Kursverdoppelung bei Actua Corporation (vorm. Internet Capital)

From the last quarterly report:

Turning slide 9, I'll start with service provider, ICG Commerce, who continued to make great progress in 2006 and is well positioned for a strong 2007.

In the fourth quarter, the company had a number of important customer signings including Microsoft, Global Crossing and Kimberly Clark. These contracts are significant multiyear and global in scope. Most notably, the Kimberly Clark deal is a five-year multimillion dollar agreement and represents ICGC's largest procurement BPO agreement in its history.

ICG Commerce has selected over some of the largest and most well-known BPO providers in the market. For the year, the company had revenue growth in excess of 30% and was EBITDA positive. Finally, and probably most importantly, contracted year-end backlog increased more than 83% to $114 million. We believe that this momentum and a strong pipeline entering 2007, positions it well for a strategic market leadership.


 

nach meiner Auffassung wieder Kursmanipulation durch den Skontrenführer in Frankfurt, der offensichtlich wieder Handel in Frankfurt verhindern will. Der verkauft Euch nämlich für 9,10 Euro nichts und die von ihm auf der anderen Seite gesetzten 8,95 sind meines Erachthens blanke Kursmanipulation - und die Wertpapierüberwachungsstelle des Bafin schläft dazu. Realistisch ist die Spanne von Schwarz und Lang von 9,08 bis 9,39.


 

denn der Shortsquezze in Raten wird sich fortsetzen, wie der enorme Anstieg des Shortselling nach den eben veröffenlichten Zahlen zeigt:

Srong increase of shorting = Buy as you can  (Not rated)      12 minutes ago     February 2007
Short
Interest Percent
Change Average Daily
Share Volume Days to
Cover
ICGE Internet Capital Group, Inc. - Common Stock 4,482,584 23.16 330,386 13.57


Sentiment : Strong Buy

Nicht enthalten sind in diesen Zahlen die leer verkauften Aktien, bei denen nackt geshortet wurde. Auf dem Weg zu $15 bzw. $20 sollte man so eine fantastische Gelegenheit wie eben zum Einstieg nutzen.  

Re: Srong increase of shorting = Buy as you can  (Not rated)      53 minutes ago     That was the highest shortselling in the history of Internet Capital = 11,5% of the outstanding shares. Not part of these numbers are not legal naked shorting.


And additonal we have 71,5% institutional ownership. The result will be: The shortsquezze in steps will continue and will win momentum.

Holdings Summary

ICGE
Internet Capital Group, Inc. NASDAQ-GM


Institutional Holdings Description | Hide Summary



Company Details
Total Shares Out Standing (millions): 39

Market Capitalization ($ millions): $444

Institutional Ownership: 71.5%

Price (as of 2/27/2007) 11.37


Ownership Analysis # Of Holders Shares
Total Shares Held: 101 27,921,978

New Positions: 10 1,785,635

Increased Positions: 37 4,802,799

Decreased Positions: 39 3,845,883

Holders With Activity: 76 8,648,682

Sold Out Positions: 15 1,734,439



Click on the column header links to resort ascending () or descending ().


Owner Name
Select a name below for more information. Date Shares Held Change
(Shares) % Change
(Shares) Value
($1000)
GENDELL JEFFREY L 12/31/2006 3,262,780 0 0.00% $37,098

DIMENSIONAL FUND ADV... 12/31/2006 3,112,704 492,549 18.80% $35,391

CAPITAL RESEARCH & M... 12/31/2006 3,075,000 275,000 9.82% $34,963

SCHNEIDER CAPITAL MA... 12/31/2006 1,689,467 (10,125) (0.60%) $19,209

BARCLAYS GLOBAL INVE... 12/31/2006 1,634,229 167,653 11.43% $18,

Someone of you ask for the dip of yesterday? That was only selling of BIG SHORT and his friends by low volume. My advice: Buy the dip on the way to $15 and $20.

 

bekommt jetzt eine zweite Chance, wenn es auch nicht mehr unbedingt 6 Dollar oder weniger sind - aber bei meinem vorläufigen Zielkurs von 26 Dollar hätte man immer noch mehr als verdopppelt, wenn man jetzt kauft.

