Accenture Procurement Solutions Taps into Demand for Corporate Purchasing Services
NEW YORK; April 1, 2004 – Accenture today announced that it has formed a new business process outsourcing business to provide procurement services on an outsourced basis to large enterprises.
The new business process outsourcing (BPO) business, Accenture Procurement Solutions, provides sourcing-to-settlement services globally to corporate and government entities. Primary offerings include strategic sourcing, procure-to-pay transaction processing, supplier and contract management, technology design, build, hosting and run time support and management reporting. Len Sherman, a partner with Accenture for nine years, has been named president.
Accenture has been providing procurement BPO services for nearly 10 years. Accenture Procurement Solutions professionals currently serve six global clients (including Accenture), processing over $10 billion in procurement transactions and sourcing almost $5 billion in procurement spend annually.
“Accenture Procurement Solutions extends the range of BPO services we offer to our clients,” said Jack Wilson, Chief Executive - Business Process Outsourcing. “Each of our eight BPO businesses is built around high-reuse industrialized assets, technologies and intellectual property that enable our clients to achieve higher performance at lower costs.”
Procurement BPO is on the rise. A survey Accenture conducted last year of more than 200 procurement directors from a wide variety of industries across Europe and the United States found that nearly half of these companies are considering outsourcing part of their procurement operations within three years, more than double the number who said they currently outsource some aspects of their procurement functions.
In addition, IDC estimates that the worldwide procurement BPO market was $5.9 billion in 2002 and expects the market to increase at a five-year compound annual growth rate of 15.2 percent, to $12 billion by 2007.
“Accenture Procurement Solutions draws on our proprietary technology-enabled solutions, global network of solution delivery centers and an integrated approach to strategic sourcing and requisition-to-pay processing,” said Sherman. “These components, combined with our deep consulting resources in sourcing and procurement, enable us to deliver sizeable and sustainable savings in our clients’ procurement operating expenses.”
Accenture is a global management consulting, technology services and outsourcing company. Committed to delivering innovation, Accenture collaborates with its clients to help them become high-performance businesses and governments. With deep industry and business process expertise, broad global resources and a proven track record, Accenture can mobilize the right people, skills, and technologies to help clients improve their performance. With approximately 90,000 people in 48 countries, the company generated net revenues of US$11.8 billion for the fiscal year ended Aug. 31, 2003. Its home page is www.accenture.com.