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New Study Says Market Growth Won’t Translate into Bigger Budgets for Procurement Professionals

New Study Says Market Growth Won't Translate into Bigger Budgets for Procurement Professionals
Image via Flickr by Victor1558

The Hackett Group, a global strategic business advisory and operations improvement firm, recently released a new study, entitled Borderless Business Environment – Driving New Pressure, Changing Priority for Procurement Leaders. In this study, the group reports that CEOs are challenged to do more with fewer resources continuing through 2013.

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While business revenue is growing, hiring new personnel and investing in other new resources to get more done isn’t likely to happen. Procurement specialists are expected to see a 6.5 percent growth this year, while experiencing resources budgets to decline by .4 percent and staff levels to go down by .5 percent.

New priorities identified by the report include a focus on accelerating the growth of revenues, enhancing the agility of operations, and improving current levels of customer service. Other areas where experts expect to see a high level of focus is in innovations of new and improved products and services.

The study predicts that new strategies will allow companies to increase their profits even when revenues are low. There is further pressure on CEOs to use the massive amounts of data now at their disposal to produce better insights and intelligence leading to more growth and, inevitably, higher profits. Other pressures on procurement professionals include better standardization practices and more globalization.

A procurement advisory principal for the Hackett Group, Chris Sawchuk, said innovations in products and service is what companies will turn to promote growth. Procurement specialists are expected to add this value, even when budgets for new technology and more workers are on the decrease.

In related news, many companies are failing to see how increasing IT budgets is going to help them over the long haul. Some high level managers are not convinced that increasing the budgets for their IT departments is the best way to invest in the futures of their companies. Clearly, the economic situation has not yet seen a full improvement from the recession. [/show_to]

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