The value proposition of Procurement Outsourcing (PO) is centered around spend-related savings and not labor arbitrage. Consequently, the degree of offshoring in PO contracts is only around 25% - less than half of the typical offshore component in other outsourcing markets like Finance & Accounting Outsourcing (FAO). However, more recently we are witnessing increasing levels of offshoring in PO contracts, as global sourcing has the potential to become a significant enabler for outsourcing procurement by providing additional levers for managing the operational costs. This report examines the key trends emerging in the offshore PO market.