Procurement Outsourcing Services
PUBLISHED: 2024 ID: SMRC26404
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Procurement Outsourcing Services

Procurement Outsourcing Services Market Forecasts to 2030 - Global Analysis By Service Type (Procure-to-Pay (P2P), Source-to-Contract (S2C), Category Management, Supplier Management, Procurement Administration and Other Service Types), Deployment Model, Organization Size, Application, End User and By Geography

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4.3 (75 reviews)
Published: 2024 ID: SMRC26404

This report covers the impact of COVID-19 on this global market
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According to Stratistics MRC, the Global Procurement Outsourcing Services Market is accounted for $5.7 billion in 2024 and is expected to reach $12.5 billion by 2030 growing at a CAGR of 13.7% during the forecast period. Procurement outsourcing involves hiring an external provider to handle some or all of an organization's procurement functions and activities. This can include sourcing and selecting suppliers, negotiating contracts, managing purchase orders and invoices, and even strategic procurement planning. The main benefits of procurement outsourcing include reducing costs, improving efficiency, and allowing the organization to focus on its core competencies. 

Market Dynamics: 

Driver: 

Focus on core competencies

As organizations prioritize their core competencies, they are more likely to outsource non-core activities like procurement. This shift drives demand for procurement outsourcing services, as companies seek to offload these functions to specialized providers. Moreover procurement outsourcing providers are expected to offer specialized knowledge and expertise that organizations may lack internally. This requirement elevates the standards and capabilities of outsourcing services, pushing providers to continually enhance their offerings to stay competitive drives the growth of the market.

Restraint:

Confidentiality and security risks

Handling sensitive procurement data and confidential business information through third-party providers raises serious concerns about data breaches and privacy violations. Companies fear that outsourcing could expose them to potential leaks of proprietary information, trade secrets, and strategic plans, which could be detrimental to their competitive position. Moreover, any breach of data security can lead to financial losses, regulatory penalties, and reputational damage, deterring businesses from outsourcing procurement functions. The complexity of ensuring data protection across different jurisdictions and compliance with varying regulatory standards adds to the challenge.

Opportunity:

Cost reduction and efficiency

Companies increasingly turn to outsourcing to cut expenses and streamline operations. By leveraging the expertise and economies of scale that outsourcing providers offer, businesses can significantly lower their procurement costs. Outsourcing providers utilize advanced technologies like AI, RPA, and data analytics to optimize procurement processes, reducing manual intervention, errors, and processing times. This technological edge enhances operational efficiency and ensures faster, more accurate procurement activities propelling the growth of the market.

Threat:

Integration challenges

Merging outsourced procurement functions with existing internal systems, such as ERP and CRM platforms, can be complex, time-consuming, and costly. Inadequate integration can lead to data silos, process inefficiencies, and communication breakdowns, undermining the benefits of outsourcing. These challenges can result in operational disruptions, delayed procurement activities, and reduced overall efficiency, deterring companies from adopting outsourcing solutions. Additionally, the need for continuous support and maintenance to ensure seamless integration further adds to the costs and complexity.

Covid-19 Impact

The COVID-19 pandemic has been affecting global economies and businesses in different countries due to lockdowns and travel bans imposed by the government. Closure of several manufacturing plants has affected the global supply chains and adversely affected the manufacturing, shipment schedules, and sales of products in the market. With the adoption of latest technologies during the pandemic to improve efficiency of the business operation and reducing the cost has positively impacted the procurement outsourcing market. The companies are integrating artificial intelligence and machine learning to automate the process of procurement. 

The procure-to-pay (P2P) segment is expected to be the largest during the forecast period

The procure-to-pay (P2P) is expected to be the largest during the forecast period as P2P streamlines the entire procurement process, from requisitioning to payment, by automating tasks and centralizing data. This reduces manual work, shortens procurement cycles, and minimizes errors, leading to overall cost savings for outsourcing companies. Moreover P2P solutions often include features for supplier onboarding, performance tracking, and communication. This fosters better supplier relationships and potentially leads to more favorable pricing and terms thus propelling the growth of the market.

