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Global myths of procurement outsourcing: Myth 5 - PO means off-shoring

Dec 10, 2012 6:20:00 AM

Comments 8


This myth is partially true - and partially a myth.  The offerings of many outsourcers are about off-shoring jobs to a low cost country, e.g. India.  However, not all providers operate this way.

Those that do typically have a "‘multi-tower"’ offering, whereby procurement sits within a wider finance & accounting deal, alongside HR and IT outsourcing.

But procurement outsourcing in these types of deals is not what we, Proxima, recognize as procurement outsourcing.

They are generally focusing on the transactional end of the process - not on sourcing.  In effect, most off-shoring models are about running the same service you were getting before, more cheaply.

To us at Proxima, successful procurement outsourcing hinges on our ability to influence the behavior of people in the organization - and that means having business partners on-site, face-to-face.

Success hinges on having deep expertise and market insight - that means being in the market, and that requires in-country presence.  And for many organizations, it hinges on investing to save - and that means creating jobs.

Proxima is proud to be an employer of people in the US and Europe - where our clients are based.  It’s what makes us different, and what ensures we are able to offer the best procurement experience an organization is likely to encounter.

The truth: procurement outsourcing with Proxima is an on-shore/ near-shore model.  We create on-shore jobs in both US and Europe

*Click here to access the related posts: Myth 1 - ROI comes from cost reductions, Myth 2: The ROI from procurement outsourcing is insufficient, Myth 3: PO damages stakeholder relationships and Myth 4: PO results in a loss of control and increased risk

Proxima Group

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