E-procurement grows in India (08th Sep 2006)

More proof of the ever increasing popularity of e-procurement came today from a report detailing its increased uptake in India.The Aberdeen Group revealed in a recently-released survey that performance related to e-procurement implementation was rapidly improving and delivering billions of dollars of savings every year.

A new study from Express Computer, an Indian business weekly, has proved that such results are being replicated in India, as e-procurement enjoys unprecedented growth and usage in the sub-continent.

In 2003, only eight companies used e-procurement systems to help performance in their buying divisions. Out of the total spent on procurement, only 20 per cent was filtered through an e-procurement process, on average. The total number of transactions processed through buying software was 564 and the combined value of these transactions was $447 million.

By 2004 the number of organisations using e-procurement had risen to 33, with the number of transactions processed leaping up to 3,746. The latest figures, for 2005 to 2006, show that a total of 77 organisations employ e-procurement systems.

While eight of these are departments, five are universities. Another 13 are public service undertakings and 51 are municipalities. Approximately 90 per cent of their total procurement spend is now managed by e-procurement solutions, resulting in a total of 7,931 transactions processed through purchasing software last year. The value of these transactions stands at $3.74 billion.