The global Procurement Outsourcing Market is estimated to be valued at US$ 5.15 billion in 2023 and is expected to exhibit a CAGR of 11.7% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Procurement outsourcing is the process of transferring specific procurement activities to a third-party provider. It involves the outsourcing of various procurement functions such as sourcing, supplier selection, negotiation, purchasing, and contract management. This allows organizations to focus on their core business activities while leveraging the expertise of specialized procurement service providers. The adoption of procurement outsourcing services offers several advantages, including cost optimization, improved supplier management, access to global markets, enhanced operational efficiency, and risk mitigation. With the increasing complexity of supply chains and the need for strategic sourcing, the demand for procurement outsourcing services is expected to grow significantly.
Market Key Trends:
The key trend driving the growth of the procurement outsourcing market is the increasing adoption of third-party procurement services by organizations. Outsourcing procurement functions allows companies to tap into the expertise and resources of specialized service providers, leading to improved efficiency and cost savings. Moreover, outsourcing enables organizations to access global markets and expand their supplier networks, resulting in increased competitiveness. Consequently, organizations across various industries such as manufacturing, retail, healthcare, and IT are increasingly outsourcing their procurement activities to maximize value and streamline operations.
- Political: The political factors affecting the procurement outsourcing market include government regulations and policies related to outsourcing, trade agreements, and political stability in key regions. For example, changes in trade policies or political instability in certain countries can impact the outsourcing decisions of organizations.
- Economic: The economic factors influencing the market include GDP growth, inflation rates, exchange rates, and employment levels. A strong economy with high GDP growth can lead to increased outsourcing activities as organizations look to streamline costs and improve efficiency.
- Social: The social factors include cultural norms, demographics, and social attitudes towards outsourcing. For example, a younger workforce may be more accepting of outsourcing, while certain cultures may have a preference for local procurement.
- Technological: Technological factors play a crucial role in the procurement outsourcing market. Advancements in technology, such as automation, artificial intelligence, and cloud computing, are transforming the procurement landscape. Technological advancements enable organizations to improve the efficiency and effectiveness of their procurement processes.
The Global Procurement Outsourcing Market Size is expected to witness high growth, exhibiting a CAGR of 11.7% over the forecast period of 2023-2030. This growth is primarily driven by the increasing demand for cost-effective procurement solutions and the need for organizations to focus on their core competencies. Outsourcing procurement functions allows organizations to optimize costs, improve process efficiency, and enhance supplier management.
In terms of regional analysis, North America is expected to be the fastest-growing and dominating region in the procurement outsourcing market. This can be attributed to the presence of major players in the region, technological advancements, and the need for organizations to drive operational excellence. Additionally, the Asia-Pacific region is also expected to witness significant growth due to the increasing adoption of outsourcing in emerging economies like China and India.
Key players operating in the procurement outsourcing market include Accenture Plc, IBM Corporation, GEP Worldwide, Infosys Limited, Capgemini SE, Genpact Ltd., WNS (Holdings) Limited, HCL Technologies Ltd., Wipro Limited, Tata Consultancy Services Limited, Xchanging Solutions Limited, Corbus, LLC, Proxima Group, Aquanima, and CA Technologies (Broadcom Inc.). These companies have a strong market presence and offer a wide range of procurement outsourcing services to cater to the diverse needs of organizations.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it