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Sourcing and Procurement

Trends in procurement – the year that was

Every year brings new challenges with it, and 2019 was no exception when we look at talent, digitalization, and risk management.

Talent

  • Talent boom

    - With digital technology on the rise, it is but obvious that procurement companies sourced and looked for talent who have the knowledge of the latest technologies. With the help of right talent, adoption and implementation of emerging technologies would be much easier. Given the dearth of talent in spaces such as Artificial Intelligence (AI), Robotic Process automation (RPA), building the talent base was one of the main highlights of 2019 and will continue in to the next year.
  • Nurturing talent

    - With AI highly adopted, there is a chunk of workforce that have been moved out of the system. Procurement companies are holding on to such talent and are heavily investing in these resources to learn about new technologies. This is turn will enhance the talent pool of a company

Digitalization

  • Digital technology plan

    - With the boom in digital landscape, all procurement companies needed to have a plan as to how they could go about making best use of the new technologies and whether it can be implemented effectively. Unfortunately, most were not error free. Although, companies have realized the importance of having such a strategy, as we can see more and more examples of such strategies in 2020. This will allow the sector to invest in the right technology and also help transition seamlessly from the older ways to newer ones. In addition to this, they can also plan well for the resources that will be required for this purpose.
  • The rise of AI

    - As we are aware, many companies have already adopted AI in their processes. Companies like EdgeVerve have not only launched, but are implementing a suite of procurement-centric business applications built on NIA, and are promoting this to our clients through Infosys Limited and Infosys BPM. AI has already replaced most of the ordinary tasks in the favour of automation.
  • Change management

    - All the changes in digital, coupled with risks, have led to an upward trend in change management. This has always been one of the barriers for procurement companies in achieving their goals. The new age technologies have automated transactional work in procurement. This allows the companies to position its resources more strategically to achieve critical business needs.

Risk

  • Owing to the rise of new age technologies, concerns have been raised in regards to the risks involved. Lack of cybersecurity still plagues a lot of procurement organizations. Several steps have been taken by the companies to ensure that not only is their information protected, but that of their suppliers is also secure. As a result, risk management has been a trend on the rise. In addition to cybersecurity, risks that are related to economy, such as economic downturn, Brexit, Trade war between US and China etc. have been a concern for many CPO’s. Simplifying and harmonizing the Internal procurement processes continued to be a focus area as well.