Washington — Buoyed by a projected 26 percent compounded annual growth rate, the value of global contracts for the outsourced procurement of services and goods is expected to more than triple from $200 million currently to $640 million by 2008, reports market research firm NelsonHall.
The financial services sector, along with high-tech/manufacturing, is showing the most interest in outsourced procurement activity among industry segments. The principal categories targeted by procurement outsourcers currently include IT, business travel, telecommunications, contract labor, and office supplies and equipment. Growing areas include professional services; marketing; and maintenance, repair and operations materials.
The NelsonHall findings follow on the heels of a report that back-office business process outsourcing contracts awarded globally during the first quarter were dominated by finance and accounting services, rather than human resource services, which had previously prevailed.
However, the bulk of BPO contract value worldwide (78 percent) was derived from front-office and middle-office services. Back-office accounting, HR and procurement outsourcing services represented only 22 percent of global BPO contract value.
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