The procurement outsourcing has emerged as a crucial alternative for businesses looking to improve their supply chain operations and streamline their procurement processes. The activity of delegating the procurement function to external service providers who specialize in sourcing, supplier management, contract negotiations, and other related tasks is known as procurement outsourcing. The procurement outsourcing has grown significantly in recent years, owing to reasons such as globalization, increased supply chain complexities, and the demand for cost reduction and operational efficiency.
According to SPER market research, ‘Procurement Outsourcing Market Size- By Service, By Component, By Deployment Model, By Enterprise Size, By Application, By Industry Vertical – Regional Outlook, Competitive Strategies and Segment Forecast to 2033’ state that the Procurement Outsourcing Market is predicted to reach USD 13.52 billion by 2033 with a CAGR of 14.53%.
Several significant reasons have contributed to the rise and widespread adoption of the procurement outsourcing market. For starters, globalisation has influenced organisations to outsource their procurement operations. Companies have the task of managing complicated supply chains and negotiating numerous regulatory frameworks when they extend their operations across geographies. Outsourcing procurement enables organisations to tap into the experience of service providers with local market knowledge, supplier networks, and an awareness of regional legislation, allowing them to overcome these problems and efficiently manage their global sourcing needs.
The procurement outsourcing business is fraught with difficulties. The possible loss of control and visibility over the procurement process is one of the most significant obstacles. Companies may be hesitant to delegate purchasing choices and supplier relationships to third-party vendors, fearing a loss of strategic control and the ability to match procurement activities with their specific business objectives.
Impact of COVID-19 on Global Procurement Outsourcing Market
The COVID-19 epidemic has had a significant impact on procurement outsourcing in terms of both constraints and opportunities. On the one hand, the disruption caused by the pandemic has highlighted the importance of resilient and flexible supply chains, resulting in a stronger emphasis on risk management and supply chain diversification. This has created opportunities for procurement outsourcing providers to offer their expertise in minimising supply chain disruptions, discovering alternative supply sources, and enhancing supplier relationship management. Additionally, the pandemic has accelerated the use of digital procurement technology such as e-procurement platforms, digital collaboration tools, and remote working capabilities.
Global Procurement Outsourcing Market Key Players:
Geographically, Procurement outsourcing is a global phenomenon, with adoption and demand spanning across various regions. While the market is prevalent worldwide, there are specific regions that have witnessed significant growth and activity in procurement outsourcing. North America, particularly the United States, has been a key region for procurement outsourcing. The region’s robust economy, presence of multinational corporations, and focus on cost reduction and operational efficiency have driven organizations to outsource their procurement functions. The United States has a mature procurement outsourcing market, with a wide range of service providers offering comprehensive solutions to meet the diverse needs of businesses. Additionally, some of the market key players are Accenture Plc., Capgemini SE, DXC Technology Company, Genpact Ltd., GEP, Infosys Ltd., International Business, Machines Corporation, Tata Consultancy Service Limited., Wipro Limited., WNS Limited.
Procurement Outsourcing Market Segmentation:
The SPER Market Research report seeks to give market dynamics, demand, and supply forecasts for the years up to 2033. This report contains statistics on product type segment growth estimates and forecasts.
By Service: Based on the Service, Global Procurement Outsourcing Market is segmented as; Business Process Outsourcing Services, Consulting Services.
By Component: Based on the Component, Global Procurement Outsourcing is segmented as; Solution, Services.
By Deployment Model: Based on the Deployment Model, Global Procurement Outsourcing is segmented as; On-Premises, Cloud.
By Enterprise Size: Based on the Enterprise Size, Global Procurement Outsourcing is segmented as; Large Enterprises, Small Medium Enterprises.
By Application: Based on the Application, Global Procurement Outsourcing is segmented as; Marketing Related Services, IT Related Services, HR Related Services, Facilities Management Office Services, Others.
By Industry Vertical: Based on the Industry Vertical, Global Procurement Outsourcing is segmented as; BFSI, Energy Utilities, Healthcare, IT Telecom, Professional Services, Manufacturing, Retail, Logistics, Others.
By Region: This report also provides the data for key regional segments of Asia-Pacific, Europe, Middle East and Africa, North America, Latin America.
This study also encompasses various drivers and restraining factors of this market for the forecast period. Various growth opportunities are also discussed in the report.
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