According to a new market report titled Procurement Outsourcing Services Market -Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2018 - 2026 published by Transparency Market Research the global procurement outsourcing services market is expected to reach US$ 8,050.6 Mn by 2026, from US$ 2,819.2 Mn in 2017, expanding at a CAGR of 12.7% from 2018 to 2026. According to the report, the global market is expected to continue to be influenced by a range of macroeconomic and industry-specific factors. North America is anticipated to continue to be at the forefront in generating demand for procurement outsourcing services, with the market in the region estimated to expand at a CAGR of 12.7% during the forecast period. Technological advancements, increased digitization, and presence of a large number of procurement outsourcing services providers in the region are anticipated to drive the procurement outsourcing services market in North America.
Manufacturing and BFSI industries and stringent regulatory guidelines to drive the global procurement outsourcing services market
Increase in adoption of new IT solutions with modern consumer trends in different organizations and rise in emphasis on business process automation are expected to boost the growth of the procurement outsourcing services market in the next few years. Moreover, increase in demand for procurement services from the manufacturing and BFSI industries is expected to fuel the growth of the market in the near future. Companies are increasingly adopting procurement outsourcing services, which are outsourced by third-party vendors, to reduce their operational costs and increase their revenues. This is likely to propel the growth of the market during the forecast period.
In terms of growth, both North America and Europe are mature markets for procurement outsourcing services due to high awareness about the services among users and rising number of service providers in the region. The procurement outsourcing services market in Asia Pacific is expected to expand at a robust pace during the forecast period. Rise in penetration of technology as well as significant investments for optimal utilization of procurement software and services across countries such as the U.S., U.K., Germany, France, China, India, and Brazil are anticipated to offer lucrative opportunities to the procurement outsourcing services providers in the near future.
Scope of the report
Based on type, the global procurement outsourcing services market has been segmented into business process outsourcing services and consulting services. The business process outsourcing services segment held significant market share and is anticipated to remain dominant over the forecast period. The consulting services segment is anticipated to expand at a significant pace during the forecast period due to rise in adoption of procurement services across end-user industries. Procurement process helps companies save on significant capital. These savings can arise from risk assessment, material purchase, and superior supplier selection. Consulting services include supply risk management, opportunity assessment, procurement transformation, M&A services, and strategic cost management. Cost reduction, the key objective of chief procurement officers (CPOs) across end-user industries, is a key driver of the global procurement consulting services market.
The business process outsourcing services segment has been further divided into category management, source management, procurement management, supplier management and procure to pay. The category management sub-segment accounted for a prominent share of the global market in 2017, followed by the source management sub-segment. The procure to pay sub-segment is expected to grow rapidly during the forecast period due to increasing adoption of PO management, spot buy / tactical buy, catalog development & management, master data management, and centralized procurement service desk among various end-user industries. The report includes analysis of the procurement outsourcing services market by region, segmented into North America, Europe, Asia Pacific, Middle East & Africa, and South America.
In terms of industry, the procurement outsourcing services market has been segmented into BFSI (banking, financial services and insurance), energy & utilities, healthcare, IT & telecom, professional services, manufacturing, retail, logistics, and others. The others segment includes defense, paper & pulp sector, and other related sectors. The manufacturing and BFSI sectors are the early adopters of procurement outsourcing services, followed by retail, IT & telecom, and healthcare. Uncertain economic pressure across the globe makes it important for enterprises to adopt cost-efficient services to boost up their procurement process. Large and small-scale enterprises can achieve many benefits such as visibility in the entire procurement process, increased procurement approach, cost control, and process innovation with adoption of strategic procurement management systems. Based on industry, the manufacturing sector is a prominent user of procurement outsourcing services. The segment accounted for a major market share in 2017, while the BFSI sector is expected to hold leading position in the market by the end of the forecast period. The IT & telecom sector is projected to expand at a rapid pace in the near future.
North America held a prominent share of the global procurement outsourcing services market in 2017.The procurement outsourcing services market in the region is anticipated to expand at a CAGR of 11.9% during the forecast period. In 2017, the U.S. led the procurement outsourcing services market in North America, followed by Canada. The procurement outsourcing services market in Asia Pacific and Middle East & Africa is anticipated to expand at a significant CAGR in the next few years.
Competitive market dynamics
The research study includes profiles of leading companies operating in the global procurement outsourcing services market. The profiles include details on company business overview, broad financial overview, business strategies, and recent developments. Key players operating in the procurement outsourcing services market profiled in the study are Accenture Plc, GEP, Genpact Ltd., Wipro Limited, Infosys Ltd., HCL Technologies, Aquanima, Optimum Procurement, Corbus, LLC, WNS, IBM Corporation, and Xchanging.
Procurement Outsourcing Services Market, by Component
- Business Process Outsourcing Services
- Category Management
- Source Management
- Procurement Management
- Supplier Management
- Procure to Pay
Procurement Outsourcing Services Market, by Industry
- Banking, Financial Services, and Insurance (BFSI)
- Energy & Utilities
- Oil & Gas
- Power Generation
- IT & Telecom
- Professional Services
- Consumer Goods
- Others (Defense, Paper & Pulp)
In addition, the report provides analysis of the procurement outsourcing services market with respect to the following geographic segments:
- North America
- The U.S.
- Rest of North America
- The U.K
- Rest of Europe
- Asia Pacific (APAC)
- Rest of Asia Pacific
- Middle East & Africa (MEA)
- South Africa
- Rest of Middle East & Africa
- South America
- Rest of South America
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