Global outsourced procurement increases for second straight year

Source: Supply Management - 20/05/2012

The amount and value of global outsourced procurement deals have increased for the second year straight, according to the latest report by Everest Group.

The cumulative value of contracts increased by 17% to reach $11billion, which the Procurement Outsourcing Annual Report 2012 – The PO Market: Steadily Marching Forward attributed to an increase in the average contract value and continued adoption by mid-size companies.

The study found that companies in the manufacturing, consumer packaged goods and retail, and financial services accounted for around 80% of the total value of deals signed in 2011, with an increasing trend in finance and accounting outsourcing with accounts payable being outsourced also identified.

“For the second consecutive year, we’ve seen the procurement outsourcing (PO) market set record numbers for new deals, renewed contracts, and a significant rebound in mid-market adoption,” Saurabh Gupta, vice president, Everest Group says.

The study also forecast growth in the amount of procurement being outsourced from the public sector and that the geographical spread of outsourcing will grow.

It predicted that more companies in the Asia-Pacific and South American continents will outsource more procurement.

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