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Procurement directors warm to outsourcing.


The outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management.  bug has hit procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases.  directors, and, according to according to
prep.
1. As stated or indicated by; on the authority of: according to historians.

2. In keeping with: according to instructions.

3.
 a new survey, most of them polled in major industrial countries say they intend to turn to it in the next few years.

The survey by Accenture, drawing from a number of industries across Europe and the U.S., found that the French are actually the most likely to outsource their procurement activities, followed by the U.S. and the U.K. Currently, 22 percent of the 200 procurement directors polled said they are outsourcing that function, most often in non-strategic processes such as application hosting and requisitioning to pay.

"Survey results show that procurement outsourcing Procurement Outsourcing is the transfer of specified key procurement activities relating to sourcing and supplier management to a third party — perhaps to reduce overall costs or maybe to tighten the company's focus on its core competencies.  is here to stay," said Richard Laub, the partner in charge of Accenture's European procurement European Procurement is a centralized system of notification of public procurement of all supplies, services, and works by government bodies in the European Union (formerly known as the EEC) has been in existence since before 1992, as seen in Directive 92/50/EEC.  practice. "Looking ahead, however, the principal challenge will be to derive more than just cost savings. Procurement outsourcing is a powerful weapon that savvy companies can use to build new strategic and competitive advantages."

Perhaps not surprisingly, company size correlated strongly with an interest in outsourcing. Thirty-one percent of the largest companies polled said they current outsource some aspect of procurement, with another 36 percent saying they plan to do so in the future; the percentages for smaller companies were 15 percent and 34 percent, respectively.
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Copyright 2004, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Title Annotation:processes
Author:Heffes, Ellen M.
Publication:Financial Executive
Article Type:Brief Article
Geographic Code:1USA
Date:Jan 1, 2004
Words:207
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