Executive Summary

The Procurement Outsourcing (PO) market is still nascent, primarily due to major barriers preventing it thus far from reaching its potential. However, PO has the potential to become the next "game changer" in outsourcing. Increasing buyer interest, together with a concerted push from major suppliers, are trends that foretell a nascent market taking steps toward maturity. But, the industry must still come together to help develop standards and best practices to effectively address buyer concerns in PO.

This paper discusses:

• The high growth potential of PO
• Factors currently driving organizations to evaluate PO options as part of their overall FAO approach
• The major barriers that have prevented PO from reaching its potential
• Six key challenges that the industry must address in order to drive growth in PO