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Procurement Outsourcing Market Overview
Procurement Outsourcing Market is projected to grow from USD 3.75 Billion in 2024 to USD 10.47 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 13.70% during the forecast period (2024 - 2032). Additionally, the market size for Procurement Outsourcing was valued at USD 3.30 billion in 2023.
The key market drivers enhancing market growth are the increased need to drive efficiency and effectiveness and growing adoption across various verticals, including energy and utilities, healthcare, and life sciences.
Figure 1: Procurement Outsourcing Market Size, 2023-2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Procurement Outsourcing Market Trends
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.
Procurement Outsourcing MarketSegment Insights
Procurement Outsourcing Component Solution Insights
The Procurement Outsourcing market segmentation, based on component solutions, includes solutions and services. The solution segment dominated the market because organizations are increasingly outsourcing their procurement activities to specialized service providers to optimize costs, improve efficiency, and enhance their focus on core business operations. Procurement solutions offer comprehensive tools and technologies to streamline procurement processes, manage supplier relationships, ensure compliance, and achieve strategic sourcing objectives.
Figure 2: Procurement Outsourcing Market, by Component Solution, 2023 & 2032 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Procurement Outsourcing Deployment Insights
Based on Deployment, the Procurement Outsourcing market segmentation includes on-premise and Cloud. The dominance of the cloud segment in the procurement outsourcing market can be attributed to its inherent benefits, such as scalability, flexibility, cost-effectiveness, and ease of implementation. Cloud-based solutions enable organizations to access procurement services and data seamlessly, anytime and anywhere, using any device, providing convenience and accessibility.
Procurement Outsourcing Organization Size Insights
Based on organization size, the Procurement Outsourcing market segmentation includes small and medium-sized enterprises (SMEs) and large enterprises. The large enterprise segment dominated the market because large enterprises typically have more complex procurement needs, higher transaction volumes, and larger budgets, making outsourcing a more viable option for them. Large enterprises often have diverse supplier networks, operations, and the need for specialized procurement expertise.
Procurement Outsourcing Vertical Insights
Based on Vertical, the Procurement Outsourcing market segmentation includes banking, financial services and insurance (BFSI), healthcare, IT & Telecommunication. The dominance of the banking, financial services, and insurance (BFSI) segment in the procurement outsourcing market is driven by its complex procurement requirements, such as regulatory compliance, risk management, and cost optimization. The BFSI industry relies on robust procurement solutions to address these specific needs.
Procurement Outsourcing Regional Insights
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 2: PROCUREMENT OUTSOURCING MARKET SHARE BY REGION 2023 (%)
Source: Secondary Research, Primary Research, MRFR 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.
Procurement Outsourcing Key Market Players& Competitive Insights
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.
Key CompaniesIn The Procurement Outsourcing Market Include
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Accenture (Ireland)
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GEP (US)
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e-Business International Inc. (US)
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IBM Corporation (US)
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Tata Consultancy Services (India)
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Infosys Limited (India)
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Capgemini (France)
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Genpact (US)
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Wipro Limited (India)
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WNS (Holdings) Ltd. (India)
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Corbus LLC (US)
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HCL Technologies Limited (India)
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Aquanima S.A. (Spain)
Procurement Outsourcing Industry Developments
Tata Consultancy Services has been named a Leader in the PEAK Matrix® for Procurement Outsourcing by Everest Group for 2023. TCS offers a wide range of services and skills to assist clients with their transition to digital procurement. It notes that TCS has created a strong digital ecosystem for procurement that consists of both in-house products like its cognitive intelligence platform ignioTM and its cloud-based S2P platform TAPTM as well as third-party suppliers like best of breed platform providers and others.
July 2022: Infosys announced an agreement to acquire BASE life science in Europe to realize the life sciences companies' business value from speed-up clinical trials, scale drug development, cloud-first digital platforms and data, and achieving better health outcomes.
September 2022: Accenture PLC announced the acquisition of Sentia’s businesses in Belgium, Bulgaria, and the Netherlands, bolstering the company's capabilities to provide end-to-end cloud infrastructure services across private, public, and sovereign clouds.
Procurement Outsourcing Market Segmentation
Procurement Outsourcing By Component Solution Outlook
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Solution
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Service
Procurement Outsourcing By Deployment Outlook
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On-Premise
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Cloud
Procurement Outsourcing By Organization Size Outlook
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Small and medium-sized enterprises (SMEs)
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Large enterprises
Procurement Outsourcing By Vertical Outlook
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Banking Financial Services and Insurance (BFSI)
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Healthcare
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IT & Telecommunication
Procurement Outsourcing Regional Outlook
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North America
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US
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Canada
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Europe
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Germany
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France
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UK
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Italy
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Spain
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Rest of Europe
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Asia-Pacific
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China
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Japan
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India
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Australia
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South Korea
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Australia
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Rest of Asia-Pacific
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Rest of the World
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Middle East
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Africa
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Latin America
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