Outsourcing set to grow despite problem areas

24 August 2005
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25 August 2005

A third of procurement directors expect to outsource part of their function within the next two years, a survey of 200 European firms has found.

Travel buying, IT and office supplies, were the three areas most likely to be outsourced, the research found.

Paul Hampton, director of product marketing at procurement consultancy Ariba, which carried out the survey, said: "More people are starting to think about what they can outsource. Travel tends to be a big spend item, so there is potential for savings to be made."

However, Ariba's survey also found that 51 per cent believed outsourcing would create more problems than it would solve.

Meanwhile a survey by the National Outsourcing Association and UK testing consultancy IS Integration found that 62 per cent of outsourcing professionals think firms don't invest enough in assessing how well outsourcing will work, or in testing its efficiency once implemented.

SMaug2005

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