After witnessing a vacillating adoption over a decade, the Procurement Outsourcing (PO) market is finally coming of age with steadily increasing adoption in the last few years. Years 2010-2011 were the best ever years for PO with 50 or more new contract signings in each year. The multi-process PO market has reached a critical mass of over 300 contracts and service providers are managing over US$190 billion for their clients.

The cost base for PO is fundamentally different and significantly larger than other BPO segments. Unlike other BPO segments, PO engagements impact the procurement spend, not just the operational costs. As a result, the potential bottom-line impact that PO can create is high. This large coast base makes the PO value proposition attractive but it also makes realization of value complex.

The objective of this research is to describe the top ten best practices in PO that will help current prospective PO buyers realize value from their PO engagements.

Contributors: Everest Group
Categories: SIG U Resource, Whitepaper
SRC Type: Outsourcing, Procurement Outsourcing / Transformation