Procurement business process outsourcing (BPO) services are increasingly being adopted in numerous industries around the world. The world’s top procurement outsourcing companies have also witnessed a strong growth in their procurement BPO businesses driven by IT and technology advancement. Procurement BPO enables companies and organizations to align their business processes better and improve operational efficiencies. It also helps them to reduce operational cost and enhance supply chain management. Thanks to its series of benefits such as cost reduction, operational efficiencies, flexibility, industry expertise, and easy tracking and management, procurement outsourcing is gaining greater popularity in the global business environment.
What is Procurement BPO?
The procurement process is essential for all businesses. Whether it’s direct procurement (such as purchasing of materials or other goods and services for final product) or indirect procurement (such as purchasing of office equipment, utilities or marketing activities), all types of procurement processes require a relatively large amount of labour, time, and money. What’s more challenging in the procurement process is trying to maintain effective and efficient strategies with a constantly evolving marketplace. That’s where procurement business process outsourcing service steps in to address all these specific needs. In other words, procurement BPO is a third-party service to take care all the businesses’ needs during the procurement process, from identifying suitable suppliers all the way to the integrated supply chain management.
Key Benefits of Procurement BPO: Cost Reduction, Efficiency and Better Resources Allocation
Businesses who outsource their procurement processes can better allocate their resources and put more focus on their core business operations. Procurement BPO service providers can often bring purchasing expertise, while cutting down spending on projects that are not normally supported by in-house procurement teams. By using a procurement BPO service, companies can cut down on vendor spending and save cost on hiring full-time employees with the same expertise. Meanwhile, the collective expertise offered by procurement outsourcing companies can also help to save time and improve efficiencies, due to their scalability, flexibility, and management capability. This means the resources of the business, such as employees’ time and skills, can be put to better use in areas which directly contribute to the business growth. Therefore, cost reduction, efficiency and better resources allocation are some of the key benefits of procurement outsourcing services.
Global Procurement Outsourcing Market Overview
According the latest report from SpendEge, the global procurement business process outsourcing (BPO) market size (in terms of category spend) will grow by USD 4.32 billion from 2018 to 2022, registering a strong CAGR of over 17% during the forecast periods. The recent market trends have seen the growing adoption of automating BPO operations in the global procurement process, which allows service providers to significantly improve their sustainability in the market. Importance is being given to building reusable service delivery platforms and increasing scalability and automation by leveraging new software tools that quantify, manage, and control the implementation of a process within as well as between organizations.
SpendEge has been closely monitoring the latest procurement BPO market trends to create the best-in-class sourcing and procurement market intelligence solutions. These reports and solutions are designed to help our clients mitigate different types of procurement risks and develop effective strategies to optimize their sourcing and procurement excellence. Take a look at SpendEge’s BPO Services Industry Intelligence Library and download your free sample report now!
Top 10 Procurement Outsourcing Companies in the World 2019
Accenture is currently a global leader in procurement BPO services. Accenture helps clients across a wide range of industries to develop effective procurement solutions. By supplementing their procurement capabilities with full suite of source-to-pay BPO services—supported by leading practices, innovative tools and Accenture’s Global Delivery Network—organizations can increase their control, generate savings, lower risk and improve their speed to value.
Accenture’s main services include: Analytics-as-a-Service, category and supplier enablement, contract lifecycle management, digital procurement, energy management, and supplier relationship management.
Infosys is a world’s leading procurement outsourcing companies that is based in India. Infosys BPM sourcing and procurement outsourcing solutions help clients lower third-party spend and optimize procurement operations.
Infosys’ main offerings include: Category management and strategic sourcing, operational sourcing and tactical buying, and procurement operations and help desk.
IBM Procurement Services deliver a highly personalized, enriched user experience that can learn over time by accessing refined, real-time data. This allows for quicker, more informed decision-making and maximizing preferred suppliers. IBM global spend leverage and category expertise can optimize spend savings.
IBM’s main services include: Procurement Strategy and consulting, sourcing Services, purchasing and payables, and third-party risk management.
DXC Technology’s Global Sourcing Optimizer leverages HANA-based computing to put robust analytics into the hands of financial controllers, buyers and other critical business users. It provides exceptional insight into how inflation affects sales and margins. Buyers can leverage these tools to make better decisions on where to buy, how much to purchase, and how to negotiate optimized pricing.
Capgemini’s Global Enterprise Model (GEM) offers an integrated service of the entire source-to-pay cycle. Each component of its solution targets a specific strategic objective, building a comprehensive procurement process throughout entire procurement lifecycle.
Capgemini’s main procurement services include: Strategic sourcing and category management, procurement operations.
Genpact‘s procurement management solutions and outsourcing services are scalable across the S2P process and serve direct and indirect procurement teams. Genpact offers end-to-end procurement outsourcing solutions, enabled by its deep domain experience, advanced technology and strategic partnerships.
Tata Consultancy Services
TCS helps to effectively enhance and manage dynamic supply chain ecosystems by leveraging digital technologies and enabling data-driven insights to identify new proactive approaches and opportunities, driving informed, timely decisions. The TCS approach helps adopt and deploy emerging digital technologies as they mature to provide process improvements that deliver immediate value.
Wipro’s procurement outsourcing services combines robotic process automation, business process as a service, analytics, and artificial intelligence along with their proprietary tool base to automate and consolidate processes. It helps organizations achieve higher success in sourcing & procurement process.
HCL’s sourcing and procurement solutions are facilitating cost reduction up to 50 percent as well as significant cycle time reductions by reimagining their sourcing and procurement processes. Its “Advisory & Execution” framework for supply chain transformation enables business process overhaul and significant savings in warehousing and costs related to the procurement process.
SYNNEX is an IT supply chain services company offering services to various of industries such as manufacturing, software, and retail. SYNNEX strategic procurement is focused on providing reseller partners with the resources and services they need to deliver the best solutions to their clients, all while increasing their profitability and maximizing their business.
For more market insights about:
Global category spend
Category spend growth
Spend segmentation by region
Regional spend dynamics
Regional influence on global spend
Regional spend opportunity for suppliers