Why do big consultancies partner with legacy S2P suites?

21-08-2024 • 14 mins

This episode of The Procurement Software Podcast delves into why big consultancies often partner with legacy source-to-pay suites. Host James Meads explains how their corporate mindset and focus on large organisations can limit their understanding of the broader digital procurement market. Also, how conflicts of interest can result in big consultancies shilling legacy software. Tune in to explore how to avoid falling for the trap of thinking the big consultancy is your friend when it comes to advisory on procurement software choices.

Why do big consultancies partner with legacy tech?

This week, we delve into how a narrow focus on large corporate solutions drive big consultancies to favour established software players, often at the expense of more suitable options for small and mid-sized businesses. Financial incentives are also a key factor, with consultancies earning commissions on software sales and profiting from the complex, time-consuming implementation processes. These practices, however, raise significant ethical concerns. The episode sheds light on the conflicts of interest that arise when consultancies receive commissions, while simultaneously billing clients for their services. We contrast this with Procurementsoftware.site's commitment to providing impartial, client-focused advice, free from any conflict of interest from software providers. Tune in to gain insights into how these dynamics shape the procurement technology landscape and why choosing an unbiased advisor is essential for making the best decisions for your organisation.

Timestamps:

[00:00:38] - Why Big Consultancies Partner with Legacy Source-to-Pay Suites [00:01:21] - Corporate Mentality and Market Knowledge [00:02:44] - Influence of Research Houses [00:04:00] - Affiliate and Partner Commissions [00:05:04] - Implementation and Business Model of Big Consultancies [00:06:39] - Complexity and Configuration of Legacy Software [00:08:04] - Profit Margins in Implementation Projects [00:09:08] - Ongoing Consultancy Needs and Customisation [00:10:13] - Lack of Innovation and Market Knowledge [00:11:06] - Best of Breed Solutions vs. Legacy Suites [00:11:49] - Impartial Advice and Conflict of Interest And that wraps up another episode of The Procurement Software Podcast! Thanks again for listening, and do please leave us a review on Apple Podcasts or rate us on Spotify. Every one helps! We'll be back at the same time next week, so see you there. If you want to learn more about Procurement Software, check out the useful links below.