The finance and accounting segment is expected to have the highest CAGR during the forecast period

The finance and accounting segment is expected to have the highest CAGR during the forecast period as finance and accounting are responsible for managing financial risks and ensuring internal controls. Outsourcing can raise concerns about control over procurement spending. However, effective financial oversight by the company and clear service level agreements (SLAs) with the outsourcing provider can mitigate these risks. This transparency allows companies to identify areas for potential savings through outsourcing, making a compelling case for utilizing procurement outsourcing services.

Region with largest share:

North America is projected to hold the largest market share during the forecast period owing to the presence of well-developed economies in the US and Canada fosters a strong foundation for procurement outsourcing services. These economies have a large number of companies seeking ways to optimize their operations. Additionally North America boasts a robust IT infrastructure, crucial for running and integrating complex procurement outsourcing solutions. This infrastructure enables seamless data flow and efficient process management.

Region with highest CAGR:

Asia Pacific is projected to hold the highest CAGR over the forecast period owing to the increasing adoption of procurement outsourcing services across multiple industry verticals such as healthcare, energy and utilities, life sciences, and others. The manufacturing sector is likely to be the largest adopter of procurement outsourcing market in the region. Developing countries in the region like China, India, and others are projected to become the evolving procurement outsourcing markets during the forecast period. Some of the developed countries like Japan and Singapore have already emerged as potential growth markets for procurement outsourcing and have observed steady growth for the last few years.

Key players in the market

Some of the key players in Procurement Outsourcing Services market include IBM, Broadcom, Oracle, Accenture, Infosys Limited, GEP, Genpact, Proxima, WNS Ltd, Capgemini, Wipro Limited, HCL Technologies Limited, Tata Consultancy Services Limited., DXC Technology Company, AEGIS Company, Corbus, LLC. and Aquanima S.A.

Key Developments:

In June 2024, Rapidus and IBM Expand Collaboration to Chiplet Packaging Technology for 2nm-Generation Semiconductors. Rapidus will receive packaging technology from IBM for high-performance semiconductors, and the two companies will collaborate with the aim to further innovate in this space.

In May 2024, IBM to Acquire SKYARCH NETWORKS INC. to Strengthen Amazon Web Services Consulting Capabilities in Japan. The planned acquisition will extend IBM Consulting’s ability to support clients in this key market on their end-to-end cloud transformation journeys, and it reinforces our commitment to strategic partners, like AWS.

In May 2024, Accenture Completes Acquisition of Customer Management IT and SirfinPA. A pair of jointly-owned Italian consultancies that operate in close synergy and offer innovative services and technology solutions in the justice and public safety sectors

Service Types Covered:
• Procure-to-Pay (P2P)
• Source-to-Contract (S2C)
• Category Management
• Supplier Management
• Procurement Administration
• Other Service Types 

Deployment Models Covered:
• On-Premises
• Cloud-Based

Organization Sizes Covered:
• Small and Medium Enterprises (SMEs)
• Large Enterprises 

Applications Covered:
• Finance and Accounting
• Marketing
• Human Resources
• Facilities Management & Office Services
• Other Applications 

End Users Covered:
• Energy and Utilities 
• Banking, Financial Services and Insurance (BFSI) 
• Healthcare 
• IT and Telecom 
• Manufacturing 
• Retail 
• Logistics 
• Other End Users 

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan        
o China        
o India        
o Australia  
o New Zealand
o South Korea
o Rest of Asia Pacific    
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa 
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings: 
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances

Table of Contents

1 Executive Summary         
           
2 Preface          
 2.1 Abstract         
 2.2 Stake Holders        
 2.3 Research Scope        
 2.4 Research Methodology       
  2.4.1 Data Mining       
  2.4.2 Data Analysis       
  2.4.3 Data Validation       
  2.4.4 Research Approach       
 2.5 Research Sources        
  2.5.1 Primary Research Sources      
  2.5.2 Secondary Research Sources      
  2.5.3 Assumptions       
           
