Procurement outsourcing has become a definitive agenda item for CXOs as companies strive to achieve ‘capability optimization’, where procurement service costs are lower and value delivered higher, and more spend is under strategic management. ‘Best in Class’ (BIC) procurement is no longer simply about achieving a low-cost, high-value delivery model, focusing on process efficiency across a percentage of spend. Capability optimization means expanding existing capability across all third party spend by increasing the usage of offshore resources; leveraging category, technology and operations expertise and sourcing Centers of Excellence (COEs) from specialty firms; using fit-for-purpose processes, and an operating model that is both scalable and has lower fixed costs.

Contributors: Infosys, Verizon
Categories: Summit Presentations
SRC Type: Outsourcing, Procurement Outsourcing / Transformation