Procurement outsourcing is becoming increasingly popular as a way for organizations to save money. This is because procurement service providers (PSPs) offer deep category and sourcing expertise, efficient operations, strong controls, and robust analytics. These capabilities have matured and PSPs now offer superior levels of savings compared to internal-only solutions. However, adoption of procurement outsourcing has been slow due to its unique nature and lack of understanding among procurement executives. Additionally, some early projects may have been unsuccessful due to poor structuring or resistance from procurement personnel. The solution provided by a PSP includes a mix of strategic consulting, project management, analytics, and transactional processing, each requiring different levels of interaction.
