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What does procurement outsourcing mean?

Guy Strafford
Mar 21, 2011 8:44:00 AM

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Guy-New

A recent article, what's in a name, discusses how 'procurement outsourcing' has come to mean different things.

To many people, it involves shifting work wholesale to low-cost countries using technology and streamlining processes, running the same processes for less money. It’s all about efficiency.

Yet true procurement outsourcing – and where multiples of the value achievable through efficiency are possible – is about how to do procurement better. The benefits are all about effectiveness.

a) Do you agree with this definition?
b) Why is there no consistent, universal answer as to what 'Procurement Outsourcing' really is?

Guy Strafford

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