Software company Basware will participate in the project as an expert in procurement solutions
The European Union has launched a sizable information society project, Pan European Public Procurement on-line (PEPPOL) with the objective of building a procurement infrastructure that covers the public sector in all EU member states. The infrastructure will make it simpler to exchange electronic invoices and other documents between public and private sector organizations. The purchase to pay solutions provider Basware will participate in the project as an expert in electronic procurement software. In Finland, the project will be coordinated by the Ministry of Finance. The total budget for the four-year project is EUR 20 million, half of which comes from the European Commission and the rest from a consortium supporting the project.
The objective of the European Commission is to make public sector procurement more efficient and transparent. In the future, the electronic infrastructure will help European companies to participate on equal terms in EU-wide public sector competitive bidding. Public sector spend in the EU member states amounts annually to some EUR 1,500 billion, equivalent of 16 percent of the gross national product of the entire area.
“Electronic procurement will generate direct cost savings: this project alone is expected to bring a 5-20 percent saving in public sector procurement. The subsequent environmental effects will also prove significant at the European level. Estimates suggest that companies send 14 billion invoices each year – in electronic form these invoices would not only reduce costs but also use less paper,” says Jari Tavi, Chief Technology Officer, Basware. “In Finland, public administration has long been a forerunner in procurement solutions, so it is only natural that these kinds of projects are initiated by the public sector,” Tavi continues.
One of the objectives of the project is to improve the Union’s competitiveness, for example in relation to the United States.
“For the European competitiveness it is important to improve public sector readiness to operate in an electronic environment. Building an efficient information society is the key to improving competitiveness,” says Olli-Pekka Rissanen, the special advisor for the project in the Finnish Ministry of Finance. “Having private sector organizations onboard is excellent because it ensures that the project will make use of the latest technology. Also, it will help to boost their competitiveness.”
The procurement infrastructure is expected to be in operation by the end of 2010. Based on open standards, the infrastructure will be independent of operators, which ensures open price competition. In addition to Finland, the consortium supporting the project includes Norway, Denmark, Germany, United Kingdom, Austria, Hungary and Italy.
For more information, please contact
Mr. Jari Tavi, CTO, Basware Corp., tel. +358 40 555 4488
About Basware
Basware is the global leader in purchase to pay solutions with more than 1,200 customers and 650,000 users in over 50 countries around the world. Basware solutions automate business-critical financial processes and deliver value by providing compliance and control, as well as fast return on investment. The solutions are distributed and implemented in Europe, the US, and Asia-Pacific through an extensive network of Basware offices and business partners.
In 2007, net sales reached EUR 73 million. The growth target for net sales for 2008 is 15–25%. Founded in 1985, Basware Corporation is a public company listed on the Nordic Exchange Helsinki. Headquartered in Finland, it has seven subsidiaries in Europe and one in the US. www.basware.com