15 November 2007 | Paul Snell
India-based outsourcing firm Genpact has been named the best procurement outsourcing provider.
According to the 2007 Black Book of Outsourcing
study, by consultancy Brown-Wilson Group, the firm scored the highest marks in 13 of the 18 categories in which it was evaluated, including innovation, support and reliability. ICG Commerce, Ariba, IBM and Capgemini made up the top five.
Scott Wilson, co-author of the report, told SM
that Genpact's performance was not unexpected. "It is not really a surprise. Since the company went public there has been a number of internal changes that have been positive and made it able to focus better on the things it does well."
While there has been an increase in the number of outsourcing providers with more than 10 clients, making them eligible for the survey, the number able to provide a full procurement service remains low.
"Between 60 and 65 per cent of firms could not deliver an end-to-end service and this will continue," said Doug Brown, the report's other author. "Companies who specialise are driving business development."
Wilson added those who specialise in specific areas of procurement often had higher profit margins than generalists.
The survey also rated firms on sustainable procurement initiatives for the first time, although the score will not contribute to the ranking until next year. Accenture was rated highest, followed by Genpact and Capgemini.
The study, which interviewed 3,500 procurement, supply chain and finance professionals worldwide, also found 95 per cent of firms want to use procurement outsourcing to improve their sourcing strategy. A straw poll at last week's Procurecon event in Brussels revealed nearly one-fifth of buyers think it is their role to outsource procurement.