Will Indirect Procurement BPO Break Out in 2007?

I often liken the potential of indirect procurement BPO (or managed procurement services) to that of hybrid cars -- virtually unlimited in the mid-term planning horizon (unless fuel cells catch hold) but not without a number of hurdles to adoption and material marketshare penetration in the immediate time frame. Given this, many people have a lot of unanswered questions about the area. But the good news is that there are some very specific firms to go to learn about procurement BPO. Indeed, I'd strongly recommend engaging an independent advisor with specific outsourcing expertise to help evaluate organizational requirements and needs. The Everest Group, an outsourcing and offshoring consultancy, is one of the most respected procurement BPO advisors in the space (I also lump rival TPI in the same category). If you're interested in learning more about Everest's views on Procurement BPO, I would strongly urge you to tune into their upcoming webcast on December 13th.

Everest's webcast will cover the procurement outsourcing "value proposition, market size, future direction, buyer adoption trends, current and evolving service provider landscape, and pricing and contracting models." According to Everest, "While procurement outsourcing (PO) is a nascent market when compared to other BPO areas, 2007 is poised to be the landmark year with maximum contract signings." I look forward to learning why based on Everest's research. And you should too, given the potential of indirect procurement BPO (as well as GPOs) to drive significant savings to companies large and small.

Jason Busch

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