How Has the Procurement Outsourcing Market Size Evolved in Recent Years?
The procurement outsourcing market has seen considerable growth due to a variety of factors.
• The market size of procurement outsourcing has surged considerably in the past few years. The forecast predicts it will escalate from $4.78 billion in 2024, reaching $5.52 billion in 2025, representing a compound annual growth rate (CAGR) of 15.5%.
Factors such as cost effectiveness, focus on core competencies, globalization, risk management, and flexible resource allocation have contributed to this growth during the historic period.
What Are The Predictions for The Procurement Outsourcing Market in the Coming Years?
The procurement outsourcing market is expected to maintain its strong growth trajectory in upcoming years.
• The outsourcing market for procurement is anticipated to witness a rapid expansion in the coming years. It is predicted to reach a value of $9.02 billion in 2029, reflecting a compound annual growth rate (CAGR) of 13.1%.
The projected growth in this period is ascribed to factors such as strategic sourcing, sustainability and csr, resilience planning, the requirement for specialized skills, and data security and compliance. Key trends expected during this period encompass digital transformation, advancements in technology, agile and flexible models of procurement, data analysis and business intelligence, with a keen focus on strategic sourcing.
Which Drivers Are Accelerating Growth In The Procurement Outsourcing Market?
The expansion of the e-commerce sector is anticipated to motivate the advancement of the procurement outsourcing market. E-commerce, synonymous with electronic commerce, signifies the online trade of goods and services. In this realm, procurement outsourcing takes the role of managing supplier contracts, ensuring adherence to norms and seeking chances for renegotiation. For example, as reported by Boston Consulting Group Inc., a reputable management consulting firm in the US, e-commerce transactions witnessed a 3% boost in Europe, and a 7% hike in the US and Asia in October 2023. Furthermore, the global e-commerce market is poised to see an annual growth of 9% by the year 2027. Thus, the rising wave of e-commerce serves as a potential catalyst for the growth of the procurement outsourcing market.
Procurement Outsourcing Market Driver: Swift Urbanization Amplifying Market Demand
What Are The Core Segments Of The Global Procurement Outsourcing Market?
The procurement outsourcing market covered in this report is segmented –
1) By Component: Solution, Services
2) By Deployment: On-Premises, Cloud
3) By Enterprise Size: Large Enterprises, Small And Medium Enterprise
4) By Industry Verticals: Banking, Financial Services, And Insurance (BFSI), Energy And Utilities, Healthcare, IT And Telecom, Professional Services, Manufacturing, Retail, Logistics, Other Industry Verticals
Subsegments:
1) By Solution: Procurement Software Solutions, Supplier Management Solutions, E-Sourcing And E-Procurement Solutions, Procurement Analytics And Reporting Tools, Spend Management Solutions
2) By Services: Strategic Sourcing Services, Supplier Relationship Management Services, Procurement Operations Management, Purchase Order And Invoice Management Services, Procurement Consulting And Advisory Services, Contract Management Services, Procurement Process Outsourcing (PPO)
Pre-Book The Procurement Outsourcing Global Market Report 2025 Report For Swift Delivery And Comprehensive Insights:
What Emerging Trends Are Influencing The Growth Of The Procurement Outsourcing Market?
The procurement outsourcing market's leading companies are concentrating on technological progress like artificial intelligence (AI) to boost procurement processes, enhance decision-making, and promote cost effectiveness. AI's technological field is designed to create machines capable of performing tasks necessitating human-like intelligence, such as comprehension, problem-solving, and identifying patterns. For example, Acquire BPO, a business process outsourcing firm based in Australia, launched Acquire.AI in July 2024. Acquire.AI delivers customized AI solutions to boost business productivity and customer experiences, facilitating across-the-board AI adoption in diverse sectors and fueling growth and operational enhancements.
Who Are the Key Players In The Procurement Outsourcing Market?
Major companies operating in the procurement outsourcing market report are:
• Microsoft Corporation
• Siemens AG
• General Electric Company
• Accenture PLC
• International Business Machines Corporation
• Ernst & Young LLP
• SAP SE
• Tata Consultancy Services Limited
• Capgemini SE
• Cognizant Technology Solutions Corporation
• Infosys Limited
• DXC Technology Company
• Wipro Limited
• HCL Technologies Limited
• Rockwell Automation Inc.
• CGI Inc.
• Concentrix Services India Private Limited (CSIPL)
• GEP Worldwide
• WNS Denali
• JAGGAER
• Corbus LLC
• Aquanima SA
• Xchanging Solutions Limited
• Intetics Inc.
• Aegis One Consults Ltd.
What Are The Regional Insights Into The Procurement Outsourcing Market?
North America was the largest region in the procurement outsourcing market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the procurement outsourcing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
