Procurement Outsourcing Market Synopsis:
The Procurement Outsourcing Market Size Was Valued at USD 3.3 Billion in 2023, and is Projected to Reach USD 10.4 Billion by 2032, Growing at a CAGR of 13.7% From 2024-2032.
The procurement outsourcing market can be defined as the strategic management of the procurement activity in which the purchasing and supply chain activities are outsourced to a third-party service provider for efficiency, cost reduction and allowing the organisation to concentrate in its main activities. Outsourcing in procurement means any of the activities that involve sourcing and supplier management, contract and order management, spend analysis, and transaction management. These services are used by organizations to reduce the corporate buying center, to outsource and buy specialized knowledge, to increase supply chain transparency and to meet compliance standards. Outsourcing providers, through the combination of technology-enabling tools, enable the procurement strategies focus on attaining value through cost optimization and business growth sustainability, and suppliers’ risk and market volatility.
The market for procurement outsourcing has grown considerably due to requirement of lower costs, better procurement practices and optimal resource management. Manufacturing, retail, healthcare, and IT industry has witnessed outsourcing of procurement functions and strategic sourcing for delivering better performance over core organizational processes. That is why the increasingly rapid implementation of modern technologies, including artificial intelligence (AI), big data, and blockchain, in procurement processes continues to drive the market’s growth. These technologies bring factual data and real-time procurement decisions and empower suppliers resulting in making procurement outsourcing a strategic business model in the advanced economy.
The market for procurement outsourcing is growing due to the changing trends in the outsourcing market through strategic partnerships in service providers and enterprises. The lens of identification is moving from cost reduction goals to buyer-driven benefits like encouraging suppliers’ innovation, improving sustainability and simplification of procurement. Contract management is playing a pivotal role in defining service providers’ strategies as more players start targeting the specific needs of organizations, such as risk management and contract management life cycle, helping businesses to keep up with competition.
Procurement Outsourcing Market Trend Analysis:
Adoption of Advanced Analytics and AI in Procurement
- One of the most significant patterns in the procurement outsourcing market that emerged in recent years refers to digital and automation tools application in procurement. These technologies help organizations to get benefits of data for analytical processes including prediction and prescription to explore procurement actions regarding supplier choosing decision, demand management decision and cost controlling decision by procurement teams. AI makes many processes like invoice processing and spend analysis lean and mean and mostly frees up the human effort. Furthermore, various AI-based current day chatbots and virtual assistants are making procurement work-flows more efficient by availing real time update on suppliers, improving and quickening the decision-making process. Looking into the future, the use of AI and analytics has become a necessity for companies wanting to outsource their procurement functions.
Sustainability and Green Procurement Initiatives
- Success of greenness and sustainability in procurement practices is another factor that has a great opportunity in procurement outsourcing market. Also, because of the rising concern on ESG, organizations are incorporating environmentally conscious purchasing to attain less environmental impact and are incorporating the best sourcing practices across the globe. Outsourcing suppliers assist organizations to realize these goals because endurance of those supplier alliances together with good environmental practice as well as supply chain management are well considered. This trend has been more evident in industries like consumer goods, automotive, and energy where sustainability has become more and more a factor that helps to build a brand and get more clients.
Procurement Outsourcing Market Segment Analysis:
Procurement Outsourcing Market is Segmented on the basis of Service Type, Organisation Size, End user, and Region
By Service Type, Business Process Outsourcing Services segment is expected to dominate the market during the forecast period
- Business process outsourcing (BPO) services segment is anticipated to have the largest market share in the procurement outsourcing market throughout the forecast period due to its capability to offer integrated procurement solutions. These functions societies encompass a broad number of activities such as sourcing and vendor selection, contractual negotiations, and transactions that enable organizations to affect overall success in procurement and to minimize cost. BPO segment is one of the fastest-growing segments in the procurement industry due to emerging operational need and demand for outsourcing by organizations of diverse procurement functions to expertise BPO service providers.
- Furthermore, there is an added advantage because advanced technologies like Artificial Intelligence, Machine Learning, and Predictive Analytics are incorporated in the BPO services segment’s outsourced procurement services. These technologies avail service providers an ability to provide more value in the form of superior analytics, better relationships with suppliers and real-time performance feedback. With cost reduction and operational efficiency still being key drivers for organizations, the need for full service BPO in the procurement outsourcing space will remain strong.