3 Market Trend Analysis        
 3.1 Introduction        
 3.2 Drivers         
 3.3 Restraints        
 3.4 Opportunities              
 3.5 Application Analysis       
 3.6 End User Analysis        
 3.7 Emerging Markets        
 3.8 Impact of Covid-19        
           
4 Porters Five Force Analysis        
 4.1 Bargaining power of suppliers       
 4.2 Bargaining power of buyers       
 4.3 Threat of substitutes       
 4.4 Threat of new entrants       
 4.5 Competitive rivalry        
           
5 Global Procurement Outsourcing Services Market, By Service Type    
 5.1 Introduction        
 5.2 Procure-to-Pay (P2P)       
 5.3 Source-to-Contract (S2C)       
 5.4 Category Management       
 5.5 Supplier Management       
 5.6 Procurement Administration       
 5.7 Other Service Types        
           
6 Global Procurement Outsourcing Services Market, By Deployment Model   
 6.1 Introduction        
 6.2 On-Premises        
 6.3 Cloud-Based        
           
7 Global Procurement Outsourcing Services Market, By Organization Size    
 7.1 Introduction        
 7.2 Small and Medium Enterprises (SMEs)      
 7.3 Large Enterprises        
           
8 Global Procurement Outsourcing Services Market, By Application    
 8.1 Introduction        
 8.2 Finance and Accounting       
 8.3 Marketing        
 8.4 Human Resources        
 8.5 Facilities Management & Office Services      
 8.6 Other Applications        
           
9 Global Procurement Outsourcing Services Market, By End User    
 9.1 Introduction        
 9.2 Energy and Utilities        
 9.3 Banking, Financial Services and Insurance (BFSI)     
 9.4 Healthcare        
 9.5 IT and Telecom        
 9.6 Manufacturing        
 9.7 Retail         
 9.8 Logistics         
 9.9 Other End Users        
           
10 Global Procurement Outsourcing Services Market, By Geography    
 10.1 Introduction        
 10.2 North America        
  10.2.1 US        
  10.2.2 Canada        
  10.2.3 Mexico        
 10.3 Europe         
  10.3.1 Germany        
  10.3.2 UK        
  10.3.3 Italy        
  10.3.4 France        
  10.3.5 Spain        
  10.3.6 Rest of Europe       
 10.4 Asia Pacific        
  10.4.1 Japan        
  10.4.2 China        
  10.4.3 India        
  10.4.4 Australia        
  10.4.5 New Zealand       
  10.4.6 South Korea       
  10.4.7 Rest of Asia Pacific       
 10.5 South America        
  10.5.1 Argentina       
  10.5.2 Brazil        
  10.5.3 Chile        
  10.5.4 Rest of South America      
 10.6 Middle East & Africa       
  10.6.1 Saudi Arabia       
  10.6.2 UAE        
  10.6.3 Qatar        
  10.6.4 South Africa       
  10.6.5 Rest of Middle East & Africa      
           
11 Key Developments         
 11.1 Agreements, Partnerships, Collaborations and Joint Ventures    
 11.2 Acquisitions & Mergers       
 11.3 New Product Launch       
 11.4 Expansions        
 11.5 Other Key Strategies       
           
12 Company Profiling         
 12.1 IBM         
 12.2 Broadcom        
 12.3 Oracle         
 12.4 Accenture        
 12.5 Infosys Limited        
 12.6 GEP         
 12.7 Genpact         
 12.8 Proxima         
 12.9 WNS Ltd         
 12.10 Capgemini        
 12.11 Wipro Limited        
 12.12 HCL Technologies Limited       
 12.13 Tata Consultancy Services Limited.      
 12.14 DXC Technology Company       
 12.15 AEGIS Company        
 12.16 Corbus, LLC.        
 12.17 Aquanima S.A.        
           
