The Hackett Group® Finds Major Gains From AI-Driven Procurement Outsourcing Services
Intelligent procurement outsourcing services drive a 46% increase in sourcing efficiency and automation, and a 23% improvement in purchase cost savings and cost avoidance
Procurement organizations are facing enormous internal and external headwinds from increasing workloads, evolving global compliance requirements, governmental policy uncertainty, and increasing expectations from business stakeholders. These forces, coupled with the explosion of new generative and agentic AI solutions, compel procurement executives to take a critical look at their operating model design, strategic partners, and service placement options.
The Procurement Outsourcing Services Digital World Class® Matrix provides an in-depth guide to some of the most notable procurement outsourcing providers, including how the vendor services are aligned to meet the critical needs of procurement, information technology, and global business services leaders. The report evaluated 15 providers for their capabilities and value delivered to clients based on vendor briefings and extensive customer interviews across 16 different criteria.
Capability ratings assess a vendor’s capacity to provide procurement outsourcing services across critical operational areas, including procurement data management, intake management, requisition and purchase order (PO) processing, sourcing execution, and invoice processing. It also includes core service capabilities, including the ability to support global complexity, service breadth, infrastructure, quality and compliance, analytics, and enabling technologies.
Value realization ratings assess a vendor’s impact to key metrics covering transition and migration services, transformation capabilities, automation and efficiency, service experience, service value, and overall satisfaction and business value to the organization.
In this mature but evolving marketplace, adopters of procurement outsourcing services are realizing very tangible benefits across a variety of key metrics. End users report an average 52% improvement in procurement data management automation; a 57% average improvement in intake management, requisition and PO processing efficiency; a 23% average improvement in purchase cost savings and cost avoidance; and an 83% overall satisfaction rating for service experience and value.
Leading procurement outsourcing services expertly handle global complexities, providing a comprehensive range of solutions supported by strong infrastructure and reliable assistance. Their well-established methodologies for quality, risk management, and compliance ensure consistency and efficiency in operations.
They also leverage advanced AI, Gen AI and data intelligence to optimize process performance. They enhance operations through intelligent data cleansing, policy and compliance automation, autonomous orchestration, and digital assistants. Additionally, they provide tools for cycle-time optimization, category management, market intelligence, autonomous sourcing and advanced analytics – including conversational reporting – ensuring efficiency and strategic decision-making.
“The thoughtful integration of procurement outsourcing services into the overall procurement service delivery model provides companies significant flexibility, scalability and rapid adoption of leading-edge, AI-enabled technologies,” said
By using this comprehensive analysis, procurement professionals can make informed outsourcing decisions aligned with their strategic priorities and business value drivers.
Procurement Outsourcing Services Digital World Class® assessments are part of The Hackett Group’s full 59-page report. Digital World Class® assessments should be read in the context of the entire report. Download a complimentary summary of the procurement outsourcing research with registration. Contact us for inquiries about purchasing the full research report.
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