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 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