Procurement Outsourcing Services Market - Snapshot

Procurement outsourcing services is a process wherein a company engages an external service provider to manage their core and non-core purchase transactions and expenditures. This helps the company allocate important resources to work on strategic initiatives and handling important business activities. Procurement outsourcing services help companies reduce operational costs, increase savings on investments, and improve businesses. 

procurement outsourcing services market

In recent times, technological advancements have taken place in the procurement outsourcing services market. Manufacturing, BFSI, IT & telecom, retail, and healthcare sectors widely use procurement outsourcing services. Thus, the procurement outsourcing services market is expected to grow rapidly in the next few years. Rise in need to adopt new IT solutions with modern consumer trends across the world is primarily driving the demand for procurement outsourcing services. Moreover, increase in demand for procurement outsourcing services from the manufacturing and financial sectors is expected to fuel the growth of the market in the near future. However, high risks involved in outsourcing is projected to inhibit the growth of the procurement outsourcing services market across the world. The procurement outsourcing services market is likely to be valued at US$ 8,050.6 Bn by 2026, growing from US$ 2,819.2 Bn in 2017, expanding at a CAGR of 12.7% during the forecast period. 

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 accounted for a significant market share globally in 2017. The segment is projected to retain its leading position during the forecast period. The segment has been further categorized into category management, source management, procurement management, supplier management, and procure to pay.  The category management sub-segment accounted for leading share of the market share in 2017, while the procure to pay sub-segment is estimated to grow rapidly during the forecast period. Sourcing and category management are seen as the biggest challenges for process transformation in enterprises, thus procurement outsourcing executives are asked to measure the impact of these challenges. 

In terms of industry, the global procurement outsourcing services market can be categorized 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, and other related sectors. The manufacturing sector is the prominent user of procurement outsourcing services, followed by BFSI. The IT & telecom sector is projected to grow rapidly during the forecast period. Procurement outsourcing services are likely to witness high level of adoption in this sector. Benefits associated with using procurement outsourcing services include low capital expenditure, reduced operational costs, and improved business efficiency, which are encouraging enterprises to opt for procurement outsourcing services. 

North America is anticipated to contribute significantly to the growth of the global procurement outsourcing services market in the near future due to the large base of customers using these services in the region. The procurement outsourcing services market in Europe and South America is anticipated to follow a similar trend between 2018 and 2026. Furthermore, the procurement outsourcing services market in APAC and Middle East & Africa is likely to expand at a robust CAGR in the next few years. 

Attracted by the success of the market and underlying embryonic demand, many small and large-scale enterprises are adopting procurement outsourcing services. Providers of procurement outsourcing services are engaging in new method of offering services, technology and tools, upgrade of research and development, and partnership with other firms in order to expand their business. For instance, in January 2017, WNS entered into a definitive agreement to acquire Denali Sourcing Services, a provider of strategic procurement BPM solutions. 

Prominent players operating in the procurement outsourcing services market profiled in the study include Accenture Plc, GEP, Genpact Ltd., Aquanima, Optimum Procurement, Corbus, LLC, Wipro Limited, Infosys Ltd., HCL Technologies, WNS, IBM Corporation, and Xchanging

Procurement Outsourcing Services Market: Overview

This comprehensive report titled Procurement Outsourcing Services Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2018–2026 published by Transparency Market Research analyzes and provides growth forecast for the procurement outsourcing services market at the global as well as regional level. In terms of region, the procurement outsourcing services market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America. The report provides analysis for the period 2016–2026, wherein 2018 to 2026 is the forecast period and 2017 is the base year. An in-depth and unbiased market assessment has been made to offer readers insightful and accurate analysis. The report emphasizes on all the major trends and services that play a key role in the expansion of the procurement outsourcing services market between 2018 and 2026. It also focuses on market drivers, restraining factors, and opportunities of the procurement outsourcing services market during the forecast period. 

The report includes a detailed ecosystem analysis and opportunity analysis, which is focused on providing an extensive view of the global procurement outsourcing services market. Porter’s Five Forces analysis is also provided to understand the competitive scenario prevailing in the market. The study incorporates procurement outsourcing services market attractiveness analysis, in which market segments, such as business process outsourcing services and consulting services, are benchmarked based on their market size, growth rate, and attractiveness in terms of opportunity. In order to provide a complete analysis of the overall competitive scenario of the procurement outsourcing services market, attractiveness analysis of every geographic region mentioned in the report has been provided. 

