The outsourcing of procurement has continued to rise, it has been reported, driven by a number of factors, including the potential of using superior technology systems without the need for direct investment into such facilities.
According to the 2007 Black Book on Procurement Outsourcing study from Scott Wilson and Doug Brown procurement outsourcing efforts are often focused on total spend management, sourcing and supply chain, category management and transaction processing.
"Procurement outsourcing is among the fastest growing business process outsourcing areas," the authors state.
"We expect the worldwide market for PO to increase to $6 billion (£2.88 billion) in 2008, projecting a 37 per cent compounded annual growth rate."
The report adds that procurement outsourcing offers two major benefits to firms, namely cost reduction and value creation, with these features especially in demand in the modern business world.
Earlier this week, Kenya was rated as one of the best connected markets in Africa, Business Daily reports, featuring in the top five for the reliability of its supply chain.
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