World-class procurement organizations now deliver services at 17 percent less cost than typical companies while offering improved effectiveness, largely by becoming more customer-centric, according to research from The Hackett Group Inc.
Many mid-sized U.S. cities and other areas now make attractive alternatives to India and other offshore locations for companies considering consolidating finance, IT and other business services operations for shared service or global business services centers, according to new research from The Hackett Group.
Despite ongoing economic and business environment challenges, world-class procurement organizations continue to outperform the peer group by a wide margin, up to $6m in cost savings for the typical large company. They deliver services at 19 percent lower cost with greater effectiveness and require 27 percent fewer full-time-equivalents (FTEs) per $1bn in spend. For many, efficiency gains have reached their practical limits. What's next?
Procurement leaders are expanding their priorities for 2014, moving beyond a historic emphasis on reducing purchase costs and adding focus on expanding and deepening the scope of spend influence as well as supporting supplier-led product innovation, according to 2014 Procurement Key Issues research from The Hackett Group Inc.
While many large companies are aggressively pursuing globalization of their products and brands, the large majority are flying blind, without the ability to truly see what is happening globally or make adjustments, according to new research from The Hackett Group Inc.
Large companies in North America and Europe are now losing over 250,000 jobs each year in IT, finance, and other key business services areas, due to the combined impact of offshoring, technology-driven productivity improvements, and the low-growth business environment, according to a new research update from The Hackett Group Inc.