B2B Payments

Procurement Outsourcing Market Set To Improve

According to research from the Everest Group, the procurement outsourcing market had a 12 percent year-on-year growth in 2013, and is expected to grow between 10 and 12 percent this year.

The Procurement Outsourcing Annual Report 2014: Expanding New Horizons showed that in 2013, the market totaled $254 billion of managed spend and $2 billion in annualized contract value.

The company explained in a released statement that the procurement market is currently in a state of flux, and that there are simultaneously a record amount of new deal signings and number of terminations. That type of volatility, according to Everest, is attributed to the switching of service providers and is an indication of “reducing stickiness.”

“While the value proposition of procurement outsourcing remains primarily driven by cost and spend reduction, new themes, such as category expertise, access to technology, and integrated view/governance, are also emerging,” the organization said.

Everest added that procurement outsourcing is moving beyond its traditional borders. This is proven by its continuous merger with finance and accounting, greater penetration into supply chain processes, and its having a higher collaboration with human resources.

“What’s Hot” is aggregated content. PYMNTS.com claims no responsibility for the accuracy of the content published by the original source.

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