Public Sector Spend Management in the East

I love the fact that India is using Spend Management technology and processes to leapfrog other countries in their approach to public sector procurement. Contrast this with Western governments like France which are just starting to try to restrict the use of reverse auctions -- even in the private sector. According to the above linked article from India Times, "eProcurement is soon turning out to be the latest fad for state governments [in India]. Andhra Pradesh, which leads the way has clocked a e-procurement business of Rs 35,000 crore in the last two years, has netted a saving of Rs 5,630 crore on this count alone ... To exploit the full potential of digitalisation, cabinet secretary BK Chaturvedi has asked states to make e-procurement mandatory from April '07. "Apart from costs, the time for inviting and processing tenders has also declined from 6 months to 36 days," said Mr Bikshapati. It has also increased supplier participation as there are now 4.75 players per tender as against 3.5 earlier." Let's hope that for India's sake, this is more than just a "fad".

Jason Busch

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