Top 10 Procurement Outsourcing Providers (2006)

This TOP 10 has been made by Denise Doig (Denise Doig is the Managing Editor of HRO Today, FAO Today, and HRO Europe magazines. She can be reached at It is clearly focused on outsourcing services, as FAO today is. On one hand, well known companies are listed but on the other hand I’m pretty sure you will be surprised to read their name related to this topic. Well… I did. Here is the beginning of the article from Denise Doig, and the list!

As the indirect procurement outsourcing market posts double-digit gains, the top service providers listed here are the go-to vendors for the industry.To date, procurement outsourcing has been the small fry in the value meal of FAO—not necessarily small in numbers but small in recognition. However, as more companies look for ways to cut costs, procurement outsourcing is becoming one of the best options. Compared with FAO, procurement has a bigger financial impact on the bottom-line. According to analysis from the Everest Research Institute, managed procurement services as a percentage of sales has a financial impact of 0.5 to 2 percent, while overall FAO is estimated at 0.2 to 0.6 percent. The most lucrative savings are in indirect procurement. Everything including the kitchen sink can be managed externally. These include office supplies and equipment; global travel; maintenance; repair and operations; HR benefits and services; marketing and advertising; printing services; facilities and property services; IT hardware and software; temporary labor; telecom and network; business and professional services; capital equipment; utilities and energy; and others. Provider manage multiples phases of internal purchasing for different spend categories but mostly the procure-to-pay phase. According to Forrester Research, a procurement deal involves a long-term agreement, typically more than 18 months; vendor acceptance of accountability for outcomes; and the transfer of responsibility. There are different options in procurement outsourcing—a provider can source goods for the client, administrate electronic tools used by suppliers, or mange specific purchasing tasks. In this first listing of the top procurement providers, we have included a description of services, descriptions of their deals won to date, and other pertinent information for all 10 vendors. We also have included a case study detailing the ongoing arrangements between a procurement provider and buyer. We’d like to acknowledge Phil Fersht, VP, Everest Group, for helping us finalizing the list. (…)” read more…


  1. Scott Laxton 18 September 2008
  2. kevin neville 6 October 2008

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