The global Procurement Outsourcing Market is estimated to be valued at Us$ 5.15 Bn in 2023 and is expected to exhibit a CAGR Of 11% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.
Procurement outsourcing refers to partnering with third-party service providers for managing key procurement functions & processes such as sourcing, supplier management, contract management, e-procurement, procurement administration, and spend analysis on behalf of the organization. Outsourcing procurement enables businesses to focus more on their core operations while leveraging expertise of service providers to maximize cost savings, ensure compliance, and achieve efficiencies in procurement processes. Cybersecurity has emerged as one of the fastest growing segments driving the demand for procurement outsourcing services.
Market Overview:
Procurement outsourcing services help organizations streamline procurement functions, reduce costs, ensure regulatory compliance, manage supply risks,and gain access to expertise and advanced technologies. Growing need to efficiently manage procurement operations and focus more on core business goals is driving increased adoption of procurement outsourcing globally.
Market key trends:
One of the key trends fueling the procurement outsourcing market is the shift towards managed procurement services (MPS) model where third-party providers handle the entire spectrum of procurement responsibilities on behalf of organizations. MPS offers high scalability, standardized processes, strong governance & controls, and advanced analytics capabilities to optimize procurement spend. Emergence of digital procurement platforms that leverage AI, big data, and cloud is another major trend enabling services providers deliver more value added services around supplier discovery, demand forecasting, contract management and spend analysis.
Segment Analysis
The global procurement outsourcing market is segmented into categories, solutions, end-use industries, and regions. By categories, the strategic sourcing category dominates the market, accounting for over 30% share in 2022. Strategic sourcing helps organizations optimize procurement processes, reduce costs, and manage supply chains.
Key Takeaways
The Global Procurement Outsourcing Market Demand is expected to witness high growth, exhibiting a CAGR of 11.% over the forecast period, due to increasing focus on reducing operational costs.
Regional analysis
North America dominates the procurement outsourcing market, accounting for over 35% share in 2022. The presence of major outsourcing companies and availability of advanced technologies have made North America the fastest growing market. Asia Pacific exhibits the second highest growth rate due to the rapidly growing outsourcing industry in emerging countries of China and India.
Key players
Key players operating in the procurement outsourcing market include Accenture Plc, IBM Corporation, GEP Worldwide, Infosys Limited, Capgemini SE, Genpact Ltd., WNS (Holdings) Limited, HCL Technologies Ltd., Wipro Limited, Tata Consultancy Services Limited, Xchanging Solutions Limited, Corbus, LLC, Proxima Group, Aquanima, CA Technologies (Broadcom Inc.). Accenture and IBM are the market leaders due to their extensive global presence and full-suite procurement outsourcing offerings.
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