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What Are the Other Advantages of Outsourcing Procurement

Other strategic advantages of procurement outsourcing that are equally valuable and appealing include:


Procurement outsourcing enables businesses to easily scale up their procurement teams in response to fast changing market demands. Some procurement service providers offer an on-demand service model, in which clients only pay for the resources or services they require.

If demand falls, third-party providers can generally reduce or replace employees more swiftly.


The 80/20 rule, as defined by BpoBD, is especially applicable in procurement, where 20 percent of the overall vendor pool accounts for 70 percent to 80 percent of total spend. The remaining 20% of vendors, which are undoubtedly less strategic, are typically overlooked. Money is, without a doubt, left on the table.


Procurement service providers have a wealth of experience from a variety of clients, industries, and locations. This may be difficult to match for a dedicated corporate staff.