I believe you are right, when you right: "It is a lot harder to shakeout mutual funds from a stock like this." But BIG SHORT startet a trial without any success yesterday. All sells came und come from BIG SHORT and nobody follows BIG SHORT, because the owners - 71.5% institutionals and an additonal percentages of managmenent - is able, to understand the excellent fundamentals of this share: No debt, 170 million in cash and marketable securities and proportional revenues of 150 million in 2007 by the private held companies (multiple of competitors are in the average between 5 and 6) - and that all by a market-cap of 440 million today. Fair value is about one billion.

 

da hat der Procedo recht. Nicht recht hat er, dass der gestern irgendwann etwas genützt haben könnte, da gestern die Umsätze sehr dunn waren - und wohl auch nur durch Verkäufe von BIG SHORT und sehr viel anders war das heute auch noch. Als Fazit bleibt, dass BIG SHORT and his friends die shortselling positions, die im Feburar dieses Jahr noch nie so hoch waren wie heute, seine Leerverkäufe dramatisch erhöht hat. Der Shortsquezze kommt also - meines Erachtens realtiv rasch.

#10749 von procedo    28.02.07 08:26:03    Beitrag Nr.: 28.016.940
Dieses Posting:   versenden  |  melden  |  drucken  |  Antwort schreiben    INTERNET CAP. GRP
 



Ei der Potz!!!

Snaggy scheint wirklich recht zu haben mit seinem BigShort, der sich immer weiter in die Scheisse reitet....

Na, vielleicht hat er ja gestern seine Chancen genutzt.

Danke, blb. Gestern war für mich in der Tat ein Superbörsentag.

Grüße von
procedo

 

Flankenking look only at fundamentals, for example: debt-free of Internet Capital, cash and marketable securities of 170 million and proportional revenues of the private held companies in 2007 between 150 and 160 million.

If we subtract the 170 million from 430 million market-cap of today, we have only 260 million for proportional revenues between 150 and 160 million - that are 1.7-times-revenues. When we compare the revenues of the private held companies of Internet Capital with revenues of competitors with qualities of the private held companies of Internet Capital, we have a gigantic undervalue. Competitors in the average have 5- or 6-times-revenues. That means we have an undervalue of about 4-times-revenus = about 600 million = about $15/share. If we add the $15 to the price of today, we have $26/share - the goal for the next 12 months.

I believe, the 71.5 institutionals (best of best of the financial community) have the same look like Flankenking. Only one or two hedge are on the other side and lost money in the three year and will loose additional means in the not-too-distant future.
 

setzen und trotzdem große Chancen haben - und damit eine der wenigen Eier legenden Wollmilchsauen finden.

Over debt free and future-strategies  (Not rated)       3-Mar-07 05:28 am     from the last quarterly report, which show us, that Internet Capital is now a very conserative long-term-investment. That is an important reason, why every dip is a good occassion to buy.


Joseph Besecker - Emerald Asset Management

Couple of quick questions. Now, that you are debt-free, and you’ve removed that issue from the balance sheet, is there anything that you plan to do differently that you couldn’t do before?

Walter Buckley

I think, it feels good to be debt-free, and I think we felt that purchase of the bonds was a good outcome, overall. And that said, as we think about now having a very, very solid balance sheet and strong capital base, the four avenues we've been highlighting, deploying capital to existing companies whether they are for working capital or for M&A opportunities, number one. Number two, making new acquisitions; number three, improving our balance sheet, which we've certainly done over last two years, buying back $50 million of debt. And now number four, looking at either stock buybacks or distribution. The fourth one now really I think is on the table, as we really don’t have any restrictions and certainly will be a key factor in how we look at and analyze capital deployment. And so, I think that’s there is a change from our perspective.

Joseph Besecker - Emerald Asset Management

It certainly seems like there is a lot, and you've stated, there is a lot of opportunity for value recognition in 2007, and going forward, but with some of the more problem situations, are you planning to? And how do you plan to address those? And are you going to call some things out? How do you deal with the things and how do you plan to deal with things that aren't working all that well?

