10% or less of their overall procurement budget over the next 12 months. "eProcurement is not a novel concept anymore. To gain share, eprocurement applications vendors must go the extra mile to satisfy their customers," Pang said.
In September 2000, IDC conducted an Internet-based survey in which 68 selected participants were directed to a Web site and asked to answer questions about eprocurement and emarketplace technologies and implementations. The results of this survey can be found in IDC’s bulletin, Results of the 2000 eProcurement Applications User Survey (IDC #B24276). To purchase it, contact Cheryl Toffel at 1-800-343-4952, extension 4389, or at email@example.com.
IDC delivers dependable, high-impact insights and advice on the future of ebusiness, the Internet, and technology to help organizations make sound business decisions. IDC forecasts worldwide markets and trends and analyzes business strategies, technologies, and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC provides global research with local content through more than 700 analysts in 43 countries worldwide. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at http://www.idc.com.
IDC is a division of IDG, the world's leading IT media, research and exposition company.
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