Blockchain Procurement Intelligence Report, 2024 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Every organization and its procurement team look forward to negotiating the best deal while procuring a set of products or subscribing to services. Rate benchmarking involves price/cost comparison of more than one set of products/services to analyze the most efficient combination that can potentially help the procurement team in getting the optimum rate.

The geographical location and nature of the business play a vital factor in analyzing the rate benchmarking of blockchain category. For example, blockchain services in the U.S. are typically more expensive than services in India. For instance, in U.S the average hourly rate of a software developer is the highest ranging from USD 45 to 70, as compared to India which is around USD 20 to 40. This is due to a number of factors, including the availability of skilled labor, and the regulatory environment. The cost of blockchain services varies depending on the scale of the project. For example, a small business that is simply looking to implement a blockchain-based solution will likely pay less than a large enterprise that is looking to build a complex blockchain-based platform. Prices also depend on complexity of the blockchain application. For instance, a simple application may cost between USD 40,000 - 60,000 whereas a highly complex application may cost from USD 155,000 to 300,000.

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Labor cost is one of the key components of the total incurred costs while offering a product or service. Therefore, an organization must decide on whether the focus category should be retained in-house or outsourced if the organization is providing its products or services at competitive prices. If the organization decides in favor of outsourcing, it must understand the difference in the salary structures of suppliers before selecting a supplier and formulating a negotiation strategy.

According to our research, blockchain developers at Springcoin Inc., ConsenSys, and IBM receive a 10% - 15% higher base salary compared to the salary received by developers working in companies such as ELEKS Software and Blockstream Corporation Inc. However, the year-on-year increment rate in all these companies majorly depends on the Key Result Areas (KRAs).

Organizations may find it cumbersome to continuously track all the latest developments in their supplier landscape. Outsourcing the activities related to gathering intelligence allows organizations to focus on their core offerings. At this juncture, our newsletter service can help organizations stay updated with the latest developments and innovations and subsequently assist in preventing disruptions in the supply chain. We have identified the following developments within the blockchain category over the last two years:

In June 2023, EU’s EBSI Vector project announced collaboration with Protokol, a blockchain service provider for professional and educational credential verification. This project will simplify the recognition of EU citizens in different countries.

In June 2023, Fujitsu announced the launch of its proprietary blockchain technology, ConnectChain, in collaboration with Asian Development Bank, ConsenSys Software Inc., R3, and SORAMITSU, LTD for facilitating and enhancing cross-border transaction safety of financial securities. By incorporating "ConnectionChain," the trials accomplished the establishment of a system capable of securely linking multiple blockchains to facilitate transactions across various economic regions. The primary objective of these trials was to enhance cross-border securities settlement within countries such as Japan, China, and South Korea.

In June 2023, KOMARKCORP BERHAD announced a partnership with Ant Group Digital Technologies to tap into digital blockchain services. The partnership combines Komark's expertise in printing and labeling with AntChain's blockchain-based traceability technology. This collaboration aims to explore new markets and meet the increasing consumer demand for traceability, particularly in safety-sensitive industries like food and beverage, as well as the medical sector.

In June 2023, J.P. Morgan partnered with six major Indian banks to use blockchain technology to settle interbank U.S. dollar transactions. The participant banks include ICICI Bank, HDFC Bank, Yes Bank, Axis Bank, and J.P. Morgan’s banking unit at Gujarat International Finance Tec-City. The blockchain pilot will remove barriers such as the non-availability of settlement on Saturdays, Sundays, or public holidays.

In February 2022, 5ire, a blockchain network of the fifth generation, obtained a USD 100 million capital commitment from GEM Global Yield LLC SCS (GGY), as part of its intention to pursue an initial public offering (IPO).