Procurement offshoring is next big wave

After BPO and KPO, now it's PO or Procurement Outsourcing that's catching up in India. It began way back in 1995, with the Thames WaterAccenture contract but lost steam somewhere along the way. But now, PO is emerging as another arm in India's successful outsourcing story.

IDC estimates the worldwide PO market reached $627 million in 2005, and is expected to expand at 22.3% (cumulative growth rate) to become $1.7 billion by 2010.

With such high growth rates, Indian players are gearing up to take a larger share in the pie. Although still at a nascent stage, experts predict PO is slated to emerge as India's next big outsourcing story. "India's potential to emerge as the favorite destination is not because of labour arbitrage alone. It's due to its highly skilled English speaking labour pool, engineering skills, value enhancement through low-cost country sourcing, competitive advantage, process and quality focus," says Rakesh Mittal, COO and president of Corbus a prominent global PO player.

PO spans a spectrum of procurement related processes like requisitioning of goods, vendor management, invoice processing, order managers, procurement planners, catalogue development roles, supplier development as well as supply coordination in low cost countries.

About the Author

Read full article here: Offshore Outsourcing World. We are in offshore business and we are here to provide latest information on offshore outsourcing.