Procurement outsourcing spans a spectrum of procurement related sub processes (e.g., requisitioning, vendor management, invoice processing etc.), which are typically spread out across multiple spend categories (MRO, IT Hardware, administrative supplies etc.). Most procurement outsourcing initiatives are multi-year arrangements and are driven by the objectives of improved service levels, cost savings, etc. Procurement Outsourcing offers companies the ability to focus on their core competencies and gain access to leading external capabilities in non-core activities. This helps to ultimately improve procurement performance and results across all categories and activities without making large infrastructure investments. Many companies are outsourcing and are moving many of their back-office operations overseas. Although most Fortune 1000 corporations have implemented some form of e-Procurement, outsourcing and strategic sourcing, one significant area of opportunity is exploring Procurement Outsourcing overseas especially in the Philippines, India and China. It is also most important to understand what aspect can be outsourced especially in procurement when it is done offshore. Procurement outsourcing, more than just a cost savings remedy, is a powerful weapon that many leading companies will use to create and build new and strategic competitive advantages.

2009 Top 20 Procurement Vendors

New Drivers Influencing Vendor Selections

Predicted High Growth

Overview of Outsourcing Leaders

2009 Procurement Summary