The study takes a closer look at the major economic turmoil, with a focus on the recent COVID-19 pandemic disruptions.
The global procurement as a service market is expected to reach USD 9 billion by 2025 at a CAGR of 8.9%.
Currently, most of the global industries rely on procurement models which bundles various services such as supply chain management, budget development, distributive management, quality control, and others into one stream. Most of today’s procurement models are implemented with fixed-cost engagements based on long-term procurement processes. This results in reduced efficiency and a concurrent loss in profitability of the enterprise, especially for large businesses as this static model is outdated in today’s dynamic economic landscape.
An increasing reliance on the e-procurement industry as well as a very dynamic economic landscape has necessitated a complete overhaul of the global procurement market. This overhaul can be applied across industry verticals and components. Now, businesses will pay for what they need and use, with unnecessary bundling of activities being eliminated.
Wal-Mart and Amazon consistently outperform SMEs and local retail outlets due to their cutting-edge global procurement services. The same methodology is being applied to all companies to enhance profits and productivity while simultaneously reducing redundancy.
Pan-industry applicability with unique solutions for all business verticals and components.
- Strategic Sourcing: The largest market in this segment, efficient strategic sourcing benefits all industries, particularly SMEs.
- Spend Management: The fastest-growing segment. Mid-sized and large-scale enterprises can enhance profitably by doing away with redundant and inefficient spending. This is driving this segment.
- Category Management: Extremely beneficial to the retailing industry, category management is crucial for the efficient development of retailers, especially e-based retailers.
- Process Management: Process management becomes critical in direct proportion to the size of the enterprise. Realigning core products and services offered by a business is essential in the dynamic market of today.
- Transaction Management: A very important segment considering that virtually the entire business community places huge reliance on IT and this segment organizes the IT from a business perspective.
By Organization Size
- Large Enterprises: The largest segment due to the sheer size of large-scale businesses and the amount of overhaul that procurement services can provide for them.
- SMEs: the fastest-growing segment, SMEs stand to benefit due to the procurement service’s unique solutions offered for each individual enterprise.
- BFSI: This segment benefits hugely from the implementation of transactions management and strategic sourcing.
- Government & Defense: Government and defense can be considered as huge enterprises, and consequently, they will benefit hugely from optimal process and spending management. Budget development is another key area.
- IT & Telecom: dynamic industry, IT & telecom stand to benefit from the flexibility that efficient procurement services can afford them. A very large market segment.
- Healthcare: Healthcare and pharmaceuticals enhance their profitability with efficient category and spend management.
- Retail: The second-largest market share in this segment, the retail sector benefits from category and spend management.
- Manufacturing: The largest segment due to the intrinsic industry requirement to have a very dynamic spend and category management system. Manufacturers of multiple products also benefit from updated strategic sourcing.
- Energy & Utilities: Strategic sourcing and budgeting are areas where procurement services can aid this sector.
- Travel & Hospitality: This segment relies on excellent competitive analysis.
- Others: Virtually all enterprises can benefit from an efficient and unique procurement service.
- North America: The largest regional market due to a very well-developed IT sector.
- Europe: The second-largest market due to the percolation of procurement services through all industry verticals and enterprises of all sizes.
- Asia-Pacific: The fastest emerging market due to rapid economic development.
- Rest of the World: A small market segment, replete with islands of aggressive growth, especially in Latin America and the Middle East.
- CA Technologies
- Xchanging Solutions Ltd
- Tata Consultancy Services Limited
- HCL Technologies Ltd
- WIPRO Limited
- IBM Corporation
- Capgemini SE
- WNS Global
- Proxima Procurement Ltd
- Genpact LLC
- Infosys Ltd
- Accenture Plc
More Information : https://www.marketresearchfuture.com/reports/procurement-service-market-8293
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