Industry Analysis & Industry Trends
The Procurement Outsourcing Services industry has enjoyed buoyant conditions over the past five years. Industry revenue is expected to grow at an annualised 10.2% over the period to reach $135.9 million in 2014-15. The industry has benefited from the growing number of Australian businesses, as its markets are highly diversified. These businesses have also been increasingly outsourcing their activities, which has supported demand for outsourced procurement services.
Broadly positive business confidence levels over the period have contributed to growth in procurement activities and volumes. The industry outsources some of these activities, which benefits revenue... purchase to read more
Industry Report - Industry Investment Chapter
Capital intensity in the Procurement Outsourcing Services industry is at a low level. The industry is estimated to spend $52.95 on labour for every $1.00 invested in new capital. The level of capital intensity is low because the firm is highly reliant on skilled employees that have insider knowledge of optimum procurement sources. In addition, the industry has little need to invest in expensive capital such plants, machinery and equipment. Instead, the industry's main capital investments include office furniture and information technology. Capital intensity is estimated to have declined slightly over the past five years. Capital intensity has fallen as the industry's investments in new capital have slowed to address overcapacity in the aftermath of the global downturn... purchase to read more