Aberdeen Group* has carried out a research study of the prospects of the European eSourcing and eProcurement market, following the announcement of the merger last June of SynerDeal and Trade2B.
The study starts by giving all the key information of the new company, SynerTrade: a team of 110 people mainly in France, Germany and Romania, a turnover of almost 10 million Euros in 2004 and balanced accounts, a proposal which benefits from SynerDeal’s purchasing expertise and Trade2B’s skills for integration of eSourcing solutions.
Studying the impact of the merger on eSourcing providers, Aberdeen underlines that, despite being smaller than the American competition, SynerTrade is an innovator by creating a new European transnational organization in a sector mostly dominated by national companies.
The study goes on to underline that this merger is in line with the general trends observed in the European market:
- Preeminence of the “on demand” model, as opposed to the traditional sales system of software installed on the client’s premises. Aberdeen notes that, according to another of the analyst’s research studies***, this model requires wide knowledge in Europe as 27% of companies are planning to come round to it in the next two years.
- At the same time the new organization responds to the desire of companies to interconnect their eSourcing system with their ERP, experience provided by Trade2B.
- It responds also to the growing concern of companies to source an economically viable provider offering guarantees of durability. SynerTrade, as a union of two profitable companies, should also benefit from large scale savings, particularly in terms of R&D through Trade2B’s development centre in Romania.
- Finally, Aberdeen insists that the industry will continue to consolidate but also that only those who follow the hybrid example set by SynerTrade, teamed with thorough knowledge of the software and purchasing expertise, will have an impact on the market.
Aberdeen concludes that the consolidation of European providers has only just begun and that SynerTrade is well placed to be involved in it.
*Aberdeen Group is America’s leading specialised research and consulting centre for technology and value chain-related issues.
**The Aberdeen research study referred to in this newsletter, written by Richard Waugh, Tim Minahan and Kevin Fitzgerald, is available at the following address: http://www.aberdeen.com/summary/report/market_alert/MA_SynerTrade_KFTM.asp
***The study ‘On Demand Supply Management: Filling the Gaps in Your Supply Management Infrastructure’ was carried out in March 2005 by Richard Waugh and is available by request from Aberdeen at the following address: http://www.aberdeen.com
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