The growth trend for outsourcing in 2013 appears to be pretty strong. Even though the year started off at a slow rate, the procurement process has gained momentum and is poised to take off in a big way.
A broad look at all elements of the process and functions of procurement reveals that many opportunities are expected for outsourcing enterprises directly and indirectly.
Direct gain is obtained when outsourcing is carried out on the basis of category spending. Otherwise when a company outsources a part of its service, a major portion of the associated procurement activity and spending is gained as part of this.
In the traditional setup, outsourcing of key services has laid more emphasis on procurement of goods and services in an indirect manner. As the outsourcing and procurement industry predict rapid growth in 2013, many companies have started to realize the potential avenues that other offshoring operations may hold in store.
Logistics, master data management, inventory management, and fulfillment of orders are some of the prime areas that hold the key to future outsourcing prospects.
Potential financial problems arising in Europe had resulted in organizations preparing for a tougher year ahead. Meanwhile, many companies were involved in discussions, in order to achieve higher automation capabilities.
All plans were targeted toward projects in 2013. During the course of recovery from the economic crisis, budgets for procurement had remained tight. However, with things looking up in the outsourcing industry and growth predicted for the remainder of the year, procurement activities have been going on in full swing, and the outlook remains as robust as ever.
Positive procurement trends for 2013
As regards procurement professionals, 2012 brought in great benefits. The year 2013 is showing a growth pattern that is expected to be seminal in shaping the outsourcing trend farther down the road.
Primary areas that have remained favorites since 2008 and are expected to set the cash registers jingling include procurement transformation and supply chain innovations. Profits in these areas are expected to aid in sustaining long-term growth.
A white paper was released by GEP for this year, which predicts that 2013 will reap benefits for supply chain and procurement professionals. This will be brought about by a combination of a supply and demand market that will be steady to meet the challenges ahead.
The paper from GEP features the trends in procurement for generic procurement strategies and broad categories totaling eight. These can be leveraged for the purpose of maximization of savings in 2013. Double-digit growth is expected in regard to savings targets. In addition, targets can be attained without compromising schedules, quality and timelines.
The positive trends in outsourcing and procurement are expected to continue for the rest of 2013. The growth in this sector is set to boost the industry to higher levels of achievement.