Procurement outsourcing (PO) in 2011 witnessed a strong growth. The PO market grew by 14% according to the latest report by Everest Group. It is estimated that more than $190 billion were spent on PO by the companies all over the world.
Today PO solutions are not only restricted to large companies, in fact mid-sized companies too are signing up PO deals of same size when compared to that of large market contract size. It is expected that by the end of the financial year 2012, the PO market would continue to show 15% growth in terms of ACV.
Procurement cannot be outsourced as easily as other business process because procurement function is directly related to the cost of goods sold and profit & loss of the business . Moreover there are only a few companies who can claim to be experts in Procurement Outsourcing. And, this makes it difficult for the companies to choose the best PO partner for them.
Recently Everest Group, one of the leading research and analyst firm announced the Global PO market leaders for the year 2012 making it easy for the companies who are looking out for the option of outsourcing their procurement activities. Below is the list of the world’s top PO service providers and their procurement solutions.
IBM provides “Source to Pay” services which help the companies to communicate virtually with suppliers, partners and customers to fasten their procurement activities. The procurement services include:
- Sourcing: These include spend analysis, category strategies, supplier/Strategy management
- Procurement: the service include order management, spot purchase management and content sourcing
- Payment: Their services include invoice, receipt and reconciliation, payment file and blocked invoice resolution.
Their PO services include:
- Sourcing and category management: The services include sourcing, demand management and supplier performance management.
- Sourcing support: Their services include spend analytics, market analysis, spot buy, auction services and contract administration.
- Procurement operations: The services include requisition processing, invoice processing, travel and expenses processing, supplier enablement and catalog enablement.
Procurian offers comprehensive procurement solutions and flexible procurement solutions. Their comprehensive procurement solution through a specialized procurement infrastructure integrates the services of specialists and market leaders to help the companies with their procurement activities and supports them in other strategic objectives.The flexible procurement solution is more customized and helps the companies to mitigate the risk associated with procurement and maximize the returns. Their services include sourcing, implementation, contracting and contract management, transaction management, supplier relationships management and continuous cost innovation.
GEP’s procurement outsourcing services include:
- Procurement Operations: The services include PO processing, contract administration, supplier on-boarding, catalog management, invoice management, P-Card administration, help desk.
- Category Management Support: These include market intelligence, spot buying, contract and supplier management, savings and compliance tracking.
- Strategic Sourcing: Opportunity Assessments, sourcing projects, program management.
Capgemini’s procurement services include:
- Sourcing Management
- Order Management
- Purchase-to-Pay Management
- Compliance Management
You can see the entire report here.