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Procurement Outsourcing Services Market

Procurement Outsourcing Services Market Size, Share & Segmentation by Component (Solution and Services), by Deployment Model (On-Premises and Cloud), by Enterprise Size (Large Enterprises and Small & Medium Enterprises), by Application (Marketing Related Services, IT Related Services, HR Related Services, Facilities Management & Office Services, Others), by Regions and Global Market Forecast 2022-2028

Report Id: SNS/ICT/1575 | June 2022 | Region: Global | 125 Pages

Report Scope & Overview:

The Procurement Outsourcing Services Market size was valued at USD 6.13 Bn in 2021 and is expected to reach USD 12.95 Bn by 2028, and grow at a CAGR of 9.8% over the forecast period 2022-2028.

Procurement outsourcing is a method of obtaining and managing raw materials required for the production of a product or the provision of certain service. It facilitates the transfer of critical data to the third-party provider. The data also contains the actual order and payment for the items and services. The outsourcing of certain important procurement tasks such as procurement and vendor management to a third party helps organizations cut expenses while focusing on their core capabilities. The most common actions for which the corporation creates an agreement are procurement categorization and vendor management of raw materials and services. Procurement outsourcing has several advantages, including allowing internal workers to focus on core company tasks, increasing productivity and efficiency in outsourced services, simplifying processes, and lowering total operating expenses.

Procurement Outsourcing Services Market

Credit Suisse (CSGN.S) said in an internal message on Tuesday that it is outsourcing its procurement of goods and services to specialized supplier Chain IQ to help cut costs. According to the bank's director of procurement, Daniel Helmig, in a document obtained by Reuters, almost half of the bank's procurement team would be transferred to Chain IQ as part of a deal aimed at "generating considerable financial gains over the following years."

MARKET DYNAMICS:

KEY DRIVERS:

  • With contemporary consumer trends, there is a greater need to implement new IT solutions.

  • The requirement to handle compliance standards and agreements has increased.

  • Enterprises have increased their need for procurement process simplification.

RESTRAINTS:

  • Outsourcing comes with a significant level of risk.

  • Various levels of difficulty are connected with category management.

OPPORTUNITY:

  • The manufacturing and finance industries have increased their need for procurement outsourcing services as a result of fast technology improvements.

  • AI and big data technologies are widely used.

CHALLENGES:

  • Procurement outsourcing services may face challenges in terms of data protection and integrity.

IMPACT OF COVID-19:

Due to government-imposed lockdowns and travel prohibitions, the COVID-19 pandemic has had an impact on the worldwide economy and enterprises in several countries. The closure of various industrial units has had a negative impact on global supply chains, affecting manufacturing, shipment timetables, and product sales. Few firms have indicated that product shipments may be disrupted and that future sales of their items may suffer. The deployment of cutting-edge technology to boost corporate efficiency and cut costs during the pandemic has had a favorable influence on the procurement outsourcing sector. To automate the procurement process, corporations are using artificial intelligence and machine learning. Furthermore, this technique enables businesses to concentrate on their core skills rather than on non-essential tasks.

MARKET ESTIMATION:

The global market has been divided into category management, strategic sourcing, contract management, spend management, transaction management, and process management based on component types. In 2021, the strategic sourcing sector held the biggest market share. The increasing number of risks, such as a COVID-19 pandemic, natural disasters, and worldwide political turmoil, that have a long-term impact on enterprises, allow firms to choose better sourcing options. Over the projection period, the transaction management segment is predicted to increase significantly. Effective transaction management is a vital component that helps end-users boost business profitability while maintaining ethical and long-term business relationships with suppliers. In the next years, the segment's expansion is expected to be driven by companies' increasing attention to optimizing pricing & terms, purchase order, delivery, and invoicing applications in the whole transaction process.

The worldwide market has been divided into major companies and Small and Medium-Scale Enterprises on the basis of organizations (SMEs). In 2021, the big businesses category held the highest market share. Large businesses who expect to handle complicated procurement contracts and bag agreements will continue to invest in these services, making them the most popular. Furthermore, because these services reduce operating expenses while removing business complications, they are a popular choice among major businesses. Over the projection period, the Small & Medium Enterprises (SMEs) category is predicted to develop at a substantial rate. To make rapid choices, small and medium-sized businesses have been observed moving their attention from overall operations management to particular business process management.

