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IBM/Georgia Center for Nonprofits Case Study: A New Customer Segment Embraces Procurement Outsourcing

Published by: IDC

Published: Aug. 29, 2006 - 11 Pages


Table of Contents


Table of Contents
IDC Opinion
In This Buyer Case Study
Situation Overview
Market Context: The Growing Acceptance of Procurement Outsourcing
Organization Overview
Challenges and Solution
Procurement Challenges
Finding a New Purchasing Model
Launching a Pilot
Engagement Scope and Business Solution
Results
Future Vision for the IBM/GCN Relationship
Building the Foundation for Comprehensive Procurement BPO
Figure: Evolving Procurement Management Models
Essential GuidAnce
LEARn More
Related Research

Abstract

This IDC Buyer Case Study discusses Georgia Center for Nonprofits' (GCN's) agreement with IBM to develop a procurement shared services and technology platform for improved sourcing and reduced procurement costs. This document provides background on GCN and its role within the nonprofit sector in Georgia, the organizational imperatives that led it to consider procurement outsourcing, and the decision-making process for this engagement.

The document also provides insight into the implementation and progress on the engagement thus far and GCN's future plans and vision. The study is based on an in-depth interview conducted by IDC in March 2006 with GCN CEO Karen Beavor. Beavor conceived the idea of a "nonprofit marketplace," essentially a shared-service platform for nonprofits to gain access to procurement competencies, scale, and technologies. Beavor has been responsible for initiating, designing, and executing this program in partnership with IBM.

Finally, this document provides IDC's analysis of the implications of this deal for the procurement business process outsourcing (BPO) marketplace. For end users of BPO, particularly those from nontraditional quarters such as nonprofit and the midmarket, IDC offers some key pieces of advice in terms of drawing lessons from this engagement as well as guidelines for evaluating the applicability of procurement BPO. There is also essential guidance for vendors seeking to enter untapped segments of the procurement BPO services market.



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