Procurement Outsourcing: Manufacturing leads. High Tech & Telecom is lagging.

As illustrated in below picture, Everest Group is showing insightful trends with regards to Procurement Outsourcing adoption per Industry, between 2009 and 2013, and revealed great disparity:

  • Strong increase in Financials Services, Manufacturing and Travel/Transport, from respectively 10% to 28% , 26%to 32%  and 1% to  7%,
  • Lighter increase in the Energy sector from 5% to 8%
  • Dramatic slow down in High Tech & Telecom and in CPG & Retail, respectively from 19% to 4% and from 26% to 11%
Procurement Outsourcing adoption: Manufacturing leads, High Tech and Telecom is lagging big time

Procurement Outsourcing adoption by Industry

3 main factors are impacting the industry readiness for “make or buy” and explaining such trends which I believe still valid to date in 2016:

  • Investments already made for Procurement in terms of  resources, expertise or technology
  • Industry culture: “collaborate, Create, Compete or Control”,
  • Procurement Maturity : quality and internal position of the Procurement organisation

 

Leave a Reply