Originally appeared in Executive Biz

An Information Services Group report has found that the U.S. public sector is advancing efforts to enhance procurement systems amid challenges escalated by the COVID-19 pandemic.

ISG said Friday the report showed an increase in spending among public sector organizations on business process outsourcing, procurement software and transformation in 2022 as such entities pursue cost reductions and improvement in operations.

“Many agencies are seeking software platforms to standardize and improve their procurement systems and BPO services to improve efficiency and make costs more predictable,” said Nathan Frey, partner, ISG Public Sector.

“After these initial steps, more agencies are likely to embrace full-fledged digital transformation of procurement, probably around 2025,” he added.

Frey noted that the pandemic-related disruption and increasing cybersecurity threats have resulted in an increase in the demand for digital capabilities.

The report also assessed 27 companies across the quadrants of BPO services, software platforms and digital transformation services and found that GEP emerged as a leader across the three quadrants.

Companies that dominated two quadrants were Accenture, IBM and Infosys, while Oracle, SAP Ariba, Corcentric, Coupa, JAGGAER, Ivalua were named leaders in one quadrant.

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