Market Overview:
The Procurement as a Service (PaaS) market estimated at USD 6.15 Billion in the year 2022, is projected to reach a revised size of USD 14.17 Billion by 2030, growing at a CAGR of 11% over the analysis period 2023-2030.
Procurement as a Service (Paas) is the outsourced procurement model that takes care of the organization?s procurement functions. The key element of procurement as services includes the service layer, technology layer, intelligence & analytics, and compliance & risk management. The Paas model offers various benefits for organizations such as helps to organizations with the selection of categories for sourcing and for handling the procurement arrangement of this category Paas assigns the category expert. It also helps processes such as supplier management to become proactive, and strategic sourcing to become predictive, it reduces the cost of operations. The Paas model provides flexibility and greater value for organizations.
Top Key Players in Procurement as a Service (PaaS) Market:
IBM, WNS, Infosys, Accenture, HCL Technologies, Capgemini, Proxima, Wipro, Genpact, GEP, Xchanging (DXC Technology), Aegis, CA Technologies, Corbus, and Other Major Players.
Market Dynamics and Factors for the Procurement as a Service (PaaS) Market:
Drivers:
Growing Adoption of the Procurement as a Service Model Among Various Organizations
The growing adoption of the Procurement as a Service (PaaS) model among various organizations is driven by several factors that make this approach attractive and beneficial. PaaS refers to outsourcing procurement activities and processes to third-party service providers. This model offers numerous advantages to organizations, contributing to its increasing popularity. outsourcing procurement functions can lead to significant cost savings. Organizations can eliminate the need for investing in procurement technology, infrastructure, and staff training, which can be expensive and time-consuming. PaaS providers often have specialized tools and expertise to streamline procurement processes and reduce overall costs.
Opportunities:
Adoption of Advanced Technologies Such as AI and IoT
The adoption of advanced technologies such as Artificial Intelligence (AI) and the Internet of Things (IoT) presents a significant opportunity for the evolution and expansion of Procurement as a Service (PaaS). As organizations strive to enhance the efficiency and effectiveness of their procurement processes, AI and IoT offer transformative capabilities that can be harnessed through PaaS solutions. AI-powered algorithms can analyze vast amounts of procurement data, enabling more accurate demand forecasting, optimized inventory management, and intelligent supplier selection. T
Segmentation Analysis of the Procurement as a Service (PaaS) Market:
By Component, The strategic sourcing segment accounts for the largest market share of over 30% in 2022. The advancement of technology has made strategic sourcing and supply management more effective, enabling businesses to reduce costs and boost profitability.
By Application, the manufacturing segment's growth in the Procurement as a Service (PaaS) market can be attributed to several factors that make this industry particularly well-suited for adopting PaaS solutions. Manufacturing companies often deal with complex supply chains, intricate procurement processes, and a diverse range of raw materials and components.
Regional Analysis of the Procurement as a Service (PaaS) Market:
North America is dominating the Procurement as a Service (PaaS) Market, particularly the United States, which has a robust and dynamic economy with a significant focus on technology and innovation. This economic strength allows businesses in the region to invest heavily in procurement solutions and services. The region is home to many tech giants, startups, and innovation hubs, fostering the development and adoption of cutting-edge procurement technologies and services.
Key Industry Development:
In May 2021, Comdata, a leading global service provider in customer management BPO, selected GEP SMART procurement software for transforming and unifying procurement.
