Outsourcing, Procurement, Benchmarking

Procurement benchmarking results available

03 Dec 2005 | (Survey)

Elance, Inc., the leading provider of e-commerce solutions for services, today announced the results of a benchmark survey of Services & Contractor Management trends across Fortune 1000 firms.  The Elance services and contractor management solution is used by over 200,000 employees and 2,600 service providers to automate, streamline and control billions of dollars of purchases annually. 

The survey's key findings are that managing contingent labor and services spending is viewed as "critical" to Fortune 1000 firms, that IT consulting is the major category of external expenditure today, and that management consulting is viewed as the top priority for optimization in 2006.  Additionally, the survey cites compliance with rules and regulations, including Sarbanes-Oxley and labor statutes, and significant cost savings as the main benefits of services purchasing automation.

Highlights of Elance Services & Contractor Management Benchmark Survey include:

-- Managing Services like Contingent Labor, Consulting, Offshore Development and Print is a Key Priority for 2006:

• Services = 80% larger than Indirect Goods in purchasing budget
• 100% say Services Procurement & Management is 'Critical' or 'Important' Initiative for 2006

-- The Key Benefits to Managing Services Spend are Cost-Savings, Compliance and Visibility

• Cost Savings through compliance with contracted rates and terms
• Visibility into services spending
• Cost Savings through maverick spend reduction
• Compliance to Sarbanes-Oxley regulations

-- The Top Services Spend Areas By Volume are Consulting and Contingent Labor
       1. IT Consulting
       2. Contingent Labor
       3. Management Consulting
       4. Offshore Development
       5. Third Party Services/BPO
       6. Print

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-- The Top Priority for 2006 is Management Consulting
       1. Management Consulting
       2. IT Consulting
       3. Market Research

"The shift in focus from contingent labor to broader, consulting based services is an eye-opener, because our leading customers indicate the need for a platform to serve both unique types of services," said Fabio Rosati, president and CEO of Elance, Inc. "Services procurement and contingent labor staffing have emerged as critical competencies for the enterprise as they look to optimize and to outsource key tasks, functions and departmental operations."

Methodology

The Elance Services & Contractor Management Benchmark Survey, conducted in October 2005, represents companies with over $600 Billion in annual revenues and over $40 Billion in services spending across multiple industries including financial services, data services, energy, pharmaceuticals, telecommunications, food & consumer services and conglomerates. Respondents included vice presidents or directors of procurement, C-level executives or vice presidents of business lines or functions including human resources and information technology.

For complete results of Services & Contractor Management Benchmark Survey, visit: Elance

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