Public Procurement Sourcing is leading the way

Public Procurement Sourcing is leading the way

It’s funny how cyclical the world is and we’re at a very interesting point in the cycle now.

Traditionally it was believed that public sector was slow boring, low paid but stable and certainly not the place to see innovation.

In the early part of this decade, public workers, witnessing their dynamic success driven and higher paid peers in private sector began to demand some kind of balance. Governments and tax payers began to realize that public services, to operate professionally and efficiently, needed the same kind of people. The bar was raised for entry into public service jobs and wages went up to.

Public sector procurement was amongst the leading example of how to transform a business function in the 21st century. They embraced “e”. eProcurement, eSourcing, eInvoicing, purchasing cards – if you can think of it they did it. “e” stands for everything.

And then along came 2008.  The private sector bubble burst. Sanity arrived in Wall Street and the City of London. Huge bonuses were seen for the first time for what they were and the world changed forever.

We are now left with a situation where the staid, boring public sector has amongst the best technology enabled purchasing functions led by leaders in their field while the private sector is still cling to their core businesses, running them on a shoes string and hoping that the light at the end of the tunnel emerges soon.