Procurement Outsourcing (PO) Annual Report 2018: Driving Strategic Value from Procurement

19 Sep 2018
by Vatsal Gupta, Vani Oswal

The global multi-process Procurement Outsourcing (PO) market is expected to witness a growth of 11-12% in the next three years to reach US$3.6 billion in size by 2020. The growth is driven by increase in outsourcing of procurement functions by enterprises to leverage external sourcing expertise and technology know-how. The market has also witnessed the focus of Chief Procurement Officer (CPO) expanding beyond driving down the overall spend and operating costs to delivering more strategic value to the larger enterprise, leveraging both technological solutions and supplier-enabled innovation. As a result, buyers are demanding more from service providers, who are looking for ways to meet these evolving business requirements and create differentiation in the market.

In this study, we analyze the global multi-process PO market in 2017. We focus on:

  • Key emerging themes
  • Market overview and adoption trends
  • Solution characteristics
  • PO service provider landscape, covering service providers’ market share across industry, geography, and buyer size

The scope of analysis includes:

  • Third-party PO deals; it does not include shared services or Global In-house Centers (GICs)
  • Over 1,500 multi-process PO deals signed as of 2017, with a minimum of three procurement processes, over US$1 million in ACV, and a minimum contract term of three years
  • Coverage across 13+ PO service providers with multi-process capability, namely Accenture, Aegis, Aquanima, Capgemini, Corbus, Genpact, GEP, HCL, IBM, Infosys, TCS, Wipro, and WNS
  • Global survey and one-on-one executive-level buyer interviews to understand how organizations perceive their PO engagements

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Procurement Outsourcing (PO)

 

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