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New eSolutions trigger growth

by Enrique Vich created on 01/06/2012 12:35

The untapped potential

Governments are the largest buyers of private sector services in the EU, with total purchases accounting for nearly 20 percent of the EU’s Gross Domestic Product (GDP). Despite such a significant proportion, considerable administrative hurdles have often hindered communication between the private and public sectors during the tendering and buying phases. The Pan-European Public Procurement Online (PEPPOL) project has overcome a number of these hurdles by directing communication between entities electronically – a process known as eProcurement.

Widespread recognition and usage of such initiatives is key to encouraging Europe’s economic and digital growth. Public entities that have already implemented eProcurement report 5-20 percent savings in their procurement expenditure. With a market estimated to be worth more than €2 trillion per year, a saving of even five percent equates to €100 billion, a figure that could be used to invest in still more diverse areas to facilitate growth.

In recent months, the European Commission has proposed to make eProcurement – which is still only used in 5-10 percent of procurement procedures across the EU – the rule rather than the exception. As Michel Barnier, Commissioner for Internal Market & Services notes, “eProcurement represents a significant untapped potential... It can reduce burdens and costs, increase the participation of SMEs and deliver better quality and lower prices.”

The PEPPOL Conference in Rome and other events of this type, as well as initiatives such as OpenPEPPOL, will thus ensure the engagement of stakeholders, raise awareness, and encourage reuse of the building blocks developed by the LSPs that in turn can lead to sustainable and constructive growth.




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