Procurement Outsourcing Services Market by Services, Organization Size, Industry

Description

List of Tables

The Procurement Outsourcing Services Market was valued at USD 5.01 billion in 2023, expected to reach USD 5.63 billion in 2024, and is projected to grow at a CAGR of 13.05%, to USD 11.83 billion by 2030.

Procurement outsourcing services involve delegating a company's procurement processes and activities to an external provider to improve efficiency and reduce costs. The scope encompasses various services, including strategic sourcing, procurement transaction processing, and supplier management. The necessity for these services arises from the need to focus on core competencies, access specialized skills, and leverage technological advancements. Applications span diverse industries, such as manufacturing, retail, healthcare, and technology, and are crucial in strategic areas, including supplier negotiations and contract management. The end-use scope involves organizations aiming to streamline operations and increase profitability. Key growth factors include globalization, digital transformation, and an increasing emphasis on cost efficiency, which drive organizations to adopt procurement outsourcing services. The rise of cloud-based solutions and advanced analytics presents significant opportunities, enabling companies to enhance procurement processes, gain actionable insights, and achieve better compliance. To capitalize on these opportunities, firms should invest in cutting-edge technologies and establish collaborative partnerships with service providers. However, limitations such as data security concerns, lack of control over outsourced functions, and dependency on third-party providers pose challenges to market growth. Potential areas of innovation include the development of AI-driven procurement platforms, blockchain for transparency in supply chains, and sustainable procurement practices that address environmental and social governance (ESG) considerations. Research endeavors focused on enhancing process automation, predictive analytics, and risk management will propel business growth. The nature of the market is increasingly competitive and dynamic, with a strong emphasis on technological advancements and strategic partnerships. Companies must adapt to these changes by adopting forward-thinking strategies in innovation and leveraging insights generated from data to drive decision-making and maintain a competitive edge. This proactive approach will enable businesses to navigate challenges effectively while exploring new avenues for growth.

KEY MARKET STATISTICS
Base Year [2023]	USD 5.01 billion
Estimated Year [2024]	USD 5.63 billion
Forecast Year [2030]	USD 11.83 billion
CAGR (%)	13.05%

Market Dynamics: Unveiling Key Market Insights in the Rapidly Evolving Procurement Outsourcing Services Market

The Procurement Outsourcing Services Market is undergoing transformative changes driven by a dynamic interplay of supply and demand factors. Understanding these evolving market dynamics prepares business organizations to make informed investment decisions, refine strategic decisions, and seize new opportunities. By gaining a comprehensive view of these trends, business organizations can mitigate various risks across political, geographic, technical, social, and economic domains while also gaining a clearer understanding of consumer behavior and its impact on manufacturing costs and purchasing trends.

Market Drivers
- Growing adoption of IT solutions in the manufacturing and financial industry
- Adoption of procurement outsourcing services to manage risks related to supply chain disruptions
Market Restraints
- Complexities related to procurement outsourcing services
Market Opportunities
- Government initiatives and investments for digitalization of industrial operations
- Emerging partnerships among procurement outsourcing service providers and enterprises
Market Challenges
- Data security and privacy issues associated with procurement outsourcing services

Porter's Five Forces: A Strategic Tool for Navigating the Procurement Outsourcing Services Market

Porter's five forces framework is a critical tool for understanding the competitive landscape of the Procurement Outsourcing Services Market. It offers business organizations with a clear methodology for evaluating their competitive positioning and exploring strategic opportunities. This framework helps businesses assess the power dynamics within the market and determine the profitability of new ventures. With these insights, business organizations can leverage their strengths, address weaknesses, and avoid potential challenges, ensuring a more resilient market positioning.

PESTLE Analysis: Navigating External Influences in the Procurement Outsourcing Services Market

External macro-environmental factors play a pivotal role in shaping the performance dynamics of the Procurement Outsourcing Services Market. Political, Economic, Social, Technological, Legal, and Environmental factors analysis provides the necessary information to navigate these influences. By examining PESTLE factors, businesses can better understand potential risks and opportunities. This analysis enables business organizations to anticipate changes in regulations, consumer preferences, and economic trends, ensuring they are prepared to make proactive, forward-thinking decisions.

