Industry Analysis & Industry Trends
The Procurement Outsourcing Services industry is expected to grow moderately during the five years through 2014-15, even though economic conditions were weak for much of the period. This is mainly because firms chose to outsource in order to improve cost efficiencies when operating conditions were difficult. Demand from public sector organisations increased because of pressures on public spending. In addition, rising IT and telecommunications adoption made it easier to outsource procurement-related activities. However, weak capital expenditure, lower procurement volumes and a fall in the number of firms operating in United Kingdom at the start of the period constrained demand for the industry's services. Industry revenue is projected to grow at a compound annual rate of 3.6%... purchase to read more
Industry Report - Industry Investment Chapter
The level of capital intensity is determined by comparing the human and capital equipment factors of production using wages and depreciation as proxies. Comparatively high depreciation costs indicate substantial investment in depreciable assets, such as buildings and equipment, resulting in high capital intensity. Conversely, comparatively high wage costs indicate high labour intensity.
The industry exhibits a low level of capital intensity. In 2014-15, the capital-to-labour ratio is expected to be 1:26.22, which indicates that for every £1.00 spent on capital, operators will spend £26.22 on labour. The level of capital intensity is low because the industry is highly reliant on skilled employees with very particular knowledge, rather than machines... purchase to read more