Global outsourcing of procurement expected to grow in 2012

16 December 2011
More international articles

Want the latest procurement and supply chain news delivered straight to your inbox? Sign up for the Supply Management Daily

16 December 2011 | Angeline Albert

Procurement outsourcing deals will grow by 20 per cent in 2012 and expand to other areas of the supply chain such as order fulfilment, inventory management and logistics.

This is according to analysts at research firm Everest Group. Writing in its 2012 Market Predictions report, the company said buyers will expand deals across the supply chain against a backdrop of acquisitions among procurement service providers.

The research said contract sizes will also rise, with chief financial officers increasingly driving discussions on procurement outsourcing. This will lead to more outsourcing deals that bundle finance and accounting together with purchasing.  

Everest said buyers will take an end-to-end approach concentrating on source-to-contract (S2C) and procure-to-pay (P2P) processes. More acquisitions and partnerships between P2P-focused providers and S2C providers are expected in 2012 to provide complete solutions.

More direct spend categories, such as maintenance and repair, are expected to become part of procurement outsourcing deals.

Everest said the government sector around the world would see more activity in 2012, with the report singling out the UK in line with its current work on procurement optimisation.   

The report said that while the procurement market is dominated by Accenture, ICG Commerce and IBM, there is strong competition on the next rung of big contenders because they are experiencing rapid growth.

LATEST
JOBS
Hounslow, Heathrow /Richmond upon Thames
Competitive salary depending on experience plus generous share award
Tails.com
London
GBP40000 - GBP50000 per annum + Excellent Benefits Package
Bramwith Consulting
SEARCH JOBS
CIPS Knowledge
Find out more with CIPS Knowledge:
  • best practice insights
  • guidance
  • tools and templates
GO TO CIPS KNOWLEDGE