Following the example of public companies, government-owned companies are following suit in the area of MRO outsourcing over the Internet. According to an industry source on the 17th, public institutions such as pension management and public banking firms have assigned purchase and management of MRO to special private companies. In the latter half of this year, MRO supply of the Public Procurement Service will be designated to a private company.

MRO is a business where one company acts as an agent for another company in the purchase and management of all types of consumable resources, such as furniture, electronics and office items, for example. MRO outsourcing can allow a company to save money by an average of 10~20%.

As all transactions are open, work efficiency and transparency are increased as well. MRO outsourcing is spreading not only to the manufacturing businesses but also to financial and retail businesses as well. Accordingly, the total value of MRO transactions in Korea has increased from 380 billion won in 2001 to 3644 billion won in 2005, an increase of almost 1000%.

Ç MRO outsourcing is expanding to all industries

Domestic online MRO market is hotly contested by iMarketKorea, Serveone and ENtoB. iMarketKorea passed 2 trillion won in transactions in 2004, a first among e-commerce companies in Korea . iMarketKorea is currently an agent for 260 firms, including electric, electronics, financial and chemical companies. Major clients include Ssangyong Motor Company, Dongkuk Steel, Samsung Tesco and Aekyung. iMarketKorea has also pioneered the foreign market as well, with exports of MRO products to 12 countries including China .

Ç Public Institutions participate in MRO outsourcing

Propelled by a government that is promoting revolutionary changes in official business, public institutions and government-owned companies are participating in MRO outsourcing to save costs as well as increasing work efficiency. Man-Young Hyun, CEO of iMarketKorea said, All companies seek cost savings and efficiency, and they prefer outsourcing to a professional firm to increase efficiency. Therefore, MRO outsourcing will become an everyday matter in the near future. MRO outsourcing in the public sector will be accelerated in the future. The Public Procurement Service currently has an in-house MRO supply business for 1500 items, but has plans to allow a private company to supply those items later this year. As such, the public sector has become the  New Blue Ocean  for MRO companies.