IBM Wins Solectron Procurement BPO Deal

From a press release standpoint, IBM appears to be the procurement outsourcing provider with the most traction in the past few months. The latest Solectron deal is further validation that Spend Management outsourcing is on the rise, especially for indirect procurement. According the press release, "IBM will manage more than $1.2 billion per year of indirect spend in areas such as temporary contract services, office equipment, utilities, and telecommunications. Core to the project is the implementation of IBM's complete Procure-To-Pay procurement solution that will be integrated with Solectron's internal systems and controls. IBM's solution will enable web-based requisitioning as well as efficient procurement and supplier payment." Outsourcing relationships like this enable companies like Solectron to focus on cost reduction and quality improvement in their core business (scroll down for post) while relying on partners for non-core spend categories.

Jason Busch

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