Market Share Analysis: Understanding the Competitive Landscape in the Procurement Outsourcing Services Market

A detailed market share analysis in the Procurement Outsourcing Services Market provides a comprehensive assessment of vendors' performance. Companies can identify their competitive positioning by comparing key metrics, including revenue, customer base, and growth rates. This analysis highlights market concentration, fragmentation, and trends in consolidation, offering vendors the insights required to make strategic decisions that enhance their position in an increasingly competitive landscape.

FPNV Positioning Matrix: Evaluating Vendors' Performance in the Procurement Outsourcing Services Market

The Forefront, Pathfinder, Niche, Vital (FPNV) Positioning Matrix is a critical tool for evaluating vendors within the Procurement Outsourcing Services Market. This matrix enables business organizations to make well-informed decisions that align with their goals by assessing vendors based on their business strategy and product satisfaction. The four quadrants provide a clear and precise segmentation of vendors, helping users identify the right partners and solutions that best fit their strategic objectives.

Strategy Analysis & Recommendation: Charting a Path to Success in the Procurement Outsourcing Services Market

A strategic analysis of the Procurement Outsourcing Services Market is essential for businesses looking to strengthen their global market presence. By reviewing key resources, capabilities, and performance indicators, business organizations can identify growth opportunities and work toward improvement. This approach helps businesses navigate challenges in the competitive landscape and ensures they are well-positioned to capitalize on newer opportunities and drive long-term success.

Key Company Profiles

The report delves into recent significant developments in the Procurement Outsourcing Services Market, highlighting leading vendors and their innovative profiles. These include Infosys Limited, WNS (Holdings) Limited, Hewlett Packard Enterprise Company, Tata Consultancy Services Limited, Microsoft Corporation, Capgemini SE, International Business Machines Corporation, SAP SE, Wipro Limited, Genpact Limited, Oracle Corporation, Google LLC by Alphabet Inc., DXC Technology Company, Boston Consulting Group, Inc., Procol Tech Private Limited, HCL Technologies Limited, Invensis Technologies Pvt. Ltd., Dragon Sourcing, Corbus LLC by Soin, LLC, Accenture PLC, Aquanima Group by Santander Group, Ramco Systems Limited, Amazon Web Services, Inc., Proxima Group by Bain & Company Inc., Conduent, Inc., TTEC Holdings, Inc., TD SYNNEX Corporation, Hexaware Technologies Limited, and GEP Worldwide.

Market Segmentation & Coverage

This research report categorizes the Procurement Outsourcing Services Market to forecast the revenues and analyze trends in each of the following sub-markets:

Based on Services, market is studied across Business Process Outsourcing Services and Consulting Services. The Business Process Outsourcing Services is further studied across Procure-to-Pay, Source-to-Contract, and Supplier Relationship Management.
Based on Organization Size, market is studied across Large Enterprises and Small & Medium Enterprises.
Based on Industry, market is studied across Aerospace & Defense, Automotive & Transportation, Banking, Financial Services & Insurance, Building, Construction & Real Estate, Consumer Goods & Retail, Education, Energy & Utilities, Government & Public Sector, Healthcare & Life Sciences, Information Technology, Manufacturing, Media & Entertainment, Telecommunication, and Travel & Hospitality.
Based on Region, market is studied across Americas, Asia-Pacific, and Europe, Middle East & Africa. The Americas is further studied across Argentina, Brazil, Canada, Chile, Colombia, Mexico, Peru, and United States. The United States is further studied across California, Florida, Illinois, New York, Ohio, Pennsylvania, and Texas. The Asia-Pacific is further studied across Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam. The Europe, Middle East & Africa is further studied across Denmark, Egypt, Finland, France, Germany, Israel, Italy, Netherlands, Nigeria, Norway, Poland, Qatar, Russia, Saudi Arabia, South Africa, Spain, Sweden, Switzerland, Turkey, United Arab Emirates, and United Kingdom.

The report offers a comprehensive analysis of the market, covering key focus areas:

1. Market Penetration: A detailed review of the current market environment, including extensive data from top industry players, evaluating their market reach and overall influence.

