Procurement Outsourcing Market

Technological advancements are driving the market growth

During the projection period, adoption of cutting-edge technology to streamline corporate processes will fuel market expansion for procurement outsourcing. Companies are eager to implement these technologies to increase their scalability and flexibility and lower overall operating costs. With the aid of software as a service, businesses are outsourcing their business operations to a third-party company so they can concentrate on their core capabilities. Additionally, commercial operations are becoming automated thanks to artificial intelligence and machine learning. This factor drives the market CAGR.

Additionally, the growth of the procurement outsourcing market is driven by several factors, including the need to adopt new IT solutions aligned with consumer trends, the demand for simplified procurement processes by enterprises, and the management of compliance policies and agreements. However, outsourcing risks and management difficulties pose obstacles to market growth. On the other hand, technological advancements, increased demand from the manufacturing sectors, and the adoption of AI and big data technologies present promising opportunities for market growth in the forecast period. Thus, driving the Procurement Outsourcing market revenue.

The Global Procurement Outsourcing Market Industry is driven by the need for cost efficiency among organizations. By outsourcing procurement functions, companies can reduce operational costs significantly. For instance, businesses can save up to 30 percent on procurement expenses by leveraging the expertise of specialized outsourcing firms. This trend is particularly evident in sectors such as manufacturing and retail, where cost control is paramount. As the market is projected to reach 3.75 USD Billion in 2024, the emphasis on cost reduction is likely to propel further investments in procurement outsourcing.

Regulatory compliance is a critical driver of the Global Procurement Outsourcing Market Industry. Organizations face increasing pressure to adhere to various regulations and standards, which can complicate procurement processes. By outsourcing these functions, companies can leverage the expertise of specialized firms that are well-versed in compliance requirements. This approach not only mitigates risks associated with non-compliance but also streamlines procurement operations. As regulatory landscapes evolve, the demand for procurement outsourcing is expected to rise, further contributing to the market's growth trajectory.

The Global Procurement Outsourcing Market Industry is projected to experience substantial growth in the coming years. With an anticipated market size of 3.75 USD Billion in 2024, the industry is expected to expand significantly, reaching 15.4 USD Billion by 2035. This growth represents a remarkable CAGR of 13.7 percent from 2025 to 2035. Such projections indicate a robust demand for procurement outsourcing services as organizations increasingly seek to enhance efficiency, reduce costs, and navigate complex supply chains. The market's trajectory suggests a promising future for procurement outsourcing as a strategic business function.

Organizations increasingly recognize the importance of focusing on core competencies, which drives the Global Procurement Outsourcing Market Industry. By outsourcing procurement activities, companies can concentrate on their primary business functions, enhancing overall productivity. This shift allows firms to allocate resources more effectively, leading to improved performance and innovation. For example, technology firms often outsource procurement to streamline operations and enhance their competitive edge. As the market evolves, this trend is expected to contribute to a projected growth to 15.4 USD Billion by 2035, indicating a sustained interest in outsourcing.

Technological advancements play a crucial role in shaping the Global Procurement Outsourcing Market Industry. The integration of artificial intelligence, machine learning, and data analytics into procurement processes enhances efficiency and decision-making. These technologies enable organizations to analyze supplier performance, optimize inventory management, and predict market trends more accurately. As firms adopt these innovations, they are likely to experience increased agility and responsiveness in their procurement strategies. The growing reliance on technology is expected to support the market's expansion, with a projected CAGR of 13.7 percent from 2025 to 2035.

The globalization of supply chains significantly influences the Global Procurement Outsourcing Market Industry. As businesses expand their operations internationally, they encounter complex procurement challenges that require specialized knowledge and resources. Outsourcing procurement functions allows companies to navigate these complexities more effectively, ensuring compliance with local regulations and optimizing supplier relationships. For instance, multinational corporations often rely on procurement outsourcing to manage diverse supplier bases across different regions. This trend is likely to continue driving market growth, as organizations seek to enhance their global procurement capabilities.

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American procurement outsourcing market will dominate due to the increased need to drive efficiency and effectiveness and will boost the market growth in this Region.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: PROCUREMENT OUTSOURCING MARKET SHARE BY REGION 2023 (%)

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

Europe's Procurement Outsourcing market accounts for the second-largest market share because procurement outsourcing is witnessing growth across various verticals, including energy and utilities, healthcare, and life sciences. The increased adoption of procurement outsourcing services in these industries contributes to market expansion. Further, the German Procurement Outsourcing market held the largest market share, and the UK Procurement Outsourcing market was the fastest-growing market in the European Region.

The Asia-Pacific Procurement Outsourcing Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to adoption in the manufacturing vertical. The verticals include retail and consumer goods, manufacturing, IT, and telecommunications. Moreover, China’s Procurement Outsourcing market held the largest market share, and the Indian Procurement Outsourcing market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the Procurement Outsourcing market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The Procurement Outsourcing industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the Procurement Outsourcing industry to benefit clients and increase the market sector. In recent years, the Procurement Outsourcing industry has offered some of the most significant advantages to medicine.

Major players in the Procurement Outsourcing market, including 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)., and others, are attempting to increase market demand by investing in research and development operations.

Robert Atkins formed Atkins Nutritionals, Inc. to promote the Atkins diet's low-carbohydrate packaged meals. It is now a subsidiary of The Simply Good Foods Company. Low-carbohydrate bars shakes, and snacks are available from the company. Atkins Nutritionals, Inc. was formed in 1989 as Complementary Formulations. In 1998, the company was renamed Atkins Nutritionals. It was created to enhance the Atkins diet. Atkins created the plan after reading a research paper in the Journal of the American Medical Association. Alfred W. Pennington published the paper "Weight Reduction" in 1958. Atkins used the study's findings to help him overcome his obesity.

In May 2019,A partnership agreement between Atkins and CHEF'D was signed. Our collaboration sought to create a low-carb meal solution for consumers concerned about their health and lifestyle.

Brunswick Corporation is an American company with a diverse portfolio of products. With over 13,000 employees in 24 countries, Brunswick is involved in inventing, manufacturing, and distributing various products, including boating brands like Sea Ray, Boston Whaler, and Mercury Marine. In June 2019, Brunswick partnered with VIR Zoom to launch the VIR Zoom solution, aiming to enhance the virtual reality experience of Life Fitness' se3 explore bikes. This collaboration has the potential to revolutionize the fitness industry.

Infosys Limited, an Indian multinational IT company, offers business consulting, IT, and outsourcing services. Founded in Pune and headquartered in Bangalore, Infosys recently announced its acquisition of BASE life science in Europe. This strategic move aims to unlock the business potential of life sciences companies by accelerating clinical trials, enhancing drug development, leveraging cloud-first digital platforms and data, and ultimately improving health outcomes.