According to the latest ISG Provider Lens™ Procurement Services 2025 report, enterprises are embedding procurement more deeply into their business models, enabled by advanced technologies and new service approaches. The study evaluates 28 providers across three key service areas, offering insight into how organizations are modernizing sourcing, operations, and supplier management.
A Shift Toward Speed and Strategic Value
Procurement is evolving from a cost-control function into a critical lever for competitive advantage. According to ISG’s latest findings, companies are using procurement to accelerate time to market, strengthen risk management, and improve process agility, all within a more volatile global supply environment. This rapid shift is underpinned by technology. Investments in AI, generative AI, robotic process automation, and advanced analytics are reshaping how decisions are made. These tools support more predictive sourcing and allow teams to collaborate with suppliers in real time, rather than respond reactively to disruptions.
“Enterprises recognize the need to make their procurement processes more efficient, transparent and resilient,” said Robert Stapleton, Partner and Lead for Business Process Outsourcing at ISG in a statement.
The report also highlights the rise of dedicated procurement centers of excellence (CoEs), which are tailoring solutions based on enterprise needs, ranging from spend visibility to supplier performance tracking. Within the next 24 months, ISG expects adoption of these technologies to accelerate, with a focus on improving the user experience and deepening supplier integration.
Outsourcing and ESG Redefine the Operating Model
As per the report, outsourcing continues to play a central role. Organizations are turning to service providers not just for transactional support but for higher-value capabilities such as procurement technology governance, strategic sourcing, and supplier risk management. This signals a growing maturity in how enterprises approach third-party partnerships.
Meanwhile, the sustainability agenda is no longer adjacent to procurement, it’s embedded within it. Circular economy models, low-impact sourcing, and waste reduction are becoming core criteria in supplier selection. With environmental and social expectations mounting, procurement has become a primary driver of ESG progress.
ISG also stresses the growing importance of cybersecurity and workforce capabilities. As procurement tools become more connected and cloud-based, securing sensitive data and ensuring compliance are now strategic imperatives. At the same time, there’s increased demand for professionals who can work across digital platforms and supplier ecosystems with equal fluency.
“Procurement has the potential to transform supply chain management,” said Jan Erik Aase, Partner and Global Leader at ISG Provider Lens Research. “Enterprises seek services and technology expertise to maximize the value of procurement systems, and providers are stepping up.”
Procurement Matures Into a Strategic Integrator
The 2025 ISG report underscores a quiet but fundamental shift in how enterprises view procurement—not as a cost center, but as an integrator of speed, resilience, and strategic foresight. As supply chains absorb more external pressures, procurement is stepping into a role that connects operational efficiency with broader business outcomes, from sustainability to supplier risk governance.
What’s particularly noteworthy is the alignment between technology adoption and structural changes in procurement—such as the rise of centers of excellence and managed services partnerships. These developments suggest that the function is no longer simply reacting to market shifts but is being architected for long-term adaptability.