The worldwide market has been segmented into BFSI, manufacturing, retail, IT & telecom, healthcare, and other sectors. In 2021, the manufacturing vertical segment led the worldwide market with the highest share. The expansion of this market was primarily due to the management of supply chains with shorter lead times. Manufacturing will continue to be the market's most important demand driver through 2028. The services provided by the industrial industry are targeted at improving supply chain dynamics in terms of direct inputs and raw materials. The retail sector held a significant share in 2021 and is expected to rise at a significant rate during the projected period. The retail business is consumer-focused, with dynamic industry trends resulting from changing client demands and spending habits. These services aid in the alignment of several activities in the retail environment while maximizing returns on investment.

KEY MARKET SEGMENTS:

On The Basis of Component         

  • Solution

  • Services

On The Basis of Deployment Model       

  • On-Premises

  • Cloud

On The Basis of Enterprise Size  

  • Large Enterprises

  • Small & Medium Enterprises

On The Basis of Application        

  • Marketing Related Services

  • IT Related Services

  • HR Related Services

  • Facilities Management & Office Services

  • Others

On The Basis of Industry Vertical          

  • BFSI

  • Energy & Utilities

  • Healthcare

  • IT & Telecom

  • Professional Services

  • Manufacturing

  • Retail

  • Logistics

  • Others

Procurement Outsourcing Services Market

REGIONAL ANALYSIS:

North America is expected to account for the largest share of the market throughout the forecast period. North America's market is mature, and it is predicted to grow at a stable rate during the evaluation period. Due to the increased usage of procurement outsourcing services across sectors such as energy and utilities, healthcare, and life sciences, Europe is likely to be the second-largest market throughout the study period. During the assessment period, Asia-Pacific is predicted to be the fastest-growing market, with significant adoption in the industrial vertical. The procurement outsourcing industry is being driven by developing countries like India, China, and South Korea, as well as more mature markets like Japan and Singapore. Vendors of procurement outsourcing solutions and services might find various prospects in the rest of the globe. The rest of the world's market is likely to be boosted by sectors such as retail and consumer goods, manufacturing, and IT and telecommunications.

REGIONAL COVERAGE:

  • North America

    • USA

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

    • The Netherlands

    • Rest of Europe

  • Asia-Pacific

    • Japan

    • south Korea

    • China

    • India

    • Australia

    • Rest of Asia-Pacific

  • The Middle East & Africa

    • Israel

    • UAE

    • South Africa

    • Rest of Middle East & Africa

  • Latin America

    • Brazil

    • Argentina

    • Rest of Latin America

KEY PLAYERS:

The major key players are International Business Machines Corporation, Accenture Plc, GEP, Infosys Ltd, Capgemini SE, Genpact Ltd, Tata Consultancy Services Limited, DXC Technology Company, WNS Limited, Wipro Limited.

Procurement Outsourcing Services Market Report Scope:
Report Attributes Details
Market Size in 2021  US$ 6.13 Bn
Market Size by 2028  US$ 12.95 Bn
CAGR   CAGR of 9.8% From 2022 to 2028
Base Year  2021
Forecast Period  2022-2028
Historical Data  2017-2020
Report Scope & Coverage Market Size, Segments Analysis, Competitive  Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook
Key Segments • by Component (Solution and Services)
• by Deployment Model (On-Premises and Cloud)
• by Enterprise Size (Large Enterprises and Small & Medium Enterprises)
• by Application (Marketing Related Services, IT Related Services, HR Related Services, Facilities Management & Office Services, Others)
Regional Analysis/Coverage North America (USA, Canada, Mexico), Europe
(Germany, UK, France, Italy, Spain, Netherlands,
Rest of Europe), Asia-Pacific (Japan, South Korea,
China, India, Australia, Rest of Asia-Pacific), The
Middle East & Africa (Israel, UAE, South Africa,
Rest of Middle East & Africa), Latin America (Brazil, Argentina, Rest of Latin America)
Company Profiles International Business Machines Corporation, Accenture Plc, GEP, Infosys Ltd, Capgemini SE, Genpact Ltd, Tata Consultancy Services Limited, DXC Technology Company, WNS Limited, Wipro Limited
Key Drivers • With contemporary consumer trends, there is a greater need to implement new IT solutions
• The requirement to handle compliance standards and agreements has increased
Market Challenges • Procurement outsourcing services may face challenges in terms of data protection and integrity.

