Industry Analysis & Industry Trends
The Procurement Outsourcing Services industry faced challenges in a shrinking market over the five years through 2012-13. Industry revenue is estimated to decline by an annualised 1.1% over the period to reach £2.53 billion. The industry's market shrank as the number of businesses in the United Kingdom fell. The remaining businesses were also wary of their financial outlook and were less likely to invest in new procurement processes, which cut demand for industry services. On the other hand, businesses customers were inclined to outsource their procurement function as they strived to find greater efficiencies in a competitive environment. As such, the industry benefitted from a countercyclical trend... purchase to read more
Industry Report - Industry Products Chapter
Unlike business process outsourcing that tends to focus on back office services, the Procurement Outsourcing Services industry specialises in sourcing and supplier management services. Due to the vast range of procurement services provided, the industry is ultimately shaped by direct or indirect procurement outsourcing services.
Direct procurement is primarily geared toward raw materials and production goods, which are used in the production process of a company. In the livestock industry for instance, animal feed would be one of the prime direct procurement categories. Over the past five years, this segment exhibited marginal growth as companies typically operate with enough scale to develop and run in-house procurement teams... purchase to read more