Elance extends services procurement strategy

Services procurement player Elance today launched SPM 4, the next version of its application suite for managing enterprise services spending.

The company is targeting what it believes are massive inefficiencies in corporate services spending. According to Aberdeen’s research director Christa Degnan, services expenditures — everything from facilities to IT consulting — average more than 30 percent of a company’s total spending. Yet few applications are specifically targeting the Services Procurement and Management (SPM) market.

The company reports its self-titled Elance SPM 4 suite is comprised of integrated application modules for services sourcing, master contract management, category process management, services procurement, engagement management, and analysis.

Diana Jovin, vice president of marketing and business development, enterprise solutions, claims the company can deliver hard cost savings on services spending between 10 and 20 percent due to the application’s ability to reduce invoicing errors, meet corporate compliance guidelines, and create opportunities for early payment discounts.

“It provides a method by which companies can systematically evaluate third-party vendors,” Jovin said.

The J2EE and XML-based suite is designed to integrate with existing ERP suites. The company reports its first Elance SPM 4 customers — Motorola and a number of GE divisions — have integrated it with Ariba, PeopleSoft, and Oracle e-procurement products.

Elance SPM 4 is available in either hosted or on-site versions. Jovin expects the majority of customers will prefer three-year term licenses, delivered on a hosted basis. That models costs between $3 million and $5 million per year based on spending levels.