Walter Buckley

I think there are two things. By and large, I think across the board there is good growth. I think the only company that really didn’t see the growth we'd expect is Marketron. But other than that we are optimistic about the prospects for all remaining companies. And I think we've demonstrated where we see companies that are not taking that leadership position whether it was CreditTrade and merger in Creditex, or couple of years back into Metastorm. We will take companies that aren’t winning and try to find a proper partner for them to create really a leadership position, and we will do what we think makes sense. And if we can't do that, we will sell it.

Joseph Besecker - Emerald Asset Management

Okay.

Walter Buckley

And so really, from our perspective, time is very important, and then making the appropriate determination based on market circumstances.


Sentiment : Strong Buy

 

Libuda hat schon recht, mit dem was er hier tippt !
was da in Frankfurt abgeht, ist schon nicht mehr zu Beschreiben, du mußt bedenken das die Börse selber gelistet ist, wieso sollte man da die Aktien zu grechten Kurs verhelfen ? frag ich dich.
Ich hoffe auf eine Antwort von dir  

wenn ich in Frankfurt investiert bin. Das vor allem mit Aussenseiteraktien wie es ICGE eben eine ist.
Natürlich kann auch ich nichts beweisen, ich sehe nur die täglichen jämmerlichen Null bis Kleinstumsätze die den Kurs tiefhalten.
Ich werde das mit einem Top-Fachmann von Credit-Suisse nächstens einmal besprechen und er soll beurteilen wie vorzugehen ist. Ich als Privatanleger und erst noch aus der Schweiz, habe da einen viel zu kurzen Arm um diese Machenschaften selber zu Stoppen.
Ich bin aber mit den Berichten von Libuda absolut einverstanden. Er hat mir das gute Gefühl das ich bei ICGE habe bestätigt. Wenn man den 3, 4 jährigen Chart ansieht ist es nicht berauschend, aber eben doch gut und selbst der Kurstaucher von letzter Woche ist alles andere als bedenklich.
Sorry, wenn ich nichts gescheiteres dazu sagen kann, aber ich bin zuversichtlich, dass sobald die Kurse in USA (wo ich zur Hauptsache investiert bin) markant steigen, werden die kleinen Scharmützel in Frankfurt von selbst aufhören.
Schöner Sonntag noch
penski  

die Kursbildung in Franfkurt in Frage stellen - nur was der für Internet Capital zuständige Skontrenführer treibt, ist in meinen Augen entweder bodenlose Faulheit, bodenlose Frechheit oder noch etwas Schlimmeres, was nach dem Börsenhandelsgesetz ein Straftatbestand sein könnte. Und die Handelsüberwachungsstelle des Bafin pennt und pennt und .........  

du solltest bedenken, das dieses Spiel nicht nur mit dieser Aktie betrieben wird, es gib viele, viele andere Aktien, die weit unter Ihrem derzeitigem Aktienkurs liegen, sollten diese vielen Aktien, die weit unter dem fairen Preis liegen, zu einem fairen Preis gelistet sein, währen keine Trader da und die Börse in Frankfurt könnte nichts Verdienen, da Die Börse in Frankfurt, ja selber gelistet ist, kann sie es sich nicht leisten, faire Werte zu schaffen.

Das hier geschriebene ist rein, nur meine Meinung, zu dem Thema Skontrenführer.  

In Frankfurt könnt Ihr momentan angeblich für 8,10 Euro kaufen. Wenn der Skontrenführer das zu diesem Kurs nicht ausführt, würde ich ihn verklagen.

Wer 8,02 zu 8,10 stellt, muss das auch ausführen, ansonsten manipuliert er Kurse.

 

denn dahinter stecken meines Erachtens nur Verkaufe des Shortseller, der schon mehr als 10% der ausstehenden Aktien leer verkauft (nicht legales nacktes Shorten nicht mitgerechnet) - und das bei außerdem 71,5% in den Händen von Institutionals. Heute hat er nun offensichtlich eine Gelegenheit gesehen, um andere mit auf den Verkaufszug springen zu lassen - aber es spring offensichtlich keiner mit.

