Insight

A high-performing procurement unit is a strategic differentiator in project-based industries characterized by high procurement costs and low profit margins. This is especially true for sectors such as real estate and construction, where the cost of procured goods and services typically comprises between 60 and 80 percent of all costs.

The right placement of people and processes has become a strategic differentiator. Applying a balanced mix of outsourced, offshored, and nearshored business functions can yield significant advantages to a company. In this article we set the fundamentals and present a tool that can be used for identifying the right location mix for your business functions.

We believe that it is just a matter of time until the expertise and capabilities typically held within “traditional” IT departments are fully integrated into the various business functions, leaving IT departments significantly slimmer both in terms of scope and staff in the future. The IT department as we used to know it is probably soon nothing but a memory. Here’s why…