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 Industry Verticals by Regions and Global Market Forecast 2023-2030

Report Scope & Overview:

The Procurement Outsourcing Services Market size was valued at USD 6.73 Bn in 2022 and is expected to reach USD 14.21 Bn by 2030, and grow at a CAGR of 9.8% over the forecast period 2023-2030.

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.

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

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.

Frequently Asked Questions (FAQ) :