Procurement Outsourcing Market Sees Record Contract Signings and Extensions in 2010

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Dallas — April 7, 2011 — Everest Group

  • End-of-term activity will be significant as 45 percent of procurement outsourcing contracts, valued at nearly $3 billion, are up for renewal within the next three years.
  • The small/medium-sized business (SMB) segment will see higher adoption levels, influenced by new platform-based offerings that include software-as-a-service (SaaS) as a delivery model.
  • Economic recovery will lead to increased adoption in the financial services and telecom sectors.

Saurabh Gupta

  • The number of small-sized contracts increased; nearly 70 percent of contracts signed last year have a TCV less than $15 million.
  • While manufacturing companies led adoption, the consumer packaged goods and retail sectors together accounted for 35 percent of market share in terms of TCV.
  • The United States led procurement outsourcing adoption, accounting for 45 percent of contracts signed, followed by Europe with 43 percent.
  • Beyond procurement, buyers were increasingly interested in adjacent supply chain processes such as fulfillment and transportation and logistics management.

Accenture IBM ICG Commerce buyingTeam Global eProcure Xchanging CapGemini Corbus Genpact HP Infosys TCS Wipro DSSI HCL HCMWorks

  • Market success in 2010 based on ACV growth, number of contract signings and value of contract signings last year.
  • Capability advancements in 2010 based on expansion of scale, scope, delivery footprint and technology investments.

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