2. Market Development: Identifies growth opportunities in emerging markets and assesses expansion potential in established sectors, providing a strategic roadmap for future growth.

3. Market Diversification: Analyzes recent product launches, untapped geographic regions, major industry advancements, and strategic investments reshaping the market.

4. Competitive Assessment & Intelligence: Provides a thorough analysis of the competitive landscape, examining market share, business strategies, product portfolios, certifications, regulatory approvals, patent trends, and technological advancements of key players.

5. Product Development & Innovation: Highlights cutting-edge technologies, R&D activities, and product innovations expected to drive future market growth.

The report also answers critical questions to aid stakeholders in making informed decisions:

1. What is the current market size, and what is the forecasted growth?

2. Which products, segments, and regions offer the best investment opportunities?

3. What are the key technology trends and regulatory influences shaping the market?

4. How do leading vendors rank in terms of market share and competitive positioning?

5. What revenue sources and strategic opportunities drive vendors' market entry or exit strategies?

Product Code: MRR-43676CF420F0

1. Preface

1.1. Objectives of the Study
1.2. Market Segmentation & Coverage
1.3. Years Considered for the Study
1.4. Currency & Pricing
1.5. Language
1.6. Stakeholders

2. Research Methodology

2.1. Define: Research Objective
2.2. Determine: Research Design
2.3. Prepare: Research Instrument
2.4. Collect: Data Source
2.5. Analyze: Data Interpretation
2.6. Formulate: Data Verification
2.7. Publish: Research Report
2.8. Repeat: Report Update

3. Executive Summary

4. Market Overview

5. Market Insights

5.1. Market Dynamics
- 5.1.1. Drivers
  - 5.1.1.1. Growing adoption of IT solutions in the manufacturing and financial industry
  - 5.1.1.2. Adoption of procurement outsourcing services to manage risks related to supply chain disruptions
- 5.1.2. Restraints
  - 5.1.2.1. Complexities related to procurement outsourcing services
- 5.1.3. Opportunities
  - 5.1.3.1. Government initiatives and investments for digitalization of industrial operations
  - 5.1.3.2. Emerging partnerships among procurement outsourcing service providers and enterprises
- 5.1.4. Challenges
  - 5.1.4.1. Data security and privacy issues associated with procurement outsourcing services
5.2. Market Segmentation Analysis
- 5.2.1. Services: Utilization of procure-to-pay services in procurement outsourcing for automation and financial control
- 5.2.2. Organization Size: Utilization of procurement outsourcing services in large enterprises to enhance operational efficiency
- 5.2.3. Industry: Growing demand for procurement outsourcing services in the healthcare and life science sector for quality assurance and cost efficiency of medical equipment and pharmaceutical services
5.3. Porter's Five Forces Analysis
- 5.3.1. Threat of New Entrants
- 5.3.2. Threat of Substitutes
- 5.3.3. Bargaining Power of Customers
- 5.3.4. Bargaining Power of Suppliers
- 5.3.5. Industry Rivalry
5.4. PESTLE Analysis
- 5.4.1. Political
- 5.4.2. Economic
- 5.4.3. Social
- 5.4.4. Technological
- 5.4.5. Legal
- 5.4.6. Environmental

6. Procurement Outsourcing Services Market, by Services

6.1. Introduction
6.2. Business Process Outsourcing Services
- 6.2.1. Procure-to-Pay
- 6.2.2. Source-to-Contract
- 6.2.3. Supplier Relationship Management
6.3. Consulting Services

7. Procurement Outsourcing Services Market, by Organization Size

7.1. Introduction
7.2. Large Enterprises
7.3. Small & Medium Enterprises

8. Procurement Outsourcing Services Market, by Industry

8.1. Introduction
8.2. Aerospace & Defense
8.3. Automotive & Transportation
8.4. Banking, Financial Services & Insurance
8.5. Building, Construction & Real Estate
8.6. Consumer Goods & Retail
8.7. Education
8.8. Energy & Utilities
8.9. Government & Public Sector
8.10. Healthcare & Life Sciences
8.11. Information Technology
8.12. Manufacturing
8.13. Media & Entertainment
8.14. Telecommunication
8.15. Travel & Hospitality