By Organisation Size, Small and Medium-sized Enterprises (SMEs) segment expected to held the largest share
- During the forecast period, SMEs are expected to occupy the largest market share of the procurement outsourcing market. The procurement process in SMEs presents considerable challenges such as lack of adequate resources, lack of specialized knowledge, or poor supplier negotiations. Through outsourcing procurement functions to the third party, SMEs can overcome these challenges hence concentrating on business development apart from enjoying affordable solutions, good links with the supplier, and enhanced SCM.
- Furthermore, the availability of technological procurement platforms, as suited toLocal SMEs, have greatly augmented the proportion of SMEs that dominate the market. These platforms provide sustainable and relatively cheap solutions for SMEs to apply high-level procurement technologies and strategies that larger companies have been using. The rise of cloud-based procurement solutions among SMEs extends a strong footing on the procurement outsourcing market.
Procurement Outsourcing Market Regional Insights:
North America is Expected to Dominate the Market Over the Forecast period
- North America held the largest market share in the procurement outsourcing market the presence of a healthy business environment knitted with cutting-edge procurement technologies, high procuring requirements of the region, and precise need for affordable spending is explained by the leadership. This paper focuses on the finding that large enterprises and SMEs in the region are adopting the outsourcing strategy to improve procurement efficiency, cut costs and generate competitive advantages. In addition, more concentration of the leading market players and increasing investment on supplier management strategies and business risks in North American region makes it a strong market for procurement outsourcing.
Active Key Players in the Procurement Outsourcing Market:
- Accenture (Ireland)
- Capgemini (France)
- Corbus (United States)
- Genpact (United States)
- GEP (United States)
- HCL Technologies (India)
- IBM (United States)
- Infosys (India)
- Optimum Procurement (United Kingdom)
- Proxima (United Kingdom)
- Synise (India)
- Tata Consultancy Services (India)
- Wipro (India)
- Xchanging (United Kingdom)
- Zycus (United States)
- Other Active Players
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Procurement Outsourcing Market |
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Base Year: |
2023 |
Forecast Period: |
2024-2032 |
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Historical Data: |
2017 to 2023 |
Market Size in 2023: |
USD 3.3 Billion |
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Forecast Period 2024-32 CAGR: |
13.7% |
Market Size in 2032: |
USD 10.4 Billion |
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Segments Covered: |
By Service Type |
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By Organisation Size |
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By End User |
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By Region |
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Key Market Drivers: |
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Key Market Restraints: |
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Key Opportunities: |
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Companies Covered in the report: |
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Chapter 1: Introduction
1.1 Scope and Coverage
Chapter 2:Executive Summary
Chapter 3: Market Landscape
3.1 Market Dynamics
3.1.1 Drivers
3.1.2 Restraints
3.1.3 Opportunities
3.1.4 Challenges
3.2 Market Trend Analysis
3.3 PESTLE Analysis
3.4 Porter's Five Forces Analysis
3.5 Industry Value Chain Analysis
3.6 Ecosystem
3.7 Regulatory Landscape
3.8 Price Trend Analysis
3.9 Patent Analysis
3.10 Technology Evolution
3.11 Investment Pockets
