In fiscal year 2012, the federal government obligated $307 billion to acquire services ranging from the management and operation of government facilities to information technology services, to research and development. Spending on services has increased significantly since fiscal year 2000. The private sector is also increasingly reliant on services, many of which are similar to those that the federal government buys, such as information technology services. Leading companies have been examining ways of managing their services in order to stay competitive, respond to market and stockholder pressures, and deal with economic downturns. The Government Accountability Office (GAO) has reported that leading companies have implemented a strategic approach to improve service acquisition outcomes and identify opportunities for federal agencies, specifically the Department of Defense, to implement improvements across the range of services they purchase. Under the strategic sourcing approach, companies take a hard look at how much they are spending on services and from whom they are buying these services. This book examines and identifies leading company practices for acquiring services and potential opportunities for federal agencies to incorporate these strategic sourcing practices.
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