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 Products Chapter
Unlike business process outsourcing, which tends to focus on back-office services, the Procurement Outsourcing Services industry specialises in sourcing and supplier management services. A vast number of procurement services are available, but the simplest division is into direct or indirect procurement outsourcing services.
Direct procurement covers the acquisition of raw materials and goods that are used in a firm's production process. In the livestock industry, for instance, animal feed would be one of the prime direct procurement categories. This segment has exhibited marginal growth because companies typically operate with enough scale to develop and run in-house procurement teams... purchase to read more