2013 Predictions: The ePurchasing Software Market Will Grow 5%

CIOs should take an interest in the market for ePurchasing software (software to support buying, sourcing, contracting, and vendor management activities) for two reasons: 1) to find technology tools that support the IT department's purchases of IT goods and services; and 2) to provide technology tools to their business partners for their purchases of all kinds of goods and services. Understanding the dynamics of this software category — characterized by above-average growth, new entrants, and acquisitions — is critical to finding the right vendor(s) to meet both needs. Our 2013 predictions lay out the prospects for growth and acquisitions in each of the eight product categories, while our review of our 2012 predictions grades our forecasting track record. We expect 5% growth in the overall category and even better growth in software-as-a-service (SaaS) and analytical applications like spend analysis, contract life-cycle management, services procurement, and supplier network services. The pace of acquisitions should match that of 2012, with Basware, IBM, and Oracle the most likely acquirers.