Supply management business process outsourcing has been red hot in recent years. The market grew 30 percent in one year, driven by procurement and strategic sourcing services being offshored to India in record numbers. However, because of the short-term mentality of companies jumping into engagements for the sake of short-term cost savings, this growth is not sustainable. Many of the companies have a long road ahead if they want to follow through with process optimization and make future efficiencies.
Source: AMR Research