US Procurement Outsourcing Market Overview
As per MRFR analysis, the US Procurement Outsourcing Market Size was estimated at 791.56 (USD Million) in 2023. The US Procurement Outsourcing Market Industry is expected to grow from 900(USD Million) in 2024 to 3,150 (USD Million) by 2035. The US Procurement Outsourcing Market CAGR (growth rate) is expected to be around 12.063% during the forecast period (2025 - 2035).
Key US Procurement Outsourcing Market Trends Highlighted
The US Procurement Outsourcing Market is witnessing significant growth driven by key market drivers such as the need for cost reduction and improved efficiency. Many companies are opting for procurement outsourcing to streamline their supply chain operations and to access specialized expertise that may not be available in-house. This trend is increasingly crucial as businesses seek to focus on their core competencies while outsourcing non-core functions like procurement. The advent of technology has also played a vital role in transforming procurement processes. Innovations such as artificial intelligence and machine learning are being integrated into procurement activities to enhance decision-making and optimize supply chains.Opportunities to be explored in the US market include the increasing demand for sustainability in procurement practices. Companies are looking for ways to partner with suppliers who demonstrate environmentally friendly practices, thereby aligning their procurement strategies with corporate social responsibility initiatives. Additionally, small to medium-sized enterprises are beginning to recognize the value of procurement outsourcing, opening up additional avenues for service providers to cater to this segment. Recently, trends such as the rise of digital procurement platforms are gaining momentum. These platforms allow for more transparency and better collaboration between companies and suppliers, particularly in the context of the US where regulatory compliance is also a significant consideration.Moreover, as businesses recover from disruptions caused by global events, there is a noticeable shift towards localized sourcing strategies. This trend not only aims to mitigate risks associated with global supply chains but also supports local economies. Overall, the US Procurement Outsourcing Market is evolving, presenting a landscape rich with both challenges and opportunities for companies looking to adapt and thrive.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
US Procurement Outsourcing Market Drivers
Rising Demand for Cost Efficiency
The US Procurement Outsourcing Market Industry is significantly driven by the increasing demand for cost efficiency among organizations. Many companies in the United States are facing pressure to optimize their financial performance amidst fluctuating economic conditions. According to the U.S. Small Business Administration, small and medium-sized enterprises (SMEs) account for 99.9% of all U.S. businesses and often struggle with procurement costs.Outsourcing procurement functions enables these companies to reduce operational costs by up to 30%. Major players like Accenture and Deloitte have been emphasizing their procurement outsourcing services, showcasing how strategic procurement can lead to substantial savings. Additionally, the National Association of Purchasing Managers reported that companies utilizing procurement outsourcing experience faster processes and improved supplier relationships, contributing to overall financial health and operational effectiveness in the U.S.market.
Technological Advancements in Procurement
Technological advancements play a crucial role in the growth of the US Procurement Outsourcing Market Industry. The application of Artificial Intelligence (AI) and blockchain technology is transforming procurement processes, making them more efficient and transparent. The American Institute of CPAs (AICPA) has noted that organizations implementing digital procurement strategies are seeing an increase in process efficiency by up to 40%. Companies like SAP and Oracle are leading the charge in developing procurement solutions that leverage these technologies.As businesses in the U.S. continue to embrace digital transformation, the demand for procurement outsourcing solutions that incorporate these technologies is predicted to rise, driving market growth significantly.
Focus on Core Competencies
A growing focus among companies to concentrate on their core competencies is a significant driver for the US Procurement Outsourcing Market Industry. By outsourcing procurement, companies can allocate more resources to key business areas that drive growth and innovation. Research indicates that organizations can enhance productivity by approximately 25% when they delegate non-core activities, such as procurement, to specialized providers. The Institute for Supply Management has reported that firms increasingly recognize the benefits of engaging with procurement experts to navigate complex supply chains, thereby improving agility and responsiveness.Notable firms like IBM and Infosys are actively promoting procurement outsourcing as a means for businesses to streamline operations and focus on strategic initiatives.