9. Americas Procurement Outsourcing Services Market

9.1. Introduction
9.2. Argentina
9.3. Brazil
9.4. Canada
9.5. Chile
9.6. Colombia
9.7. Mexico
9.8. Peru
9.9. United States

10. Asia-Pacific Procurement Outsourcing Services Market

10.1. Introduction
10.2. Australia
10.3. China
10.4. India
10.5. Indonesia
10.6. Japan
10.7. Malaysia
10.8. Philippines
10.9. Singapore
10.10. South Korea
10.11. Taiwan
10.12. Thailand
10.13. Vietnam

11. Europe, Middle East & Africa Procurement Outsourcing Services Market

11.1. Introduction
11.2. Denmark
11.3. Egypt
11.4. Finland
11.5. France
11.6. Germany
11.7. Israel
11.8. Italy
11.9. Netherlands
11.10. Nigeria
11.11. Norway
11.12. Poland
11.13. Qatar
11.14. Russia
11.15. Saudi Arabia
11.16. South Africa
11.17. Spain
11.18. Sweden
11.19. Switzerland
11.20. Turkey
11.21. United Arab Emirates
11.22. United Kingdom

12. Competitive Landscape

12.1. Market Share Analysis, 2023
12.2. FPNV Positioning Matrix, 2023
12.3. Competitive Scenario Analysis
- 12.3.1. GEP Enhances Services with Acquisition of OpusCapita, Boosting Efficiency and Innovation in Procurement Solutions
- 12.3.2. Revolutionizing Procurement with GEP's New AI-Driven 'Total-Orchestration'
- 12.3.3. Iris Partners with Amazon Business to Streamline Procurement for UK Schools, Enhancing Access to Educational Resources
- 12.3.4. Bayer Partners with GEP to Centralize and Standardize Procurement, Boost Efficiency, and Enhance Spending Control Through GEP SMART
- 12.3.5. Accenture Boosts Procurement Services with Insight Sourcing Group Acquisition
- 12.3.6. Genpact and ServiceNow Partner to Enhance Source-to-Pay Applications, Streamlining Procurement Outsourcing
- 12.3.7. Accenture Enhances Procurement Services for Private Equity Clients with Impendi Analytics Acquisition
- 12.3.8. Accenture Enhances Procurement Services with Acquisition of The Shelby Group
- 12.3.9. Jabil Strengthens Supply Chain Services with Acquisition of Procurement Specialist ProcureAbility
- 12.3.10. British Council Partners with TCS to Boost Digital Infrastructure and Operational Efficiency
- 12.3.11. Conduent Unveils Advanced Software to Boost Financial Performance and Uncover Hidden Capital
- 12.3.12. SAP Launches AI-Powered Tool to Transform Procurement and Enhance Supplier Management Efficiency
12.4. Strategy Analysis & Recommendation
- 12.4.1. Accenture PLC
- 12.4.2. Capgemini SE
- 12.4.3. Conduent, Inc.
- 12.4.4. SAP SE
- 12.4.5. Oracle Corporation

Companies Mentioned

1. Infosys Limited
2. WNS (Holdings) Limited
3. Hewlett Packard Enterprise Company
4. Tata Consultancy Services Limited
5. Microsoft Corporation
6. Capgemini SE
7. International Business Machines Corporation
8. SAP SE
9. Wipro Limited
10. Genpact Limited
11. Oracle Corporation
12. Google LLC by Alphabet Inc.
13. DXC Technology Company
14. Boston Consulting Group, Inc.
15. Procol Tech Private Limited
16. HCL Technologies Limited
17. Invensis Technologies Pvt. Ltd.
18. Dragon Sourcing
19. Corbus LLC by Soin, LLC
20. Accenture PLC
21. Aquanima Group by Santander Group
22. Ramco Systems Limited
23. Amazon Web Services, Inc.
24. Proxima Group by Bain & Company Inc.
25. Conduent, Inc.
26. TTEC Holdings, Inc.
27. TD SYNNEX Corporation
28. Hexaware Technologies Limited
29. GEP Worldwide