Abstract
Introduction
Procurement outsourcing is the smallest of the horizontal business process
outsourcing (BPO) functions, but many industry experts believe 2009 will mark
the start of a significant period of expansion in the market. This report
analyzes the evidence used to support these claims and attempts to separate
the hype from the reality.
Scope of this research
- This report looks at the prospects for future growth in the procurement
outsourcing market.
- It defines the procurement outsourcing market, with particular focus on
key functions such as sourcing, purchasing and payments.
- The report provides in-depth analysis of the market' s competitive
landscape, from global outsourcing giants to specialist providers.
- It also offers recommendations to vendors looking to take advantage of the
growth potential of procurement outsourcing.
Research and analysis highlights
At various points over the last 10 years, BPO industry experts have predicted
an explosion of procurement outsourcing activity, but the expected boom has
yet to happen. That has not deterred market-watchers from forecasting that
2009 will be the beginning of a period of rapid expansion in the procurement
outsourcing market.
Procurement outsourcing does not rely on labor arbitrage to deliver cost
savings. As procurement is not a labor-intensive process, vendors have to use
other methods to deliver savings, including improving both internal processes
and the management of supplier relationships and innovating around technology
and processes.
The procurement outsourcing market has a unique competitive landscape. It is
dominated by four market-leading vendors, including two outsourcing giants
(IBM and Accenture) and two procurement specialists (ICG Commerce and Ariba).
Key reasons to purchase this research
- Provides a detailed analysis of the current state of the procurement
outsourcing market.
- Gives a detailed overview of the market' s unique competitive landscape.
- Offers recommendations to vendors looking to grow their presence in the
procurement outsourcing market.
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