US Procurement Outsourcing Market Segment Insights
Procurement Outsourcing Market Component Insights
The US Procurement Outsourcing Market, particularly within the Component segment, encompasses various critical elements that are driving its evolution and growth in the upcoming years. This segment is bifurcated into two main areas: Solution and Service, each playing a pivotal role in enhancing operational efficiencies for businesses. The Solution aspect focuses on innovative technologies and methodologies that optimize procurement processes. By integrating advanced analytics and cloud-based platforms, organizations are not only saving time but are also improving their decision-making capabilities. Meanwhile, the Service component underlines the critical importance of expert-driven support and consultancy, allowing firms to leverage specialized knowledge and best practices that have become crucial in navigating the complexities of modern procurement challenges. In the context of the US market, the increasing demand for operational efficiency and cost reduction has made these components indispensable. Businesses are seeking robust Solutions that can seamlessly connect their supply chains while providing real-time data insights to drive strategic decisions. Moreover, the Service offerings have been increasingly aligned with the trends of outsourcing specific procurement functions to specialized providers, which can help reduce overhead costs while enhancing service delivery. As a result, companies that adapt to these trends significantly boost their competitive positioning, thus reinforcing the importance of both the Solution and Service elements in the wider landscape of the US Procurement Outsourcing Market. The overarching trend towards digital transformation also presents considerable opportunities within this Component segment, particularly as stakeholders look towards automating routine tasks through innovative Solution frameworks. These shifts are also supported by government initiatives aimed at fostering efficiency and transparency within procurement processes, further solidifying the relevance of these segments. As organizations strive to align their operational practices with evolving market demands, the significance of both Solution and Service components becomes increasingly clear, indicating sustained growth potential and supporting the overall evolution within the US Procurement Outsourcing Market.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Procurement Outsourcing Market Deployment Insights
The Deployment segment of the US Procurement Outsourcing Market plays a crucial role in shaping the overall market landscape. This segment can be categorized primarily into On-Premise and Cloud-based solutions, each offering distinct advantages to organizations. On-Premise solutions provide greater control over data security and compliance, which is highly valued in industries with stringent regulatory requirements. Conversely, Cloud services are gaining traction due to their flexibility, scalability, and cost-effectiveness, which align well with the evolving needs of businesses seeking to enhance operational efficiency.The US Procurement Outsourcing Market revenue has witnessed significant fluctuations, influenced by factors such as digital transformation and the growing emphasis on reducing operational expenses. As companies increasingly adopt hybrid approaches, the market dynamics are shifting, creating opportunities for innovative service models. The rise of e-procurement and automated vendor management further complements these deployment strategies, enabling businesses to streamline processes and improve procurement performance. Overall, this segment is vital for optimizing procurement functions and driving market growth in the US.
Procurement Outsourcing Market Organization Size Insights
The Organization Size segment within the US Procurement Outsourcing Market is characterized by a distinct dynamic that influences market trends and growth drivers. Small and Medium-sized Enterprises (SMEs) play a crucial role by increasingly adopting procurement outsourcing to enhance operational efficiency, reduce costs, and tap into specialized expertise. This segment benefits significantly from tailored solutions that help SMEs scale without the burden of large overheads. On the other hand, Large Enterprises also dominate this landscape due to their vast procurement needs and the complexity of their supply chains.They leverage procurement outsourcing to streamline operations, achieve economies of scale, and innovate procurement strategies. The distinct characteristics of these two organization sizes highlight the versatility of the US Procurement Outsourcing Market. As organizations navigate challenges such as rising operational costs and globalization, opportunities arise through targeted investments in technology and analytics to optimize procurement processes, making this market segment a focal point for various stakeholders. Overall, the segmentation by Organization Size showcases a diverse range of strategies that companies employ to enhance their procurement functions, thus driving the overall growth of the industry.
Procurement Outsourcing Market Vertical Insights
The US Procurement Outsourcing Market is increasingly driven by the growing demand across various verticals, including Banking Financial Services and Insurance (BFSI), Healthcare, and IT and Telecommunication. The BFSI sector plays a pivotal role in the market due to its complex supply chain dynamics and the stringent regulatory environment that necessitates efficient procurement processes. Similarly, the Healthcare sector is demonstrating significant potential as organizations seek to streamline operations, reduce costs, and enhance service quality amidst rising demand for healthcare services.The IT and Telecommunication vertical remains crucial as technological advancements necessitate effective management of procurement to keep pace with rapid innovation and market competitiveness. Each of these sectors contributes to shaping the procurement landscape by driving trends toward digital transformation, cost efficiency, and supplier relationship management. As these verticals evolve, they create both challenges and opportunities, particularly in enhancing procurement strategies to meet diverse operational needs and compliance requirements, thereby expanding the overall US Procurement Outsourcing Market landscape.
US Procurement Outsourcing Market Key Players and Competitive Insights
The competitive landscape of the US Procurement Outsourcing Market is characterized by a growing demand for cost-effective and efficient sourcing solutions. As organizations increasingly look to streamline their procurement processes and enhance operational efficiency, procurement outsourcing has gained traction. Key players in this market are striving to offer innovative solutions that cater to diverse customer needs while emphasizing strategic partnerships, technology integration, and data analytics. The competition is further intensified by the rapid advancements in digital technologies and the evolving expectations of clients, which drive providers to differentiate their offerings and improve service delivery. Analyzing the strategies and capabilities of major companies in this sector can provide vital insights into trends, market dynamics, and positioning.Capgemini is recognized for its strong presence in the US Procurement Outsourcing Market and is well-regarded for its ability to deliver tailored procurement solutions. The company leverages its extensive industry knowledge and experience to help organizations optimize their procurement functions, optimize spend, and achieve significant cost savings. Capgemini's strengths lie in its robust technological capabilities, including the use of advanced data analytics and digital tools that enhance procurement processes. This ability to integrate technology with procurement strategies helps clients improve efficiency and visibility in their supply chains. Additionally, Capgemini has built solid relationships with stakeholders in various industries, allowing it to offer comprehensive services that cater to unique business requirements in the US market.Infosys also holds a notable position within the US Procurement Outsourcing Market, leveraging its broad range of services and innovative solutions to meet customer demands. Known for its transformation capabilities, Infosys focuses on delivering end-to-end procurement services that drive efficiency and effectiveness across supply chains. Key offerings include procurement consulting, supplier management, and spend analysis, supported by proprietary technologies that enhance visibility and insights. The company's strong presence in the US market is bolstered by strategic mergers and acquisitions aimed at expanding its capabilities and enhancing its service portfolio. Additionally, Infosys invests in continuous improvement practices and fosters partnerships with clients to tailor solutions that align with their objectives, reinforcing its strengths in delivering value-driven procurement outsourcing services in the region.
