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Global Companies Still Using Outdated Buying Processes, According to New Industry Report

by jcp

Study from Sourcing Industry Group and Globality, the world’s only AI-powered marketplace for B2B services, reveals nearly 95% of enterprises still have to modernise their operating models

PALO ALTO, CA — January 27, 2022 — Just 6% of leading companies have fully embraced digital transformation in the way they buy and sell services in the £3.9 billion global market, a new survey released today has revealed.

The study, organised by the respected Sourcing Industry Group (SIG), in association with Globality, the company transforming the way global enterprises source services with its leading AI-powered digital solution, found that 94% are in early- to mid-stages of their transformation, meaning the vast majority have considerable work to do.

Further, only 15% of organisations surveyed believe that they are either “best in class”
or “industry leaders when it comes to digital transformation of their procurement processes and operating models, and 50% of global procurement leaders admit their companies are ‘laggards’ when it comes to the digital transformation of their B2B sourcing processes and operating models.

“Organizations who take proactive measures to transform their current procurement processes and operating models will enjoy considerable competitive advantage in a rapidly changing market, both now and well into the future,” said Dawn Tiura, SIG Chief Executive Officer.

The survey questioned more than 120 global procurement leaders with 84 percent of respondents in positions at a director level or above. The industries represented ranged from arts and entertainment to manufacturing, finance and insurance. More than half of the respondents were responsible for procurement spend in North America, and more than 40 percent were accountable for global spending.

Globality’s Platform and marketplace is used by leading global companies, including British Telecom, Santander, HSBC, GEA, and Dropbox, to transform the sourcing of high-value services by automating demand creation, supplier identification, proposal evaluation, and the statement of work creation process through an intuitive self-service experience.

“The average Global 2000 company spends over £3.9 billion a year on services and all of it can be spent smarter and better,” said Keith Hausmann, Globality Chief Revenue Officer. “These findings highlight the need for companies to utilise the sophisticated, AI-powered technology that now exists to enable fair, competitive, sustainable self-serve sourcing.”

“Through digital transformation, procurement can create far more impact on a company’s profitability, as well as helping to enable its ESG agenda,” he added.

About Globality

Globality is a Silicon Valley-headquartered technology company co-founded by Joel Hyatt and Lior Delgo to revolutionize how companies buy and sell services. Through its AI-powered Platform and marketplace, Globality is bringing digital transformation to the sourcing industry. Globality’s AI digital solution replaces the archaic analog Request for Proposal, efficiently and effectively scoping needs, managing demand, matching companies with outstanding suppliers that meet their specific service needs and cutting the sourcing process from months to hours while delivering savings of 20% or more. In January 2021, Globality raised $138 million from Sienna Capital and the SoftBank Vision Fund, bringing the total investment it has raised since its founding six years ago to $310 million. For more information, visit www.globality.com.

About Sourcing Industry Group

Sourcing Industry Group (SIG) is the premier global association for sourcing, procurement and risk professionals. Founded in 1991, SIG provides thought leadership, networking and training opportunities to executives in sourcing, procurement, and outsourcing from Fortune 500 and Global 1000 companies. It has served these professionals and opened dialogues with their counterparts in finance, HR, risk and other business functions throughout its history. The organization is unique in that it blends practitioners, service providers and advisory firms in a non-commercial environment. With a 75:25 ratio of buy-side to sell-side, and over 68% of delegates holding decision-making titles, SIG events are collegial, memorable and senior-level.

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