Buyers don’t fear outsourcing rise

26 February 2010

26 February 2010 | Jake Kanter

Buyers do not fear that a rise in procurement outsourcing (PO) will lead to job losses in the profession, SM has found.

The latest SM100 poll showed 91 per cent of purchasers are confident they will remain in employment even if outsourcing increases this year. Only nine per cent did not share this optimism, expressing concern for their jobs.

PO experts have forecast an active year for the market. The Everest Research Institute  has suggested outsourced purchasing spend may rise as much as 25 per cent in 2010.

A handful of buyers were sceptical about these predictions, but the majority said they would not be affected even if PO deals did increase.
Many respondents said outsourcing spend categories enables buyers to focus on more strategic activities, including stakeholder engagement and supplier relationship management.

A number of purchasers said their roles would be protected by UK Transfer of Undertakings (Protection of Employment) Regulations (TUPE), which preserve an employee's contract when a business or undertaking is transferred to a new organisation.

More details will appear in the 4 March 2010 issue of Supply Management.

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