Denn ein Profi gibt auf die nachstehende Verwässerung nichts. Und zwar hat der Board der Direktoren (der ungefährt unserem Aufsichtsrat entspricht) 31.500 Aktien für seine Tätigkeit entahlen. Diese 31.500 von knapp 39 Millionen Aktien entsprechen 0,08%. Sinn und Zweck der Aktion des Shortseller ist es, dem Publikum zu erzählen, dass die 31.500 Aktien eine Ausräuberung der Gesellschaft seien. Meines Erachtens ist das eine normale Gehaltszahlung, die nun eben nicht in bar erfolgt - denn ca. 45.000 Dollar pro Person sind zwar nicht gerade wenig, halten sich aber noch in einem angemessenen Rahmen:

Reaction of market on the salaries for the  (Not rated)      31 minutes ago     the board are nonsense. Members of the board must get a salary - by Internet Capital all together 31,500 shares = 0.08% of the outstanding shares. That emotional nonsense-reaction is a good chance to buy cheap - I had done it today.
INSIDER TRANSACTIONS REPORTED - LAST TWO YEARS
Date Insider Shares Type Transaction Value*
28-Feb-07 DECKER THOMAS A
Director 4,500 Direct Acquisition (Non Open Market) at $0 per share. N/A
28-Feb-07 BERKMAN DAVID J
Director 4,500 Direct Acquisition (Non Open Market) at $0 per share. N/A
28-Feb-07 DOWNES DAVID K
Director 4,500 Direct Acquisition (Non Open Market) at $0 per share. N/A
28-Feb-07 KEITH ROBERT E JR
Director 4,500 Direct Acquisition (Non Open Market) at $0 per share. N/A
28-Feb-07 RINGO PHILIP J
Director 4,500 Direct Acquisition (Non Open Market) at $0 per share. N/A
28-Feb-07 GERRITY THOMAS P
Director 4,500 Direct Acquisition (Non Open Market) at $0 per share. N/A
28-Feb-07 MUSSER WARREN V
Director 4,500 Direct Acquisition (Non Open Market) at $0 per share.

Da genehmigen sich Hedgefund-Manager und Private Equity-Manager ganz andere Summen. Werden solche Emotionen geschürt ist das ein Kaufzeitpunkt vom Feinsten.


 

Verhalten des Skontrenführers in Frankfurt vor, wenn er sich verhält, wie ich Euch das jetzt schildern kann? Von heute morgen bis zu einem Auftrag von mir lag die vom Kursmakler gestellte Kursspanne zwischen 7,90/8,02. Damit signalisierte der Skontrenführer, dass er zu 8,02 zu kaufen gedenke. Daraufhin habe ich eines relativ kleinen Kaufauftrag (ganze 100 Stück) zu 8,02 abgegeben. Nun ratet einmal, was dann passierte? Sekunden später war die Spanne plötzlich 8,00/8,15.

Was ich nicht verstehe, dass das die Handelsüberwachungsstelle des Bafin bei der Frankfurter Wertpapierbörse, die schon x-mal auf diese nach meiner Auffassung krummen Dinger hingewiesen wurde, hier nicht eingegreift und zum Schaden der deutschen Anleger im tiefen Behördenschlaf verharrt.  

kaufen an einer Stelle heißen:

. Liegt nach Eurer Meinung kriminelles   Libuda   06.03.07 15:02  

Verhalten des Skontrenführers in Frankfurt vor, wenn er sich verhält, wie ich Euch das jetzt schildern kann? Von heute morgen bis zu einem Auftrag von mir lag die vom Kursmakler gestellte Kursspanne zwischen 7,90/8,02. Damit signalisierte der Skontrenführer, dass er zu 8,02 zu verkaufen gedenke. Daraufhin habe ich eines relativ kleinen Kaufauftrag (ganze 100 Stück) zu 8,02 abgegeben. Nun ratet einmal, was dann passierte? Sekunden später war die Spanne plötzlich 8,00/8,15.

