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Procurement outsourcing 'enjoyed record year in 2010'
New contract signings and extensions in the procurement outsourcing market grew to record levels last year, according to a new report.
Research from Everest Group found that annual contract values (ACV) increased by 13 per cent to reach $1.3 billion (£798 million) as the global economy continued to recover in 2010.
The company predicted that ACV levels for procurement outsourcing will extend to $1.5 billion this year, representing managed spend of approximately $190 billion.
"We continue to see an increase in sourcing-focused contracts, driven by the need to generate quick savings," commented Saurabh Gupta, vice president of research at Everest Group.
The report indicated that consumer goods firms, retailers and manufacturers will continue to lead the trend for outsourcing this year.
Everest also revealed that the US accounted for 45 per cent of all procurement outsourcing contracts signed in 2010, followed by Europe with 43 per cent.
Consulting firm Efficio recently advised procurement managers to involve people from other departments and build a team with diverse skills in order to lead a successful outsourcing project.
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Categories: Procurement & Supply Chain