Part II for Performing an Analytical Study on Procurement Outsourcing

An analytical study on procurement outsourcingdoes not simply require you to state the pros and cons for outsourcing a particular activity. You need to go deeper and further than that. You need to start with the beginning, and that is to show how you were able to identify which activities were better off being outsourced.

In most cases, this involves showing the amount of money you spent on different procurement activities in the past three years. You can then show the percentage these expenses represent in the total amount of money that the company shells out each year.

Now, in the event that your study shows that your company is spending an inordinate amount of money on a particular procurement activity, you need to compare it with industry figures first. This is to show that your expenses are indeed beyond what is normal. You must also double check beforehand that the figures do not result from internal fraud.