SOURCE: Emptoris, Inc.

Emptoris, Inc.

May 04, 2010 11:19 ET

One in Three Global 2000 Companies Reports Poor Visibility Into Services Spend

Purchasing Magazine and Emptoris Survey Details Senior Executives Concerns on Managing Services Spending

BURLINGTON, MA--(Marketwire - May 4, 2010) -  One in three (33%) Global 2000 companies report that their visibility into services spend is poor, and more than 58% report that getting better control and visibility over services spend is a top organizational priority, according to two new surveys conducted by Emptoris in conjunction with Purchasing Magazine and Supply Chain Management Review.

Just 14% of global organizations reported "high visibility" and strong central control over services spending; while 53% report "some visibility" and limited controls over services spend; and 33% report "poor visibility" and poor control over services spend.

"These results highlight a problem at global companies in terms of their visibility and control over the services procurement process. Global companies heavily rely on outsourced services and labor for their growth and operations, but management processes and technology adoption have not kept apace. As a result, there is a significant lack of visibility into services spending and, in many cases, compliance exposure," said Seth Wolins, General Manager for Services Procurement at Emptoris, Inc. "There is also a significant opportunity for savings and for more agile management of variable-cost labor. From what we see in the market, it's clear that services procurement is fast-becoming a critical priority for Global 2000 companies." 

More than four in ten (42%) of global organizations surveyed report that they have begun developing or implementing a formal services procurement program to address the management challenges they face with outsourced labor and services. Of those organizations, 24% report that they expect to employ a technology solution in that effort within the next 12 to 18 months.

The factors driving services procurement programs and technology adoption are primarily related to the quest for additional sources of savings, with 71% of companies reporting this as a driver. Other significant concerns include the need for increased visibility (58% of companies reporting); streamlining and automating processes (26%), the need for additional financial controls (17%), and compliance with laws and regulations (19%). The leading areas of outsourced services on which Global 2000 companies plan to focus their efforts include professional services (45%), contract or contingent labor (40%), facilities management (36%) and IT services (34%).

The surveys were conducted during the first quarter of 2010 and involved more than 300 respondents.

The Emptoris Services Procurement Solution addresses these challenges and these areas of spend at some of the world's largest companies. More than 200,000 employees at leading global companies use the solution to find, evaluate, purchase, manage and pay for all types of 3rd-party services including IT outsourcing, contingent labor, facilities management, business consulting and marketing, among others. The solution is available in 13 languages and utilizes all major currencies. For further information, visit www.emptoris.com/solutions/services-procurement.asp.

Contact Information

  • For further information, contact:

    Dan Cahill
    (917) 617-0106
    Email Contact