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If there’s one thing most business owners know — regardless of the business size or the industry — is that procurement is far more than just “buying stuff.” If anything, it serves as a backbone and strategic function for businesses as it directly impacts the organization’s bottom line, supply chain, and ultimately, overall advantage in the market.
The next thing that most business owners know: managing procurement functions can be complex, time-consuming, and expensive. It’s one of those core business functions that you cannot compromise on, even though you are fully aware that having an in-house procurement team comes at a great cost.
Now, that is where procurement outsourcing comes in.
In the past years, more and more companies in the US (as well as Australia and Europe) have turned to outsourcing procurement processes to specialized providers. The solution rose to fame for its impact in streamlining purchasing, ensuring supplier compliances, and empowering businesses with strategic sourcing expertise.
And yes, as outsourcing usually goes, procurement outsourcing allows business to access all of these while reducing operational costs. As a result, the global procurement outsourcing market, though a relatively new niche, is now valued at almost $6.5 billion.
The Philippines, known for its reputation in BPO, has naturally (and quite quickly) emerged as a global hub for procurement outsourcing. Over the years, the country has become a top choice for American, Australian, and European business across industries like retail, manufacturing, tech, and healthcare for procurement outsourcing services.
So, in this blog, we’ll cover the essentials of outsourcing, the top procurement outsourcing companies that your business can partner with in the Philippines, as well as the ways to find the right procurement outsourcing provider that will meet your business’ unique needs.
Read on to learn more.
What is procurement outsourcing?
First things first: what exactly is procurement outsourcing? Procurement outsourcing is the practice of delegating all or part of a company’s procurement activities to a third-party service provider. This way, instead of managing purchasing in-house, businesses leverage external procurement experts, whether domestically or offshore, to handle one or all procurement functions.
By working with procurement outsourcing providers, organizations can focus on core operations while ensuring that procurement is still handled efficiently and cost-effectively.
Some of the most commonly outsourced procurement roles are:
1. Procurement Specialist
An Outsourced Procurement Specialist is responsible for finding reliable suppliers to ensure timely purchasing of goods and services. They typically manage sourcing, negotiate contracts, and oversee purchasing activities to help businesses minimize costs while maintaining quality and compliance for the business.
2. Vendor Management Specialist
Offshore Vendor Management Specialists build and maintain strong vendor and supplier relationships by negotiating contracts, monitoring performance, and ensuring compliance with quality standards. By outsourcing this function, you can reduce procurement risks, improve supplier reliability, and strengthen long-term partnerships that support business growth.
3. Supply Chain Specialist
With a Supply Chain Specialist from a dependable procurement outsourcing provider, you get an expert who will analyze and optimize procurement, production, and distribution processes. Using data-driven insights, they forecast demands to enhance overall efficiency and help significantly reduce operational costs.
4. Inventory Controller
Outsourced Inventory Controllers ensure smooth operations by managing stock levels and preventing shortages or excess inventory. They monitor inventory data, identify discrepancies, and optimize replenishment strategies. Companies that outsource this function usually benefit from cut storage costs, reduced losses, and a well-balanced product flow.
5. Logistics Coordinator
Businesses also hire Logistics Coordinators through procurement outsourcing companies to oversee the movement of goods from suppliers to customers, ensuring deliveries are timely, cost-effective, and compliant with shipping regulations. They handle documentation, schedules, and communication with carriers and vendors.
Depending on your business needs, you can outsource one or all of these functions to the Philippines. Of course, there are more supply chain and procurement functions beyond what we have enumerated here that you can outsource. In fact, you can build an entire procurement team offshore with the right outsourcing partner (but more on that later!).
For now, let us address one of the bigger questions: why do so many companies choose to outsource procurement activities in the first place? Surely, knowing the core drivers behind this decision will explain why outsourcing has become a trusted strategy for businesses of all sizes.
Why do US businesses outsource procurement activities?
Over the years, organizations across industries are realizing that handling procurement in-house can be time-consuming, resource-heavy, and difficult to scale. So, the rather short answer to this is: with outsourced procurement, businesses gain access to skilled professionals and proven processes without having to build everything internally.
But let’s break this down further into the three key benefits that businesses are looking for as they opt for procurement outsourcing services:
- Cost Reduction
One of the most obvious reasons is, as is the case for the majority of business decisions, cutting procurement costs. Outsourcing procurement functions eliminates the overhead of maintaining large in-house procurement teams while also giving businesses access to competitive supplier markets. This allows companies to achieve better pricing and stronger negotiating power.
- Scalability and Flexibility
As markets shift and demand fluctuates, companies need procurement functions that can scale up or down without disruption. Outsourcing providers offer that flexibility, helping businesses adapt quickly to changing needs without increasing overhead. Without having to worry about this, businesses can effectively focus on core functions, rest assured that all supply chain and procurement tasks are handled.
- Risk Mitigation
One thing that outsourcing does is give businesses access to specialized expertise and industry best practices — an advantage that protects businesses from various risks. From regulatory compliance to supplier reliability, procurement carries inherent risks. Outsourcing providers have systems, experience, and networks that reduce these risks and ensure greater stability in supply chain management.
Of course, to leverage these benefits, it’s crucial to find the right outsourcing provider that specializes in supply chain and procurement. Thankfully, there are a number of companies in the Philippines that you can choose from, depending on your specific requirements.
