IBM adds Hubwoo’s e-sourcing toolset to outsourcing offering

Software as a Service (SaaS) e-business hub adds e-procurement to business process outsourcing.

IBM has selected Hubwoo’s SAP ‘source-to-pay’ solutions for integration with its procurement outsourcing offering. Hubwoo’s solutions spans spend analysis, e-sourcing, procurement and invoicing, content management and supplier connectivity. Hubwoo includes a hosted, ‘software as a service’ (SaaS) multi-client technology platform.

Mark Williams, Hubwoo CEO said, ‘We have already signed our first joint customer—the alliance builds on existing outsourcing agreements between SAP, IBM and ourselves. Our expertise in hosted source-to-pay technology now benefits from IBM’s overall outsourced procurement offering.’

Hubwoo’s trading hub annually processes 4,5 million transactions representing € 7 billion in customer spend value. For the first six months of 2008, the company reported revenues of €14.9 million (of which €11.4 million from SaaS) for a net loss of €5.3 million. Williams explained the ‘deep’ first half loss as ‘a consequence of our revenue transition on Trade Ranger customers, and restructuring costs.’ Looking forward, he expects organic growth to return the company to profitability ‘in short order.’ Two thirds of Hubwoo’s SaaS revenues come from its US operations. Hubwoo clients include Total, Shell, EcoPetrol, ConocoPhillips, ENI, Repsol YPF and Statoil.

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