Many enterprises understand the benefits of eInvoicing, but risks and concerns over data sharing and data security are affecting adoption rates. Subsequently, many are turning to third-party vendors, which have begun to offer their solutions through cloud-based models, according to a new report.
The report, available from Research and Markets, predicts the global e-Invoicing market will grow at a compound annual growth rate of 23.3 percent through 2018.
Also known as eBilling, eInvoicing involves the exchange of bills and related invoices between organizations and their clients in an integrated electronic format, usually online. The electronic data interchange transactions include enterprise data formatted to integrate into the client’s financial system without the need of a financial administrator.
The need to automate the invoicing process and reduce operational costs in organizations is one of the major drivers behind the anticipate growth in e-Invoicing, notes the report “Global E-Invoicing 2014-2018.” Einvoicing enables organizations to automate invoice generation and enhance the overall business process. It also reduces the total operational cost and time spent on the purchasing process, according to the report.
“The emergence of cloud-based solutions has enabled organizations to increase their efficiency and reduce the cost of setting up valuable IT infrastructure,” an undisclosed analyst from the team that did the research said in the report summary. “The cloud-based model for eInvoicing offers a pay-per-use model, which provides cost-effective access to e-invoicing solutions to multiple users without any time and location constraints.
Moreover, the complexity involved in the electronic purchasing process is one of the major challenges. It involves creating and maintaining product data electronically, and enabling suppliers to support electronic transactions increases this complexity, according to the report. Generally, there is a limitation in the ability of einvoicing to address various types and ranges of purchasing activities, it notes.
The study was conducted using an objective combination of primary and secondary information, including input from key participants in the industry.
The report covers North America, Europe, and the APAC region.