Key Companies in the US Procurement Outsourcing Market Include
- Capgemini
- Infosys
- Cognizant
- Xchanging
- Wipro
- Proxima
- Jaggaer
- IBM
- BirchStreet
- Genpact
- TCS
- BuySight
- Coupa
- Accenture
- GEP
US Procurement Outsourcing Market Industry Developments
In recent months, the US Procurement Outsourcing Market has experienced significant developments. Notably, Capgemini has announced enhanced investment in digital procurement capabilities aimed at streamlining operational efficiencies. In September 2023, IBM expanded its procurement services through a strategic partnership with Coupa, focusing on integrating AI-driven analytics to improve supply chain transparency. Meanwhile, Infosys has been performing strongly, with an estimated market valuation growth of 10% as it continues to innovate within its procurement frameworks over the past two years. The trend of companies like Cognizant and Genpact prioritizing automation in procurement processes reflects a substantial shift in the market evolution, driven by the necessity for cost efficiencies. Additionally, TCS has initiated a merger opportunity with Proxima, enhancing its service portfolio, which was publicly addressed in August 2023. Furthermore, Jagger's recent technological enhancements are aimed at further optimizing procurement strategies for clients, emphasizing, the growth trajectory within the sector remains robust. Additionally, the US procurement landscape continues to be influenced by regulatory changes emphasizing compliance, particularly for government contracting, highlighting the need for organizations to strategically adapt their procurement practices accordingly.
US Procurement Outsourcing Market Segmentation Insights
Procurement Outsourcing Market Component Outlook
Procurement Outsourcing Market Deployment Outlook
Procurement Outsourcing Market Organization Size Outlook
- Small and Medium-sized Enterprises (SMEs)
- Large Enterprises
Procurement Outsourcing Market Vertical Outlook
- Banking Financial Services and Insurance (BFSI)
- Healthcare
- IT & Telecommunication
Report Attribute/Metric Source: |
Details |
MARKET SIZE 2018 |
791.56(USD Million) |
MARKET SIZE 2024 |
900.0(USD Million) |
MARKET SIZE 2035 |
3150.0(USD Million) |
COMPOUND ANNUAL GROWTH RATE (CAGR) |
12.063% (2025 - 2035) |
REPORT COVERAGE |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
BASE YEAR |
2024 |
MARKET FORECAST PERIOD |
2025 - 2035 |
HISTORICAL DATA |
2019 - 2024 |
MARKET FORECAST UNITS |
USD Million |
KEY COMPANIES PROFILED |
Capgemini, Infosys, Cognizant, Xchanging, Wipro, Proxima, Jaggaer, IBM, BirchStreet, Genpact, TCS, BuySight, Coupa, Accenture, GEP |
SEGMENTS COVERED |
Component, Deployment, Organization Size, Vertical |
KEY MARKET OPPORTUNITIES |
Cost reduction initiatives, Enhanced supplier collaboration, Sustainable procurement practices, Digital transformation adoption, Analytics-driven decision-making |
KEY MARKET DYNAMICS |
cost efficiency, supplier relationship management, technological advancements, risk mitigation, increased focus on core competencies |
COUNTRIES COVERED |
US |
Frequently Asked Questions (FAQ) :
The US Procurement Outsourcing Market is expected to be valued at 900 million USD in 2024.
By 2035, the market is anticipated to reach a value of 3,150 million USD.
The US Procurement Outsourcing Market is projected to experience a CAGR of 12.063% from 2025 to 2035.
In 2024, the Service segment has a higher initial value at 550 million USD, compared to the Solution segment at 350 million USD.
The Solution segment is expected to be valued at 1,300 million USD by 2035.
Major players in the market include Capgemini, Infosys, Cognizant, Wipro, and Accenture.
The Service segment is anticipated to reach a value of 1,850 million USD by 2035.
The market growth rate is consistently strong across regions, reflecting a robust demand for procurement outsourcing solutions.
Key trends include increased reliance on technology, emphasis on cost reduction, and the shift towards strategic outsourcing.
Challenges include adapting to rapidly changing technologies and navigating complex supplier relationships.