An overview of the procurement outsourcing services market detailing key trends and dynamics has been included to provide a clear understanding of the market ecosystem forces. The dynamics include impact analysis of market drivers, restraining factors, and opportunities projected in the procurement outsourcing services market. Additionally, the report provides analysis of business strategies adopted by market leaders in the procurement outsourcing services market. Trends and services related to procurement outsourcing services, along with their application areas, have also been explained in the report. 

Global Procurement Outsourcing Services Market: Scope of the Report

The study provides a decisive view on the global procurement outsourcing services market. Based on type, the market has been broadly segmented into business process outsourcing services and consulting services. In terms of industry, the market has been classified into BFSI (banking, financial services and insurance), energy & utilities, healthcare, IT & telecom, professional services, manufacturing, retail, logistics, and others. Further, the report provides a detailed breakdown of the procurement outsourcing services market across geographic regions, which include North America, Europe, Asia Pacific, Middle East & Africa, and South America, thus providing valuable insights both at the micro and macro levels. 

The report highlights the competitive scenario prevailing in the procurement outsourcing services market, ranking all major players according to their recent developments and geographical presence. Insights provided in the report are a result of our extensive primary interviews, secondary research, and in-house expert panel reviews. These market estimates have been analyzed considering the impact of different economic, political, social, legal, and technological factors. 

The procurement outsourcing services market in North America has been segmented into the U.S., Canada, and Rest of North America, while for Europe, it has been divided into France, Germany, the U.K., and Rest of Europe. The procurement outsourcing services market in Asia Pacific has been segmented into China, Japan, India, and Rest of Asia Pacific. Middle East & Africa covers GCC countries, South Africa, and Rest of Middle East & Africa. South America includes Brazil and Rest of South America. The report provides strategic information required to understand the procurement outsourcing services market along with component and industry verticals. 

Global Procurement Outsourcing Services Market: Research Methodology

The research methodology adopted is a combination of primary research, secondary research, and expert panel reviews. Secondary sources such as annual reports, company websites, SEC filings and investor presentations, internal and external proprietary databases, statistical databases, relevant patent and regulatory databases, market reports, government publications, World Bank database, and industry white papers have been referred for developing preliminary understanding of the market. 

Primary research involves telephonic interviews, e-mail interactions, and face-to-face interviews for detailed and unbiased feedback of the procurement outsourcing services market across geographies. Primary interviews have been conducted with industry experts and participants in order to obtain the latest market insights and validate existing data and analysis, which have helped with new and fresh information on important factors such as market trends, market size, competitive landscape, growth trends, etc. These factors have helped to validate and strengthen secondary research findings. Moreover, the data collected and analyzed from secondary and primary research has again been discussed and examined by our expert panel. 

Global Procurement Outsourcing Services Market: Competitive Dynamics

The research study includes profiles of major companies operating in the global procurement outsourcing services market. Market players have been profiled in terms of attributes such as company overview, financial overview, business strategies, and recent developments. Parameters such as investment and spending and developments by major players of the market are tracked. Some of the key players in the procurement outsourcing services market are Accenture Plc, GEP, Genpact Ltd., Wipro Limited, Infosys Ltd., Aquanima, Optimum Procurement, Corbus, LLC, HCL Technologies, WNS, IBM Corporation and Xchanging among others. 

The procurement outsourcing services market has been segmented as follows:

Global Procurement Outsourcing Services Market

By Type

  • Business Process Outsourcing Services
    • Category Management
    • Source Management
    • Procurement Management
    • Supplier Management
    • Procure to Pay

By Industry

  • BFSI (Banking, Financial Services and Insurance)
  • Energy & Utilities
    • Oil & Gas
    • Power Generation
    • Water
  • Healthcare
    • Pharmaceuticals
    • Biotechnology
  • IT & Telecom
  • Professional Services
  • Manufacturing
    • Automotive
    • Consumer Goods
    • Industrial
    • Electronics
  • Retail
  • Logistics
  • Others (Defense, Paper & Pulp) 

By Geography

  • North America
    • The U.S.
    • Canada
    • Rest of North America
  • Europe
    • Germany
    • The U.K.
    • France
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • South Africa
    • Rest of Middle East & Africa
  • South America
    • Brazil
    • Rest of South America
.