KPMG Sourcing Trend Radar 2024

Facing an increasingly complex and rapidly changing global landscape, organizations must continuously adapt their sourcing strategies. In the KPMG Sourcing Trend Radar 2024, we offer our perspective on the sourcing marketplace, compiled from our hands-on fieldwork experience and insights gained from clients and service providers worldwide. This publication reflects on key trends from both a Digital (IT) and Business Process sourcing perspective.

Our goal is to empower leaders to navigate sourcing challenges with confidence. Whether you are interested in the rise of ESG-incorporated sourcing, how geopolitics can affect your sourcing model or how AI is reshaping business processes and service delivery, the KPMG Sourcing Trend Radar 2024 is a clear compass, guiding on future sourcing trends. We trust that the insights presented can support your organizational endeavors and invite you to delve deeper into these trends with the assistance of our sourcing experts.

The KPMG Sourcing Trend Radar 2024 presents our Shared Services and Outsourcing Advisory view on the sourcing marketplace. We have compiled this Trend Radar from first-hand field experience working with clients and service providers around the globe. It reflects the combination of our views and their insights. The trends are addressed from a Digital (IT) and Business Process sourcing perspective.

Over the last year, we have witnessed several prominent trends shaping the industry. Geopolitical-resilient sourcing models are gaining significance as geopolitical factors increasingly impact sourcing operations. Governments in near-shore and off-shore destinations try to enhance their competitiveness in terms of, for example, knowledge levels and quality. At the same time, regional political stability can disrupt business continuity, necessitating sourcing resilience.

Secondly, there is a growing emphasis on incorporating Environmental, Social, and Governance (ESG) principles into sourcing strategies. The impending implementation of the Corporate Sustainability Reporting Directive (CSRD) in 2024 will mandate ESG reporting, significantly impacting sourcing arrangements and requiring the full integration of the ESG mindset into sourcing strategies and models.

Lastly, the demand for sustainable and resilient ‘partner ecosystems’ is expanding. Businesses are exploring to improve their digital value chains through ecosystem partners, providing more innovative integrated digital solutions and services. These partnerships are crucial in addressing the growing sustainability and resilience demands while navigating complex inter-dependencies between ecosystem partners and prioritizing shared goals. Such demands are also founded in the domain of compliancy with, for instance, the Digital Operations Resilience Act (DORA) or the Network and Information Security (NIS2) directives. This makes ecosystem-based partnerships a growing topic of interest to achieve Environmental, Social, Compliancy, and Governance objectives while safeguarding business continuity.

In conclusion, we trust that our insights and perspectives in this year's Trend Radar will empower leaders to navigate sourcing challenges with confidence. Should you wish to delve deeper into these trends or explore how KPMG can assist your organization, please do not hesitate to reach out to any of our local Sourcing experts listed in this publication. We look forward to supporting you in your journey to successfully navigate the evolving sourcing landscape.