Outsourced purchasing trend grows

4 January 2001
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04 January 2001

Around 60 per cent of businesses would consider outsourcing purchasing for non-core indirect areas, according to a survey.

There is a trend towards more outsourcing as companies search for savings and increased efficiencies in purchasing, said Alf Noto, chief operating officer at hosted e-procurement business solutions provider Tomorrow First, which commissioned the survey. "Target areas include everything from stationery to catering and travel," he said.

Outsourcing services such as catering is not new, but there is a move towards outsourcing the purchasers that would seek the contract itself. "This outsourced function would have the internal dialogue with stakeholders within the company," added Noto.

Difficulties in hiring purchasers with core skills is making companies put more effort into this recruitment process, he said. Companies then seek outsourced professionals for non-core activities where learning about the market takes a long time, but this knowledge is used less frequently and strategically than for core activities.

The survey was based on interviews in October with 50 directors and senior managers involved in purchasing for the largest organisations in the UK, with turnovers of more than £200 million and across 13 industrial sectors.

• Copies of the survey are available from Tomorrow First on 01252 323735

SMjan2001

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