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BPO U-turn: Outsourced Procurement Seen Bucking Offshore Trend and Going Protectionist
Black Book of Outsourcing finds U.S. companies declaring only domestic suppliers need apply for business process outsourcing services; public sentiment seen creeping into BPO decisions
Chief financial officers and top procurement executives in the United States and U.K. increasingly are looking to domestic providers of procurement outsourcing services, even as they seek to expand their use of business process outsourcing (BPO) to reduce costs, according to the latest "Black Book of Outsourcing" report from Brown-Wilson Group.
Seventy-four percent of U.S. CFOs and procurement executives in a recent survey by Brown-Wilson said that they would have a preference for domestic BPO service providers. One well-known American corporation went as far as to state that it would not consider bids from vendors with more than half of their workers employed offshore, regardless of whether they were U.S.-headquartered, according to Brown-Wilson.
Why is protectionism hitting the procurement outsourcing sector so hard?
"Procurement leaders have always been notorious for having stanch watchdogs at the company gate, and demonstrating responsible protection of corporate assets is inherent in their DNA," suggested Scott Wilson, partner at Brown-Wilson. "However, national protectionism in terms of swaying decision-makers away from offshore outsourcing is indicative of the underlying sentiments of the American electorate, and it is working its way into BPO buyer decisions."