It seems likely that Workday will also be eager to apply its machine learning capabilities to more of the source-to-pay process. ScoutRFP opens up more of the extremely fast growing S2P space to Workday (which some value at $50 billion as a total addressable market), and Workday benefits from a product known more for its usability and adoption than just about any other sourcing platform on the global market. Workday says it does not intend to re-platform Scout RFP but will converge the data model, security model and user experience with its own products over time.Īccording to Michael Lamoureux, lead analyst in sourcing technology at independent sourcing specialist website Spend Matters, the acquisition is set to boost Workday's appeal in the rapidly expanding source-to-pay (S2P) market: Workday Procurement has itself been growing fast, with more than 650 customers signed up, over half of whom are live. The product already offers close integration with Workday's existing procurement solution. It has over 240 customers globally and claims to manage more than $38.5 billion in project spend.
Founded five years ago, the San Francisco-based SaaS company has grown fast thanks to the engaging user experience of its automated sourcing and auction platform. Boosting Workday's source-to-pay appealĪs its name suggests, Scout RFP aims to streamline the process of sourcing suppliers, traditionally initiated by issuing a 'request for proposal' (RFP). Through Workday Ventures, it has been an investor in the company since late 2018.
It expects to complete the deal before the close of its current financial year at the end of January. Workday has agreed to pay $540 million in an all-cash transaction to acquire Scout RFP. It plants Workday on the same turf as Coupa - whose CEO told diginomica today he welcomes the move - as well as broadening its competitive front against ERP giants SAP and Oracle. Is spend management an add-on to finance or a separate category? Workday is putting that question to the test with its acquisition of up-and-coming source-to-pay vendor Scout RFP, announced this week.
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