3.12 Import-Export Analysis
Chapter 4: Procurement Outsourcing Market by Service Type
4.1 Procurement Outsourcing Market Snapshot and Growth Engine
4.2 Procurement Outsourcing Market Overview
4.3 Business Process Outsourcing Services
4.3.1 Introduction and Market Overview
4.3.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
4.3.3 Key Market Trends, Growth Factors and Opportunities
4.3.4 Business Process Outsourcing Services: Geographic Segmentation Analysis
4.4 Consulting Services
4.4.1 Introduction and Market Overview
4.4.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
4.4.3 Key Market Trends, Growth Factors and Opportunities
4.4.4 Consulting Services: Geographic Segmentation Analysis
Chapter 5: Procurement Outsourcing Market by Organisation Size
5.1 Procurement Outsourcing Market Snapshot and Growth Engine
5.2 Procurement Outsourcing Market Overview
5.3 Small and Medium-sized Enterprises (SMEs)
5.3.1 Introduction and Market Overview
5.3.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
5.3.3 Key Market Trends, Growth Factors and Opportunities
5.3.4 Small and Medium-sized Enterprises (SMEs): Geographic Segmentation Analysis
5.4 Large Enterprises
5.4.1 Introduction and Market Overview
5.4.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
5.4.3 Key Market Trends, Growth Factors and Opportunities
5.4.4 Large Enterprises: Geographic Segmentation Analysis
Chapter 6: Procurement Outsourcing Market by End User
6.1 Procurement Outsourcing Market Snapshot and Growth Engine
6.2 Procurement Outsourcing Market Overview
6.3 Manufacturing
6.3.1 Introduction and Market Overview
6.3.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
6.3.3 Key Market Trends, Growth Factors and Opportunities
6.3.4 Manufacturing: Geographic Segmentation Analysis
6.4 Retail and Consumer Goods
6.4.1 Introduction and Market Overview
6.4.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
6.4.3 Key Market Trends, Growth Factors and Opportunities
6.4.4 Retail and Consumer Goods: Geographic Segmentation Analysis
6.5 Healthcare
6.5.1 Introduction and Market Overview
6.5.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
6.5.3 Key Market Trends, Growth Factors and Opportunities
6.5.4 Healthcare: Geographic Segmentation Analysis
6.6 IT and Telecom
6.6.1 Introduction and Market Overview
6.6.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
6.6.3 Key Market Trends, Growth Factors and Opportunities
6.6.4 IT and Telecom: Geographic Segmentation Analysis
6.7 BFSI (Banking
6.7.1 Introduction and Market Overview
6.7.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
6.7.3 Key Market Trends, Growth Factors and Opportunities
6.7.4 BFSI (Banking: Geographic Segmentation Analysis
6.8 Financial Services
6.8.1 Introduction and Market Overview
6.8.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
6.8.3 Key Market Trends, Growth Factors and Opportunities
6.8.4 Financial Services: Geographic Segmentation Analysis
6.9 and Insurance)
6.9.1 Introduction and Market Overview
6.9.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
6.9.3 Key Market Trends, Growth Factors and Opportunities
6.9.4 and Insurance): Geographic Segmentation Analysis
6.10 Energy and Utilities
6.10.1 Introduction and Market Overview
6.10.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
6.10.3 Key Market Trends, Growth Factors and Opportunities
6.10.4 Energy and Utilities: Geographic Segmentation Analysis
6.11 Transportation and Logistics
6.11.1 Introduction and Market Overview
6.11.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
6.11.3 Key Market Trends, Growth Factors and Opportunities
6.11.4 Transportation and Logistics: Geographic Segmentation Analysis
6.12 Others
6.12.1 Introduction and Market Overview
6.12.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
6.12.3 Key Market Trends, Growth Factors and Opportunities
6.12.4 Others: Geographic Segmentation Analysis
