Industry Analysis & Industry Trends
The Procurement Outsourcing Services industry has enjoyed buoyant conditions over the five years through 2012-13. Industry revenue is estimated to grow by an annualised 6.9% over the period to reach $1.43 billion. With the industry's markets being highly diversified, it has benefited from the growing number of Australian businesses. These businesses are also increasingly outsourcing their activities, which has supported demand for outsourced procurement services.
An overall increase in business confidence has backed growth in procurement activities and volumes. Some of these activities are outsourced to the industry, benefiting industry 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 $71.50 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