Outcome-based Procurement

Outcome-based procurement is a purchasing approach where organizations focus on the results or benefits they want to achieve, rather than just buying specific products or services. Instead of specifying exactly what they need, they set clear goals or outcomes—such as improved service quality or increased efficiency—that suppliers must deliver. This encourages vendors to innovate and find the best ways to meet these objectives. The success of the contract is measured by whether the desired outcomes are achieved, aligning supplier performance with the organization’s broader goals and ensuring value for money.