Chapter 7: Company Profiles and Competitive Analysis
7.1 Competitive Landscape
7.1.1 Competitive Benchmarking
7.1.2 Procurement Outsourcing Market Share by Manufacturer (2023)
7.1.3 Industry BCG Matrix
7.1.4 Heat Map Analysis
7.1.5 Mergers and Acquisitions
7.2 ACCENTURE (IRELAND)
7.2.1 Company Overview
7.2.2 Key Executives
7.2.3 Company Snapshot
7.2.4 Role of the Company in the Market
7.2.5 Sustainability and Social Responsibility
7.2.6 Operating Business Segments
7.2.7 Product Portfolio
7.2.8 Business Performance
7.2.9 Key Strategic Moves and Recent Developments
7.2.10 SWOT Analysis
7.3 CAPGEMINI (FRANCE)
7.4 CORBUS (UNITED STATES)
7.5 GENPACT (UNITED STATES)
7.6 GEP (UNITED STATES)
7.7 HCL TECHNOLOGIES (INDIA)
7.8 IBM (UNITED STATES)
7.9 INFOSYS (INDIA)
7.10 OPTIMUM PROCUREMENT (UNITED KINGDOM)
7.11 PROXIMA (UNITED KINGDOM)
7.12 SYNISE (INDIA)
7.13 TATA CONSULTANCY SERVICES (INDIA)
7.14 WIPRO (INDIA)
7.15 XCHANGING (UNITED KINGDOM)
7.16 ZYCUS (UNITED STATES)
7.17 OTHER ACTIVE PLAYERS
Chapter 8: Global Procurement Outsourcing Market By Region
8.1 Overview
8.2 . North America Procurement Outsourcing Market
8.2.1 Key Market Trends, Growth Factors and Opportunities
8.2.2 Top Key Companies
8.2.3 Historic and Forecasted Market Size by Segments
8.2.4 Historic and Forecasted Market Size By Service Type
8.2.4.1 Business Process Outsourcing Services
8.2.4.2 Consulting Services
8.2.5 Historic and Forecasted Market Size By Organisation Size
8.2.5.1 Small and Medium-sized Enterprises (SMEs)
8.2.5.2 Large Enterprises
8.2.6 Historic and Forecasted Market Size By End User
8.2.6.1 Manufacturing
8.2.6.2 Retail and Consumer Goods
8.2.6.3 Healthcare
8.2.6.4 IT and Telecom
8.2.6.5 BFSI (Banking
8.2.6.6 Financial Services
8.2.6.7 and Insurance)
8.2.6.8 Energy and Utilities
8.2.6.9 Transportation and Logistics
8.2.6.10 Others
8.2.7 Historic and Forecast Market Size by Country
8.2.7.1 US
8.2.7.2 Canada
8.2.7.3 Mexico
8.3 . Eastern Europe Procurement Outsourcing Market
8.3.1 Key Market Trends, Growth Factors and Opportunities
8.3.2 Top Key Companies
8.3.3 Historic and Forecasted Market Size by Segments
8.3.4 Historic and Forecasted Market Size By Service Type
8.3.4.1 Business Process Outsourcing Services
8.3.4.2 Consulting Services
8.3.5 Historic and Forecasted Market Size By Organisation Size
8.3.5.1 Small and Medium-sized Enterprises (SMEs)
8.3.5.2 Large Enterprises
8.3.6 Historic and Forecasted Market Size By End User
8.3.6.1 Manufacturing
8.3.6.2 Retail and Consumer Goods
8.3.6.3 Healthcare
8.3.6.4 IT and Telecom
8.3.6.5 BFSI (Banking
8.3.6.6 Financial Services
8.3.6.7 and Insurance)
8.3.6.8 Energy and Utilities
8.3.6.9 Transportation and Logistics
8.3.6.10 Others
8.3.7 Historic and Forecast Market Size by Country
8.3.7.1 Russia
8.3.7.2 Bulgaria
8.3.7.3 The Czech Republic
8.3.7.4 Hungary
8.3.7.5 Poland
8.3.7.6 Romania
8.3.7.7 Rest of Eastern Europe
8.4 . Western Europe Procurement Outsourcing Market
8.4.1 Key Market Trends, Growth Factors and Opportunities
8.4.2 Top Key Companies
8.4.3 Historic and Forecasted Market Size by Segments
8.4.4 Historic and Forecasted Market Size By Service Type
8.4.4.1 Business Process Outsourcing Services
8.4.4.2 Consulting Services
8.4.5 Historic and Forecasted Market Size By Organisation Size
8.4.5.1 Small and Medium-sized Enterprises (SMEs)
8.4.5.2 Large Enterprises
8.4.6 Historic and Forecasted Market Size By End User
8.4.6.1 Manufacturing
8.4.6.2 Retail and Consumer Goods
8.4.6.3 Healthcare
8.4.6.4 IT and Telecom
8.4.6.5 BFSI (Banking
8.4.6.6 Financial Services
8.4.6.7 and Insurance)
8.4.6.8 Energy and Utilities
8.4.6.9 Transportation and Logistics
8.4.6.10 Others
8.4.7 Historic and Forecast Market Size by Country
8.4.7.1 Germany
8.4.7.2 UK
8.4.7.3 France
8.4.7.4 The Netherlands
8.4.7.5 Italy
8.4.7.6 Spain
8.4.7.7 Rest of Western Europe
8.5 . Asia Pacific Procurement Outsourcing Market
8.5.1 Key Market Trends, Growth Factors and Opportunities
8.5.2 Top Key Companies