Top 10 Procurement Outsourcing Companies in the Philippines
To help you find the best fit for your business, we’ve rounded up the best procurement outsourcing companies in the Philippines. These providers stand out for their track record, scalability, and ability to deliver end-to-end procurement solutions.
1. KDCI Outsourcing
KDCI Outsourcing is a leading Philippine-based outsourcing provider specializing in procurement and supply chain roles. KDCI empowers businesses to build procurement teams with proven expertise in supplier management, spend analysis, order processing, and contract management, helping businesses streamline purchasing operations while cutting costs.
Known for its highly skilled teams, flexible engagement models, and focus on building dedicated offshore procurement functions, KDCI is trusted by global clients across industries like retail, manufacturing, and tech.
2. Accenture
Accenture is one of the largest BPO providers in the country, with a strong reputation for end-to-end business solutions. Its procurement solutions cover strategic sourcing, contract management, and spend optimization, supported by advanced digital tools and automation. Accenture’s scale, global expertise, and strong presence across the Philippines make it a preferred partner for multinational corporations.
3. Concentrix
Concentrix is widely known for customer experience management but also provides robust procurement and supply chain support as part of their broader suite of solutions. Through process optimization, it helps clients manage supplier relationships, handle purchasing transactions, and improve overall supply chain visibility. Concentrix’s global network ensures best practices are integrated into its Philippine operations.
4. Cloudstaff
Cloudstaff is another Philippine-based outsourcing company known for providing highly customized back-office and support solutions, including procurement outsourcing. Its services cover tasks such as vendor management, purchase order processing, and spend monitoring. With a focus on scalability and technology-driven processes, Cloudstaff helps clients streamline procurement operations while maintaining transparency and efficiency.
5. TaskUs
TaskUs is a fast-growing outsourcing company that emphasizes agility, digital-first solutions, and employee experience. In procurement outsourcing, it provides support for supplier management, contract administration, and spend reporting. TaskUs is especially popular with technology and e-commerce firms seeking flexible, scalable procurement support.
6. IBM Business Services
IBM brings advanced technology to procurement outsourcing through its global business services arm. In the Philippines, it delivers services like category management, procurement analytics, procurement consulting services, and supplier relationship management. IBM’s integration of AI and cognitive tools helps clients achieve significant cost savings and process improvements.
7. Foundever
Foundever is recognized for its expertise in business process outsourcing and offers procurement services as part of its back-office support portfolio. It assists clients with purchase order processing, supplier onboarding, and compliance monitoring through their vendor portal. Foundever’s key strength lies in combining process efficiency with strong customer service culture.
8. Infosys BPM
Infosys is a global leader in business process management, with a strong presence in the Philippines. Its procurement outsourcing solutions — often advertised as a one-stop for optimizing procurement operations — focus on strategic sourcing, spend analysis, and process automation. Infosys is especially valued by clients looking to integrate digital procurement platforms with outsourced teams.
9. Wipro
Wipro is another global outsourcing powerhouse with a Philippine presence. The company offers comprehensive procurement services, from vendor negotiations to procurement analytics. Its expertise in technology-driven solutions ensures that clients benefit from streamlined workflows and improved procurement visibility.
10. Genpact Philippines
Genpact combines process excellence with digital transformation in its procurement outsourcing services. Philippine-based teams support global clients with supplier management, contract lifecycle management, and spend optimization. Genpact’s proven track record across industries makes it one of the most reliable choices for strategic sourcing and procurement services in the region.
With these ten leading procurement outsourcing companies in the Philippines, businesses have a wide range of capable partners to choose from. So, the real challenge is determining which provider is the best fit for your unique needs.
How can you choose a procurement outsourcing partner?
With so many providers to choose from, the challenge isn’t just whether to outsource, it’s who to outsource to. Not all procurement outsourcing companies are created equal, and your choice of provider will directly affect your business’ long-term growth.
So, to help you make a well-informed choice, we have here an 8-point checklist of factors to consider before partnering with a procurement outsourcing company.
Expertise in Procurement Functions
Does the provider offer the specific services you need, such as supplier management, spend analysis, or contract administration?
Industry Experience
Do they have proven experience supporting businesses in your sector (e.g., retail, manufacturing, technology)?
Scalability
Can the company quickly scale your procurement team up or down based on seasonal demand or market changes?
Tech and Tools
Do they use advanced procurement platforms and analytics tools to ensure accuracy and efficiency?
Cost Transparency
Is their pricing model clear and competitive, with no hidden fees?
Compliance
Do they follow global standards and local regulations to safeguard your business from risks?
Cultural Fit
Will their team integrate seamlessly with yours, both in terms of collaboration and work culture?
Track Record
Do they have strong client testimonials, case studies, or success stories that prove reliability?
By weighing these 8 factors carefully, you can identify which provider will successfully meet your procurement needs as well as support your overall goals as a business and as a team, today and long into the future.
Ready for a procurement transformation?
Take the first step by asking KDCI Outsourcing about our procurement outsourcing services.
At KDCI Outsourcing, we specialize in building dedicated procurement and supply chain teams tailored to your business requirements. Whether you need an outsourced Procurement Specialist or a dedicated procurement team offshore, we are here to empower your business with the best people.
With a client-focused approach and a track record of helping businesses scale sustainably, we’re here to support your team with procurement services, so you can improve your procurement strategy and focus on the things that matter the most.
Contact us today. We’d love to chat about your procurement and supply chain needs.