Was ich nicht verstehe, dass das die Handelsüberwachungsstelle des Bafin bei der Frankfurter Wertpapierbörse, die schon x-mal auf diese nach meiner Auffassung krummen Dinger hingewiesen wurde, hier nicht eingegreift und zum Schaden der deutschen Anleger im tiefen Behördenschlaf verharrt.    Sie nehmen noch nicht an einem Börsenspiel teil!

Steigen Sie jetzt ein!
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ID markieren, ignorieren
Regelverstoß melden  

 

das ist mir auch schon, bei Suess Microtec und bei anderen Aktien Passiert, in dem Moment wo ich die Kauforder abgegeben habe, zu einem Limitpreis, rutschte uhrplötzlich die Aktie nach oben, aber in der gleichen sec., wo ich die Kauforder abgegeben habe, so das ich die Aktie nicht bekam, das hat mich auch schon sehr Stutzig gemacht, nur wusste ich nicht wieso das so kamm, aber langsam schaue ich dahinter.
Viel Lesen macht bekanntlich Schlau.
Sollte es so sein, wie du es hier Beschreibst, finde ich das eine Riesen Sauerei und sowas gehört zur Anzeige gebracht.  

BIG SHORT had forget to read  (Not rated)      6 second(s) ago     to read the following from the transcript of the last quarterly report:

"As the companies grow, we continue to drive progress against the backdrop of the market, a competitive landscape, and potential M&A opportunities. You will see these efforts play out at ICG Commerce and StarCite, Marketron, CreditTrade, Metastorm, and Freeborders. As these companies mature, they evolve into the next phase of the lifecycle.
Capturing value, Blackboard and LinkShare were once in the build mode, but we expect considerable amount of time and energy helping them attain their market leadership positions. Finally, when circumstances dictate, we capture value, through consolidation within ICG, an IPO, or a strategic sale or merger. Today, Blackboard and LinkShare are shining examples of capturing value.
Turning to slide 7, this gives you a sense of how these companies were rewarded respectively. Blackboard went public at close to a three-time trailing revenue multiple, now trades at approximately five-time trailing revenue multiple. LinkShare was sold for $425 million, close to a nine-time trailing revenue multiple.
Mapping out our current Core companies against this lifecycle, Slide 8 illustrates where our companies are currently staged. Some of our more mature companies are applying for capturing value over the next 12 to 24 months. They are proven leaders in their respective markets with healthy revenues and strong margins. ICG Commerce, StarCite, Creditex, Metastorm and Marketron and slightly further out, Freeborders, a company you should pay close attention to.
We believe that from this group, significant value will be created and captured as a number of the companies will liquidate over the next 12 to 24 months


Sentiment : Strong Buy

 

ICGCommerce and Metastorm  (Not rated)       8-Mar-07 10:20 am     ICGCommerce will have revenues in 2007 of about 50 million and Metastorm will have revenues in 2007 of about 50 million. Look at my last postings about the two companies. Every of this two companies have a worth between 200 million and a quarter billion. Internet Capital owns 66% of ICGCommerce and 41% of Metastorm. Together with the cash/marketable securiteis fo 170 million is the worth of two companies = market-cap of today. All other private held companies are free of charge.

 

dauert es möglicherweise wieder Monate bis die 11 USD überwunden sind. Warum reagiert ICGE auf ein "Hüsteln" an der Börse gleich mit einer "Lungenentzündung"? Nun, abwarten und im warsten Sinne des Wortes, Tee trinken (gegen die Lungenentzündung).  

dass es mit einem Anstieg sehr schnell gehen kann. Das momentane Dip ist meines Erachtens vor allem durch zusätzliches Shortselling ausgelöst worden, das zuletzt (letzte vorliegende Daten vom 15.2.07) auf dem Rekordniveau von 12% war - und das bei zusätzlich 71.5% Anteil von Institutionals. Ich vermute hinter den zusätzlichen Leerverkäufen nichts anderes als den verzweifelten Versuch des Shortsellers eine Lawine loszutreten, damit der doch mit einem blauen Auge beim Eindecken davonkommt.