 


Frequently Asked Questions (FAQ) :

Ans: - The estimated market size for the Procurement Outsourcing Services Market for the year 2028 is USD 12.95 Bn

Ans: - The requirement to handle compliance standards and agreements has increased. And Enterprises have increased their need for procurement process simplification.

Ans: - North America is expected to account for the largest share of the market throughout the forecast period.

 

Ans. The primary growth tactics of Procurement Outsourcing Services market participants include merger and acquisition, business expansion, and product launch.

Ans: - Key Stakeholders Considered in the study are Raw material vendors, Regulatory authorities, including government agencies and NGOs, Commercial research, and development (R&D) institutions, Importers and exporters, etc.


Table of Contents

 

1. Introduction

1.1 Market Definition

1.2 Scope

1.3 Research Assumptions

 

2. Research Methodology

 

3. Market Dynamics

3.1 Drivers

3.2 Restraints

3.3 Opportunities

3.4 Challenges

 

4. Impact Analysis

4.1 COVID 19 Impact Analysis

4.2 Impact of the Ukraine- Russia war

 

5. Value Chain Analysis

 

6. Porter’s 5 forces model

 

7. PEST Analysis

 

8. Procurement Outsourcing Services Market Segmentation, by Component     

8.1 Solution

8.2 Services

 

9. Procurement Outsourcing Services Market Segmentation, by Deployment Model    

9.1 On-Premises

9.2 Cloud

 

10. Procurement Outsourcing Services Market Segmentation, by Enterprise Size       

10.1 Large Enterprises

10.2 Small & Medium Enterprises

 

11. Procurement Outsourcing Services Market Segmentation, by Application   

11.1 Marketing Related Services

11.2 IT Related Services

11.3 HR Related Services

11.4 Facilities Management & Office Services

11.5 Others

 

12. Procurement Outsourcing Services Market Segmentation, by Industry Vertical     

12.1 BFSI

12.2 Energy & Utilities

12.3 Healthcare

12.4 IT & Telecom

12.5 Professional Services

12.6 Manufacturing

12.7 Retail

12.8 Logistics

12.7 Others

 

13. Regional Analysis

13.1 Introduction

13.2 North America

13.2.1 USA

13.2.2 Canada

13.2.3 Mexico

13.3 Europe

13.3.1 Germany

13.3.2 UK

13.3.3 France

13.3.4 Italy

13.3.5 Spain

13.3.6 The Netherlands

13.3.7 Rest of Europe

13.4 Asia-Pacific

13.4.1 Japan

13.4.2 South Korea

13.4.3 China

13.4.4 India

13.4.5 Australia

13.4.6 Rest of Asia-Pacific

13.5 The Middle East & Africa

13.5.1 Israel

13.5.2 UAE

13.5.3 South Africa

13.5.4 Rest

13.6 Latin America

13.6.1 Brazil

13.6.2 Argentina

13.6.3 Rest of Latin America

 

14. Company Profiles

14.1 International Business Machines Corporation

14.1.1 Financial

14.1.2 Products/ Services Offered

14.1.3 SWOT Analysis

14.1.4 The SNS view

14.2 Accenture Plc

14.3 GEP

14.4 Infosys Ltd

14.5 Capgemini SE

14.6 Genpact Ltd

14.7 Tata Consultancy Services Limited,

14.8 DXC Technology Company

14.9 WNS Limited

14.10 Wipro Limited

 

15. Competitive Landscape

15.1 Competitive Benchmarking

15.2 Market Share Analysis

15.3 Recent Developments

 

16. Conclusion

An accurate research report requires proper strategizing as well as implementation. There are multiple factors involved in the completion of a good and accurate research report and selecting the best methodology to complete the research is the toughest part. Since the research reports, we provide play a crucial role in any company’s decision-making process, therefore we at SNS Insider always believe that we should choose the best method which gives us results closer to reality. This allows us to reach a stage wherein we can provide our clients best and most accurate investment to output ratio.

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The 5 steps process:

Step 1: Secondary Research:

Secondary Research or Desk Research as the name suggests is a research process wherein, we collect data through readily available information. In this process, we use various paid and unpaid databases to which our team has access and gather data through the same. This includes examining listed companies’ annual reports, Journals, SEC filling, etc. Apart from this, our team has access to various associations across the globe across different industries. Lastly, we have exchange relationships with various universities as well as individual libraries.

Secondary Research

Step 2: Primary Research

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