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Increase in procurement outsourcing

1 July 2013

More managers are opting to farm out procurement, according to a new study.

Everest Group's 2013 Procurement Outsourcing Annual Report shows there was a ten per cent increase in outsourcing last year as companies sought to limit their costs. 

This led to the total value of the global procurement outsourcing market growing to $1.72 billion dollars (£1.13 billion). The report found consumer goods and manufacturing firms drove this increase as they looked to find new cost efficiencies.

However, the average contract length remained at a similar level to the past few years.

Everest's research showed that large firms continued to be the prime adopters of procurement outsourcing, although an increasing number of small and medium-sized firms are also farming out their buying services.

Saurabh Gupta, Everest Group vice-president, said the development of new technologies and indirect category expertise has allowed companies to reduce their procurement spend and compliance through outsourcing.

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Categories: Commercial, Procurement & Supply Chain


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