According to recent research conducted by The Hackett Group, Inc. procurement executives have identified improving spend cost reduction as their primary focus for the upcoming year. As companies grapple with concerns over their ability to sustain revenue growth, high interest rates, fears of a potential recession, and the possibility of labor and skill shortages, reducing costs has emerged as a crucial priority.
The study highlights the active evaluation of generative Artificial Intelligence (Gen AI) by procurement leaders as a potential solution for enhancing business operations. The incorporation of Gen AI aims to uplift efficiency, optimize processes, and drive cost reductions within different functional areas of companies.
Additionally, The Hackett Group has released a new research report that explores the market for finance and accounting outsourcing (FAO) services. The analysis, known as the Hackett Value Matrix, profiles 15 leading FAO service providers, revealing a wealth of mature and well-established solutions that offer comparable levels of value realization and breadth of capabilities. As a result, the research suggests that companies seek guidance from expert advisors during the selection process to identify the service provider(s) best suited to their specific needs.
Furthermore, The Hackett Group has launched Ai XPLR, a groundbreaking readiness and opportunity assessment. Ai XPLR utilizes the extensive proprietary benchmark database of The Hackett Group to help companies rapidly identify opportunities for deploying artificial intelligence (AI) across key business services domains, including finance, procurement, human resources, and global business operations.
As companies strive to stay competitive in an uncertain economic climate, the prioritization of cost reduction and adoption of AI technologies underscore the efforts of procurement leaders to drive efficiency and maintain growth.
Overall, the research conducted by The Hackett Group sheds light on the shifting priorities and strategies within procurement, emphasizing the ongoing need for organizations to adapt and innovate in the face of economic challenges.
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