List of Tables          
1 Global Procurement Outsourcing Services Market Outlook, By Region (2022-2030) ($MN)  
2 Global Procurement Outsourcing Services Market Outlook, By Service Type (2022-2030) ($MN) 
3 Global Procurement Outsourcing Services Market Outlook, By Procure-to-Pay (P2P) (2022-2030) ($MN) 
4 Global Procurement Outsourcing Services Market Outlook, By Source-to-Contract (S2C) (2022-2030) ($MN)
5 Global Procurement Outsourcing Services Market Outlook, By Category Management (2022-2030) ($MN)
6 Global Procurement Outsourcing Services Market Outlook, By Supplier Management (2022-2030) ($MN) 
7 Global Procurement Outsourcing Services Market Outlook, By Procurement Administration (2022-2030) ($MN)
8 Global Procurement Outsourcing Services Market Outlook, By Other Service Types (2022-2030) ($MN) 
9 Global Procurement Outsourcing Services Market Outlook, By Deployment Model (2022-2030) ($MN) 
10 Global Procurement Outsourcing Services Market Outlook, By On-Premises (2022-2030) ($MN) 
11 Global Procurement Outsourcing Services Market Outlook, By Cloud-Based (2022-2030) ($MN) 
12 Global Procurement Outsourcing Services Market Outlook, By Organization Size (2022-2030) ($MN) 
13 Global Procurement Outsourcing Services Market Outlook, By Small and Medium Enterprises (SMEs) (2022-2030) ($MN)
14 Global Procurement Outsourcing Services Market Outlook, By Large Enterprises (2022-2030) ($MN) 
15 Global Procurement Outsourcing Services Market Outlook, By Application (2022-2030) ($MN)  
16 Global Procurement Outsourcing Services Market Outlook, By Finance and Accounting (2022-2030) ($MN)
17 Global Procurement Outsourcing Services Market Outlook, By Marketing (2022-2030) ($MN)  
18 Global Procurement Outsourcing Services Market Outlook, By Human Resources (2022-2030) ($MN) 
19 Global Procurement Outsourcing Services Market Outlook, By Facilities Management & Office Services (2022-2030) ($MN)
20 Global Procurement Outsourcing Services Market Outlook, By Other Applications (2022-2030) ($MN) 
21 Global Procurement Outsourcing Services Market Outlook, By End User (2022-2030) ($MN)  
22 Global Procurement Outsourcing Services Market Outlook, By Energy and Utilities (2022-2030) ($MN) 
23 Global Procurement Outsourcing Services Market Outlook, By Banking, Financial Services and Insurance (BFSI) (2022-2030) ($MN)
24 Global Procurement Outsourcing Services Market Outlook, By Healthcare (2022-2030) ($MN)  
25 Global Procurement Outsourcing Services Market Outlook, By IT and Telecom (2022-2030) ($MN) 
26 Global Procurement Outsourcing Services Market Outlook, By Manufacturing (2022-2030) ($MN) 
27 Global Procurement Outsourcing Services Market Outlook, By Retail (2022-2030) ($MN)  
28 Global Procurement Outsourcing Services Market Outlook, By Logistics (2022-2030) ($MN)  
29 Global Procurement Outsourcing Services Market Outlook, By Other End Users (2022-2030) ($MN) 
           
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.

List of Figures

RESEARCH METHODOLOGY


Research Methodology

We at Stratistics opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.

Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.

Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.

Data Mining

The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.

Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.

Data Analysis

From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:

  • Product Lifecycle Analysis
  • Competitor analysis
  • Risk analysis
  • Porters Analysis
  • PESTEL Analysis
  • SWOT Analysis

The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.


Data Validation

The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.

We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.

The data validation involves the primary research from the industry experts belonging to:

  • Leading Companies
  • Suppliers & Distributors
  • Manufacturers
  • Consumers
  • Industry/Strategic Consultants

Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.


For more details about research methodology, kindly write to us at info@strategymrc.com

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