8.5.3 Historic and Forecasted Market Size by Segments
8.5.4 Historic and Forecasted Market Size By Service Type
8.5.4.1 Business Process Outsourcing Services
8.5.4.2 Consulting Services
8.5.5 Historic and Forecasted Market Size By Organisation Size
8.5.5.1 Small and Medium-sized Enterprises (SMEs)
8.5.5.2 Large Enterprises
8.5.6 Historic and Forecasted Market Size By End User
8.5.6.1 Manufacturing
8.5.6.2 Retail and Consumer Goods
8.5.6.3 Healthcare
8.5.6.4 IT and Telecom
8.5.6.5 BFSI (Banking
8.5.6.6 Financial Services
8.5.6.7 and Insurance)
8.5.6.8 Energy and Utilities
8.5.6.9 Transportation and Logistics
8.5.6.10 Others
8.5.7 Historic and Forecast Market Size by Country
8.5.7.1 China
8.5.7.2 India
8.5.7.3 Japan
8.5.7.4 South Korea
8.5.7.5 Malaysia
8.5.7.6 Thailand
8.5.7.7 Vietnam
8.5.7.8 The Philippines
8.5.7.9 Australia
8.5.7.10 New Zealand
8.5.7.11 Rest of APAC
8.6 . Middle East & Africa Procurement Outsourcing Market
8.6.1 Key Market Trends, Growth Factors and Opportunities
8.6.2 Top Key Companies
8.6.3 Historic and Forecasted Market Size by Segments
8.6.4 Historic and Forecasted Market Size By Service Type
8.6.4.1 Business Process Outsourcing Services
8.6.4.2 Consulting Services
8.6.5 Historic and Forecasted Market Size By Organisation Size
8.6.5.1 Small and Medium-sized Enterprises (SMEs)
8.6.5.2 Large Enterprises
8.6.6 Historic and Forecasted Market Size By End User
8.6.6.1 Manufacturing
8.6.6.2 Retail and Consumer Goods
8.6.6.3 Healthcare
8.6.6.4 IT and Telecom
8.6.6.5 BFSI (Banking
8.6.6.6 Financial Services
8.6.6.7 and Insurance)
8.6.6.8 Energy and Utilities
8.6.6.9 Transportation and Logistics
8.6.6.10 Others
8.6.7 Historic and Forecast Market Size by Country
8.6.7.1 Turkiye
8.6.7.2 Bahrain
8.6.7.3 Kuwait
8.6.7.4 Saudi Arabia
8.6.7.5 Qatar
8.6.7.6 UAE
8.6.7.7 Israel
8.6.7.8 South Africa
8.7 . South America Procurement Outsourcing Market
8.7.1 Key Market Trends, Growth Factors and Opportunities
8.7.2 Top Key Companies
8.7.3 Historic and Forecasted Market Size by Segments
8.7.4 Historic and Forecasted Market Size By Service Type
8.7.4.1 Business Process Outsourcing Services
8.7.4.2 Consulting Services
8.7.5 Historic and Forecasted Market Size By Organisation Size
8.7.5.1 Small and Medium-sized Enterprises (SMEs)
8.7.5.2 Large Enterprises
8.7.6 Historic and Forecasted Market Size By End User
8.7.6.1 Manufacturing
8.7.6.2 Retail and Consumer Goods
8.7.6.3 Healthcare
8.7.6.4 IT and Telecom
8.7.6.5 BFSI (Banking
8.7.6.6 Financial Services
8.7.6.7 and Insurance)
8.7.6.8 Energy and Utilities
8.7.6.9 Transportation and Logistics
8.7.6.10 Others
8.7.7 Historic and Forecast Market Size by Country
8.7.7.1 Brazil
8.7.7.2 Argentina
8.7.7.3 Rest of SA
Chapter 9 Analyst Viewpoint and Conclusion
9.1 Recommendations and Concluding Analysis
9.2 Potential Market Strategies
Chapter 10 Research Methodology
10.1 Research Process
10.2 Primary Research
10.3 Secondary Research
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Procurement Outsourcing Market |
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Base Year: |
2023 |
Forecast Period: |
2024-2032 |
|
Historical Data: |
2017 to 2023 |
Market Size in 2023: |
USD 3.3 Billion |
|
Forecast Period 2024-32 CAGR: |
13.7% |
Market Size in 2032: |
USD 10.4 Billion |
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Segments Covered: |
By Service Type |
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By Organisation Size |
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By End User |
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By Region |
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Key Market Drivers: |
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Key Market Restraints: |
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Key Opportunities: |
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Companies Covered in the report: |
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