Procurement outsourcing in Indian market – Opportunities and constraints

Abstract

As the Indian BPO industry has matured considerably in the IT and ITES sectors, Indian service providers are looking for new and emerging opportunity areas where they can position themselves. Procurement Outsourcing (PO) is one such market, which opens the horizons for both global customers as well as Indian ITES-BPO players. The cost base that PO can potentially address is significantly larger that most BPO’s. A significant component of the cost base that PO addresses is the non-core procurement spend. Per research estimates, PO addresses a cost base that could represent 5-15% of the organisation’s overall revenues.