Das wird aber meines Erachtens nicht funktioniernen, da auf der Gegenseite keine zittrigen privaten Hände sind. Auch die Hoffnung, dass ein engagierter Hedge verkaufen muss, scheint sich nach den Umsätzen nach nicht zu bestätigen. Und so werden die Fundamentals Beachtung finden. Und hinzu kommt, dass auch das Management nicht mehr so offensichtlich mauern kann, seit der Hedge-Fund Mason Capital ihm die gelbe Karte gezeigt hat, zumindest das folgende aus dem Conference Call deutet darauf hin:



"Capturing value, Blackboard and LinkShare were once in the build mode, but we expect considerable amount of time and energy helping them attain their market leadership positions. Finally, when circumstances dictate, we capture value, through consolidation within ICG, an IPO, or a strategic sale or merger. Today, Blackboard and LinkShare are shining examples of capturing value.

Turning to slide 7, this gives you a sense of how these companies were rewarded respectively. Blackboard went public at close to a three-time trailing revenue multiple, now trades at approximately five-time trailing revenue multiple. LinkShare was sold for $425 million, close to a nine-time trailing revenue multiple."


 

Ich glaube, dass die Mutitples von Blackboard und Linkshare representativ sind, zumindest für die fünf großen Private Held von Internet Capital. Der Durchschnitt von Linkshare und Blackboard ist in etwa ein Kurs-Umsatz-Verhältnis von 6,5.

Meine Schätzungen:

ICGCommerce = 4.5-times-revenues (revenues in 07 = 50 million, ownership = 66%)

Freeborders = 12-times-revenues (revenues in 07 = 50 million, ownership = 34%)

Starcite = 8-times-revenus (revenues in 07 = 60 million, ownership = 26%)

Creditec = 4.5-times-revenues (revenues in 07 = 180 million, ownerhship = 15%)

Metastorm = 4.5-times-revenues (revenues in 07 = 50 million, ownership = 41%)



 

Growth - but patience need in the market of ICGCommerce  (Not rated)       8-Mar-07 10:11 am     FAO Today: January 2007


Procurement BPO: A Look at Factors Impeding the Growth of this “BPO Baby”

Provider capabilities and client clarity all affect how the indirect procurement market is developing.

By Rachael Stormonth

The market is waking up to the notion of indirect procurement being one of the “new babies” of BPO. The number of procurement BPO contract signings was higher in 2006 than in 2005, and the renewal of major longstanding contracts such as Lucent’s with Ariba sends out a positive signal. However, it will take some time for this to be a complete success story.

The number of new contract signings was not a massive increase and a less-than-happy client in another major outsourcing contract is not good news. Also, a few contract negotiations have broken down; sometimes, the service provider has walked away (sensibly) because the required business benefits within scope are not achievable. NelsonHall does not expect a major ramp up until 2008 when, hopefully, some of the following factors impeding market growth will have been addressed:


• Vendor propositions not fully aligned with buy-side pain points. NelsonHall global buy-side research shows a slight mismatch between some provider propositions and buy-side pain points. Organizations typically don’t see maverick spend as an issue and also believe they have achieved favorable supplier discounts in most commodities.

• Some service providers regard procurement as an adjunct to accounts payable. But organizations are looking for access to expertise and best practice. Providers need to fully appreciate the deep market and procurement process knowledge across a wide range of categories, sectors, and organization types, and they need to understand the change management needed.


• Sub-optimal contracts being signed. The greatest benefits will be seen in a full source-to-pay contract, but there are very few of these contracts in the market. Most new signings are still source-to-contract or procure-to-pay awards. This is partly due to supplier capability; in particular providers with an F&A background may have limited sourcing expertise. IBM is a major exception to this.


• Too strong a focus on technology. It is not always necessary to deploy a heavy new system to transform the procurement function when perhaps putting in a procurement portal and an analytics tool on top of the client’s ERP backbone can suffice.

 

Re: Growth - but patience need in the market of ICGCommerce  (Not rated)       8-Mar-07 10:13 am     Continue of my last posting:
• Immaturity of indirect procurement shared services/fragmented buying. The majority of organizations perceive that they need to have developed internal shared-services centers to manage the sourcing and procurement of indirect goods and services prior to outsourcing, but most have not reached this level of maturity.

