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Glossary

What is Maverick Spend?

Last updated July 2026

Definition

Maverick spend is buying that happens outside negotiated contracts and approved processes. It commonly accounts for 20–30% of indirect spend and erodes negotiated savings.

Also known as: off-contract spend, rogue spend

Every off-contract purchase forfeits negotiated pricing and adds process cost. Hackett research finds organizations lose 5–16% of targeted savings to it.

Catching maverick spend means benchmarking purchases against fair value and contract terms at the moment of buying, not in a quarterly audit.

Benchmark

20–30% of indirect spend; 5–16% of targeted savings lost.

Sources: McKinsey (via GEP)

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