ID: MRFR/ICT/6123-HCR | February 2021 | Region: Global | 100 pages
Procurement Outsourcing Market Synopsis
Procurement outsourcing market is expected to register a CAGR of 15.5% during the forecast period to reach USD 4.19 billion by 2023.
Procurement outsourcing is the transfer of specified key procurement activities relating to sourcing and supplier management to a third party. This method is implemented to reduce overall costs and enable the company to focus on its core competencies. Procurement categorization and vendor management of indirect materials and services are the most popularly outsourced activities. This process witness a high demand for the procurement of indirect materials and services such as marketing, IT-related services, HR, facility management, and others.
The major factors contributing to market growth are increasing outsourcing of procurement functions by enterprises to leverage external sourcing expertise and technology know-how. The increasing need to drive efficiency and effectiveness in the supply chain is also aiding the market growth. Also, the need to adhere to regulatory guidelines and ensure compliance is fueling the adoption of procurement outsourcing. However, concerns regarding data privacy and integrity are expected to restrain market growth during the forecast period. The adoption of artificial intelligence (AI) and big data technology with analytics for digitizing the process of procurement outsourcing is a great opportunity for the solution vendors. Along with this, increasing acceptance of procurement outsourcing across verticals offers lucrative opportunity to players in the global procurement outsourcing market.
Procurement Outsourcing Market Segmentation
The procurement outsourcing market has been segmented based on component, deployment mode, organization size, vertical, and region/country.
By component, the global procurement outsourcing market has been divided into solutions and services.
Based on deployment mode, the global procurement outsourcing market has been classified into on-premise and cloud.
The organization size segment of the global procurement outsourcing market are small and medium-sized enterprises (SMEs) and large enterprises.
On the basis of vertical, the global procurement outsourcing market has been divided into banking, financial services and insurance (BFSI), healthcare, IT & telecommunication, retail & consumer products and goods, manufacturing, and others.
The global procurement outsourcing market has been analyzed for four regions—North America, Europe, Asia-Pacific, and the rest of the world.
Procurement Outsourcing Market Regional Analysis
The market in North America is expected to account for the largest market share during the forecast period. The market in North America is mature and is expected to have a steady growth rate during the assessment period. The market in Europe is expected to be the second-largest during the review period due to the increasing adoption of procurement outsourcing services across verticals such as energy and utilities, healthcare, and life sciences. The market in Asia-Pacific is expected to be the fastest-growing during the assessment period and major adoption in the manufacturing vertical. Developing countries such as India, China, and South Korea; and relatively mature markets of Japan and Singapore are driving the growth of the procurement outsourcing market. The market in the rest of the world offers numerous opportunities to vendors of the procurement outsourcing solutions and services. The verticals such as retail and consumer goods, manufacturing and IT and telecommunications are expected to boost the market of the rest of the world.
There are a number of vendors from the US and Europe in the global procurement outsourcing market. These players are focusing on expanding their customer base across the world by adopting various organic and inorganic growth strategies. New technologies such as AI, big data, analytics are being leveraged for digital transformation of procurement outsourcing services. Also, mergers, acquisitions, and collaborations are done in this market. For instance, in July 2018, Aegis (US) and StarTek (US) announced their alliance which is a great move to capture more market share.
Procurement Outsourcing Market Key Players
The key players in the global procurement outsourcing market are identified based on their country of origin, presence across different regions, recent key developments, product diversification, and industry expertise. These include Accenture (Ireland), GEP (US), e-Business International Inc. (US), IBM Corporation (US), Tata Consultancy Services (India), Infosys Limited (India), Capgemini (France), Genpact (US), Wipro Limited (India), WNS (Holdings) Ltd. (India), Corbus LLC (US), HCL Technologies Limited (India), Aquanima S.A. (Spain), Aegis (India) and Outsourcing Procurement Ltd (India). The key strategies adopted by most of the players are partnerships, agreements, collaborations, and launch of solutions and services.
Frequently Asked Questions (FAQ) :
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