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Global Procurement Outsourcing Posts 17% Growth

by: Sarah Joson

Monday, May 21, 2012 | Outsourcing News |

Global research and advisory firm Everest Group’s Procurement Outsourcing (PO) Annual Report 2012 - The PO Market: Steadily Marching Forward shows that the total value of PO contracts had increased 17 percent for the last two years, reaching $11 billion (£7 billion). This can be due to the growth of the average contract value and continued use of the process by companies that post revenues from $1 to $5 billion (£600 million-£3.2 billion)

Procurement outsourcing market posts remarkable figures

According to Everest Group Vice-president Saurabh Gupta, the procurement outsourcing market posted remarkable figures for new deals, renewed contracts, and re-adoption rate for the mid-sized market.

Moreover, 80 percent of the total value of deals awarded in 2011 are from manufacturing, consumer packaged goods, and retail companies. Meanwhile, the finance and accounting sector was seen to gradually outsource accounts payable processes.

Everest also predicts that 2013 may be the third consecutive year of growth for PO as the total value of contracts is expected to reach $1.8 billion (£1.1 billion), a $200 million (£126 million) increase with small firms leading the growth.

Moreover, the report indicated that companies from the Asia-Pacific and South American regions will have an increase in procurement outsourcing activities.


Source:
https://www.cips.org/supply-management/

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