Why Businesses Are Turning to Outsourced Indirect Procurement — And What They Gain From It
Indirect procurement has a habit of sitting quietly in the background, not overlooked so much as viewed as a component of doing business that can be complex to address and doesn’t impact on your core purpose. It rarely gets the board‑level attention that direct spend commands, yet it touches almost every part of a business — from IT and marketing to facilities, HR services, logistics, and so much more. For many organisations, it’s also where some of the biggest inefficiencies, hidden costs, and operational headaches live.
Recently, a growing number of companies have started to rethink how they how they manage the thousands of products and services that keep their operations running …… and increasingly, they’re choosing to outsource it. Companies of all sizes and across industries are benefitting from
If you’ve ever wondered why outsourced indirect procurement is gaining traction — and what it could mean for your organisation — this is a good place to start.
The Hidden Challenges of Indirect Procurement
Most leaders know indirect procurement can be complex, but few realise just how much value leaks out of it every day. Common challenges that leaders see across their indirect procurement spend include:
Fragmented spend spread across dozens of categories and hundreds of suppliers. This can be challenging to identify due to limited visibility into what’s being bought, by who, and at what cost. Contracts often lapse into uncontrolled spend which remains un-addressed due to resource constraints with procurement teams stretched thin and insufficient subject matter expertise leading to increased maverick spend, where teams buy outside approved channels, sourcing what they believe to be the best solutions. These new unapproved suppliers add compliance and risk exposure, from data security considerations to ESG requirements across the business
We have seen how many organisations underestimate the cumulative impact of these issues. A single missed contract renewal or unmanaged supplier can quietly drain budgets for years. Multiply that impact over hundreds or thousands of suppliers and the scope of the challenge and opportunity becomes clear
Why Outsourcing Is Becoming the Smarter Option
Outsourcing indirect procurement isn’t about handing over control — it’s about gaining capability, speed, insight and clarity. Here’s what businesses typically gain:
Immediate Access to Category Expertise – Indirect procurement covers a huge range of categories. Outsourcing partners bring specialist subject matter expertise and experience of negotiating these markets regularly, giving you an advantage from day one.
Cost Savings and Spend Consolidation – With better data, stronger supplier relationships, and structured sourcing processes, organisations often unlock savings that internal teams simply don’t have the bandwidth to pursue.
Better Compliance and Reduced Risk – From contract management to supplier due diligence, outsourcing introduces governance that many organisations struggle to maintain internally.
Scalable Resources Without Increasing Headcount – Instead of hiring multiple category managers, analysts, and procurement ops staff, outsourcing gives you a ready‑made team that can deploy quickly and efficiently within your business, utilising and improving existing processes and systems
Access to Technology Without Capital Investment – Platforms that support spend analytics, workflow automation, contract and supplier management become part of the service rather than an internal project.
Faster Sourcing and Less Operational Friction
With dedicated teams and proven processes, sourcing cycles shorten and internal teams spend less time firefighting.
Why This Matters Even More in the UK in 2026
The UK market brings its own set of pressures:
- Post‑Brexit supply chain complexity
- High inflation in services and labour markets
- Increasing ESG and social value requirements
- A competitive talent market making procurement expertise expensive
- Regional supplier diversity expectations
For many organisations, outsourcing indirect procurement is becoming a strategic response to these pressures — not just a cost‑saving exercise.
An Outsourced Model That Works
A typical outcome? A UK‑based services organisation recently partnered with EBIT to outsource its indirect procurement. Within the first year, they achieved savings across marketing, HR services, and IT support, while also reducing supplier risk and improving contract governance. Internal teams were freed to focus on strategic initiatives rather than day‑to‑day sourcing.
The Strategic Upside: More Than Just Savings
While cost reduction is often the initial driver, the long‑term benefits run deeper:
- Stronger supplier relationships
- Better alignment between procurement and business goals
- Improved data‑driven decision‑making
- Greater resilience in the face of market volatility
- A more mature procurement function without the overhead
Indirect procurement stops being a cost centre and becomes a strategic enabler, driving value throughout the supply chain.
Indirect procurement may not always be glamorous, but it’s one of the most powerful levers for improving operational efficiency and financial performance. For businesses navigating economic uncertainty, regulatory pressure, and talent shortages, outsourcing offers a way to regain control, unlock savings, and build a more resilient organisation.
Work with us?
Are you looking to drive value to your business? It may be to offset increasing costs elsewhere or to free up time and budget to focus on your strategic goals. If you recognise that improved procurement practices and performance can be a driver to this, we would love to talk with you, understand the challenges you face and the opportunities these bring.
We’re proud of the clients we work with and the projects we have completed. The savings and service improvements we have delivered have helped many companies add value to their bottom line. Our average ROI remains 5:1 across our client engagements. If you want to find out how we can make a difference to your business start the conversation.