• Contract negotiations: recognize the issues, focus on the outcomes, consider alternative solutions.


Contract negotiations for procurement BPO can stall. One truism is that the organization should be clear to all the internal issues that have contributed to its decision to outsource. Areas where contract negotiations can be protracted include savings definition, SLAs, and gainshare arrangements. Organizations should be wary of a service provider claiming to be able to deliver substantial savings before it has done adequate due diligence. Vendors who “over promise” tend to “under deliver.” Another truism is that the level of savings ultimately achieved from outsourcing will always be different from what had been targeted.


While organizations should clearly specify what is in-scope, they should also be willing to listen to a service provider’s proposals for offering a service that might better help achieve the goals of the contract. Some of the factors listed above have been seen in other forms of BPO during the early adopter phase; none of them are insurmountable.


That the indirect procurement BPO market will continue to grow is without doubt, but for it to enter the BPO mainstream, vendors need to possess both a clear appreciation of organizations’ priorities in seeking to improve their indirect procurement operations and capabilities to support this.


It remains to be seen whether organizations will opt more for standalone procurement BPO or a wider back-office outsource. Although 50 percent of organizations say they are highly willing to outsource indirect procurement to a vendor currently providing them with F&A or HRO services, right now the tendency is to separate F&A BPO from procurement BPO awards. A recent example is the separate contracts signed by Kimberly-Clark with Genpact (F&A) and with ICG Commerce (procurement).

 

Re: Growth - but patience need in the market of ICGCommerce  (Not rated)       9-Mar-07 02:21 am     Procurement Outsourcing Market Grows to US$40 Billion in Managed Spend in 2006, Says Everest Research Institute


Everest Research Institute - December 2, 2006

Procurement Outsourcing (PO), a relatively nascent market in the BPO world, is poised for a landmark year in 2007, according to Everest Research Institute. PO expenditure has grown at over 35 percent in 2006 and represents an annual managed spend of nearly US$40 billion. Plus, PO buyers are realizing significant benefits. Phil Fersht, vice president of the BPO Research practice at Everest, offers Tekrati readers a preview of the indepth PO industry research his team will debut during a free webinar on December 13, 2006.



"We are very upbeat at Everest regarding the future potential of Procurement Outsourcing after some early challenges in this nascent market. Contract activity in PO this year has been much more dynamic," said Fersht. He noted that existing PO buyers have realized sourcing related savings of 5-20% on each category head, which translates into a significant bottom-line impact.

The Research Institute’s PO analyst team has been conducting major ongoing research of the service providers and buyers of PO offerings across multi-process procurement domains. The webinar will reveal preliminary findings from a forthcoming 2006-2007 PO report, including trends and dynamics from over 50 multi-process PO contracts. A small sampling of research highlights includes:

Verticals: Manufacturing, Consumer Products, and Financial Services have led the charge over the last 2 years
Geographies: Since 2005, Europe has witnessed substantial PO activity
Suppliers: Accenture, IBM, ICG Commerce, and Ariba are the leading suppliers in terms of PO market share
Spend categories: Based on actual PO deals tracked, nearly 65-80% of this indirect spend can be outsourced to an outsourcing supplier. This includes most indirect categories like offices supplies, MRO, advertising and promotion, IT, facilities, professional services, and HR services.

While labor arbitrage is the key lever that suppliers utilize in FAO, in PO the most important value creation lever is people expertise. "By asking an outsourcing provider to manage indirect spend, buyers gain access to category experts with sourcing expertise across indirect categories," Fersht explained. "While category expertise and market know-how for indirect categories is typically low for most buyers, we find that a top-notch PO provider would have nearly 16 category experts with six-plus-years experience on an average for each broad category head. (The average external spend managed for each category is around US$560 million). This kind of expertise is clearly something that an individual buyer cannot afford, and can only be gained through a Procurement Sourcing engagement with a supplier."


Sentiment : Strong Buy