Procurement Outsourcing on the Rise According to TPI-Sponsored Benchmark Report

-- 40 Percent of Enterprises Expected to Engage in Procurement
Outsourcing in Next Two Years

-- Strategic Value is Driver Behind Procurement Outsourcing

-- Top-Performing Enterprises More Likely to Recognize Strategic
Benefits in Addition to Cost-Savings
HOUSTON--(Business Wire)--TPI, the largest sourcing advisory firm and a unit of Information
Services Group, Inc. (ISG) (AMEX: III.U, III, III.WS), a leader in the
information-based services industry, announced today that it has
sponsored a new benchmark report, "Procurement Outsourcing: A
Strategic Imperative," published by the Aberdeen Group, a leading
provider of fact-based research and market intelligence. This report,
which incorporates the insights of procurement executives from more
than 260 enterprises, is indispensable for organizations looking to
improve the strategic value procurement functions can provide,
reaching far beyond tactical, cost-cutting benefits.

While some hesitancy to adopt procurement outsourcing continues to
exist, stemming from a perceived loss of control, challenges related
to quantifying benefits and/or a belief that procurement is a core
competency, the findings indicate that 40 percent of enterprises are
expected to be engaged in some level of procurement outsourcing in the
next two years. Organizations wishing to expand their global service
delivery capabilities and the process rigor involved in procurement
are some of the reasons for this expected growth. Procurement
outsourcing is also becoming more attractive to enterprises as service
providers can also offer labor arbitrage and core competencies in
transaction and process management capabilities, which often are
difficult and expensive to sustain internally. The potential return on
investment for adopters points to procurement outsourcing increasingly
becoming a viable strategy for operational process improvement.

The report reveals that top-performing enterprises are more likely
to adopt procurement outsourcing. This can be attributed to the fact
that these companies are proficient in measuring the gaps between
their current procurement performance and where they could be through
strategic actions by leveraging scale, analytics, automation and
supply chain expertise. In addition to realizing 28 percent
improvements on their procurement cost savings, these organizations
are gaining key strategic advantages such as streamlining business
processes and improving operational performance overall.

"Benefits gained from procurement outsourcing derive from tactics
well beyond labor arbitrage, and therefore the proposition is often
misunderstood by both procurement and outsourcing practitioners,
resulting in a much slower rate of adoption than other forms of
outsourcing. However, of all forms of outsourcing, procurement
outsourcing, because it can have an impact on 25-50 percent of the
expense base of a company, has the potential to drive some of the most
dramatic bottom-line benefits to corporations," said Bill Huber,
director, TPI. "We supported this project because it provides clarity
on the paradigm shift occurring in procurement outsourcing and a solid
benchmarking process for organizations to use when evaluating their
own procurement models."

"Our research has discovered that top-performing enterprises are
more likely to leverage third-party expertise in the form of
outsourcing," said Bill Browning, research analyst, Aberdeen. "These
companies are realizing strategic benefits such as gaining service
provider and market intelligence, and streamlining operations, while
also delivering cost and process savings."

The report also recommends that enterprises considering
procurement outsourcing should start by carefully evaluating current
process and technology capabilities to establish a baseline and
identify the spectrum of potential benefits through outsourcing. After
that crucial groundwork is laid, organizations can focus on the
strategic advantages that can be gained in addition to the tactical,
cost-cutting results.

To obtain a copy of the report please visit
http://www.tpi.net/pdf/researchreports/Aberdeen_on_Procurement_
Outsourcing_Nov07.pdf.

Visit Bill Huber's blog on Consider the Source
(www.considerthesourceblog.com) for additional thoughts on the
benchmark report and the misperceptions that exist regarding
procurement outsourcing.

About TPI

TPI, a unit of Information Services Group, Inc. (ISG), is the
founder and innovator of the sourcing advisory industry, and the
largest sourcing advisory firm in the world. We are expert at a broad
range of business support functions and related research
methodologies. Utilizing deep functional domain expertise and
extensive practical experience, TPI's accomplished industry experts
collaborate with organizations to help them advance their business
operations through the best combination of outsourcing, offshoring,
shared services and internal service optimization. For additional
information, visit www.tpi.net.

About Information Services Group, Inc.

Information Services Group, Inc. (ISG) was founded in 2006 to
build an industry-leading, high-growth, information-based services
company by acquiring and growing businesses in advisory, data,
business and media information services. In November 2007, the company
acquired TPI, the largest independent sourcing advisory firm in the
world. Based in Stamford, Conn., ISG has a proven leadership team with
global experience in information-based services and a track record of
creating significant value for shareowners, clients and employees. For
more, visit www.informationsg.com.

TPI
Todd Miller, +1 480-235-7018
todd.miller@tpi.net
or
Peppercom
Laura Bower, +1 212-931-6127
lbower@peppercom.com

Copyright Business Wire 2008