Last month, I caught a short article in Supply Management (UK) which mentioned the growth of the sourcing software market as reported by AMR Research. It highlights that buyers are expanding usage of sourcing technologies due to more comprehensive and broad functionality. Growth is expected to grow rapidly over the next few years, as well.
This seems somewhat redundant because by my less precise methods, I could easily summarize that this growth has been rapid for a number of years. I would more prefer to call it “continued and sustained” rapid growth over “expected” future tense. Regardless of semantics, they quote a few interesting research points.
The study estimates the market for procurement technology will grow by $1.2 billion (£582 million) over the next four years. It was worth $2.4 billion (£1.16 billion) in 2006 and is expected to reach $3.6 billion (£1.74 billion) by 2011. Europe provided the biggest growth in revenue last year, up from $200 million (£97 million) in 2005 to $244 million (£118 million) in 2006.
These are more reasonable and attainable growth numbers than were predicted in the halcyon days of the late 90s (wasn’t this supposed to be a trillion dollar market?). I can say for certain, that I am surprised virtually every single week to discover that massive global companies have no eSourcing tools in place when they call us. There is a lot of positive momentum now which helps reduce the learning curve on the benefits.