Business Spend Management Software Market - Insights
Business spend management solutions provide access to structured workflows and a clear overview of procurement analytics which help to identify the best ways to secure cost savings. Business spend management solutions centralize all spend in one place, these capabilities enable increase spend visibility, accountability and facilitate cross-functional collaboration.
Additionally, business spend management enables the identification of risks through a detailed analysis of supply market trends, contracts, and supplier performance scorecards. This solution also provides automated supply-market related alerts and receive regular contract status updates, which further help to identify and limit risk.
Global business spend management software market is expected to exhibit growth rate of 11.2% during the forecast period (2019–2027). The market growth is majorly attributed to increasing adoption of business spend management software by small and medium organizations for managing the organizational expenses. Moreover, the rising usage of SaaS-based business spend management software is boosting the market growth.
Global business spend management software market is facing data security concerns in cloud-based deployment. Cloud-based deployment solutions store highly sensitive data related to the organization’s financial details, supplier or contractor details, and customer's information. In the case of security breach this would cause a huge loss to the organization.
Figure 1. Global Business Spend Management Software Market Share (%), by Region (2027)
Source: Coherent Market Insights, 2018-19
In 2018, North America was the dominant region in the business spend management software market, and it is expected to retain its dominance over the forecast period owing to presence of developed economies such as U.S. and Canada. Spend management software providers in the region are investing heavily in research and development activities, in order to enhance their software capabilities. For instance, in May 2018, Coupa Software Inc. launched a new product for business spend management. This new launch will increase the company’s visibility in terms of organizational spending, operational processes, and performance.
Additionally, the presence of large manufacturers such as Apple Inc, Dell, and service providers such as Amazon.com Inc., and Netflix are expected to boost demand for business spend management software in the region over the forecast period.
Figure 2. Global Business Spend Management Software Market Share (%), By Solution (2027)
Source: Coherent Market Insights, 2018-19
On the basis of solution, the procure-to-pay solutions segment holds the largest market share in the business spend management software market, and is expected to retain its dominance over the forecast period owing to increasing adoption for efficiently managing end-to-end business spending, for sourcing and requisitions to payments and invoicing. Moreover, this solution will provide full synchronization between accounting and procurement departments, which enable them to maintain transparency across strategic financial planning. These processes help them to manage a large amount of business spend datasets by eliminating off-contract and maverick buying.
These solutions can be integrated with multiple enterprise resource planning tools (ERP), which help enterprises to manage their suppliers, employees, and all other business needs through a single platform. Cloud-based procure-to-pay solutions are efficient, seamless, easy-to-use, and require minimal training.
Based on deployment type, SaaS segment is expected to exhibit the highest growth rate of 11.7% over the forecast period, as it requires lower cost and less time for installation compared to on premise deployment option. Furthermore, organizations operating in various industries are adopting the SaaS-based deployment option, as this deployment option decreases the risk associated with cash flow oversight, increased productivity & efficiency, and provides improved reporting and analytic capabilities. For instance, according to Coherent Market Insights analysis, in the year 2017, SaaS-based services generated revenue of US$ 59.35 Billion and is expected to increase to US$ 114.6 Billion, which shows a lucrative opportunity for business spend management market.
Some of the major players operating in the global Business Spend Management Software market include Advanced, Ariba, Inc. (SAP SE), Coupa Software Inc, GEP, Procurify, Sage Intacct, Inc. (The Sage Group PLC), Sievo, SutiSoft, Inc., TOUCHSTONE GROUP PLC, VA Tech Ventures Pvt Limited (Happay), and others.
Effective spend management means managing the end-to-end procurement process, managing the supply chain, managing the contracts & tenders, and managing the invoice effectively. It means identifying organizational spend that must be brought under management, and building a strategic savings plan, and actively taking control of that spend to drive realized savings.
Growth of the global business spend management software market is attributed to the rising adoption of business spend management software across various End-use industries such as BFSI, automobile, retail, for managing expenses through a single platform. Moreover, organizations across the globe are adopting the SaaS-based deployment solutions as it provides faster deployment and agility compared to on- premise deployment. Moreover, business spend management software provider companies are offering cloud-based solutions that can be integrated with the company’s existing business management platforms, thereby eliminating hardware, software, and internal IT requirements which is expected to boost demand for business spend management solutions. For instance, Coupa’s cloud-based business spend management solutions can be integrated with multiple enterprise resource planning (ERP) solutions such as SAP ERP and Oracle ERP.
However, data security concerns in cloud-based software are some of the major challenges that are expected to hamper the demand for business spend management software. Cloud-based business spend solutions store highly sensitive data related to procurement, contracts, tenders, supply chain, and other business expenses on servers. If data belonging to multiple companies is hacked, the information of companies can be leaked throughout the server and can negatively impact companies’ reputation.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.
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