Procurement Outsourcing Services in Australia Industry Market Research Report Now Available from IBISWorld

The outsourcing of procurement services is becoming more popular as businesses increasingly outsource their activities as they seek greater efficiency. For this reason, industry research firm IBISWorld has added a report on the Procurement Outsourcing Services industry in Australia to its growing industry report collection.

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IBISWorld Market Research

IBISWorld Market Research

The industry benefits from increased business numbers and confidence

Melbourne, Australia (PRWEB) January 06, 2013

The Procurement Outsourcing Services industry has enjoyed buoyant conditions over the five years through 2012-13. With the industry's markets being highly diversified, it has benefited from the growing number of Australian businesses. These businesses are also increasingly outsourcing their activities, which has supported demand for outsourced procurement services. An overall increase in business confidence has backed growth in procurement activities and volumes. Some of these activities are outsourced to the industry, benefiting industry revenue. According to IBISWorld industry analyst Aries Nuguid, “increases in capital expenditure by businesses' customers on new capacity and processes have also strengthened demand for procurement outsourcing over the past five years”. The greater interconnectedness of business through the internet has made the outsourcing of procurement functions easier.

While conditions have been positive for the industry overall, a dip into negative business confidence due to the global downturn has slowed industry revenue growth over the five years through 2012-13. As companies became less confident in their financial outlook, procurement activity slowed, which hurt demand for industry services. “The poor business confidence also caused a mismatch between capacity in the industry and demand for industry services”, says Nuguid. The capacity and demand mismatch heightened competition between industry operators and pressured operating margins.

The Procurement Outsourcing Services industry is expected to grow by a solid 8.9% in 2012-13. The popularity of outsourcing as Australian businesses strive for greater efficiency is expected to back the rapid growth in industry revenue. An expected large expansion in capital expenditure by the private sector during the year will also support demand for procurement outsourcing services.

An increasing number of businesses outsourcing will support industry growth over the next five years. Business confidence is forecast to increase, which will boost procurement activity, some of which will be outsourced to the industry. Expected increased capital expenditure on new capacity and processes will increase demand for industry services as Australian businesses cope with the rapid capacity expansions.

For more information, visit IBISWorld’s Procurement Outsourcing Services report in Australia industry page.

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IBISWorld industry Report Key Topics

Companies in this industry act as a third party to provide procurement services for clients, including direct and indirect procurement. Procurement outsourcing allows client companies to reduce costs, improve efficiency and enhance performance.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.


Contact

  • Gavin Smith
    IBISWorld
    (310) 490-5973
    Email