The global procurement service market is valued at USD 4.93 billion in 2018 and is rising at a CAGR of 8.9% with a forecast of USD 9 billion by 2025.
All enterprises utilize procurement services and have traditionally managed them in-house. The changing economic landscape with its emphasis on e-procurement, supply chain management, and efficient p2p systems has made it more cost-effective to outsource these services to businesses dedicated to providing procurement solutions.
As this industry grows, it becomes more cost-effective for all businesses to avail procurement services and that is a big factor in this market’s growth.
An excellent supporting infrastructure is provided by various IT companies who have expanded their profile to offer procurement services with the largest enterprises setting up their own procurement service units.
An increasing number of enterprises outsourcing all their procurement services related requirements to third-party vendors leading to rapid market growth.
- Strategic Sourcing: The largest market by segment. Strategic sourcing overlooks the collation of information pertinent to an organization to maximize its profitability. It is utilized by all the industries across sectors.
- Spend Management: This is the fastest-growing segment. Spend management is critical for BFSIs, utilities, and healthcare, among others. Spend management analyzes the entire spending profile of an organization to make it more streamlined and cost-efficient.
- Category Management: Category management is what has allowed Wal-Mart and Amazon to dominate the retail sector. Category management benefits businesses of all sizes and with its sphere of application encompassing virtually all industries, this segment is slated to grow.
- Process Management: With an overarching aim to align and attune an organization’s entire machinery to the goals of the organization, process management is an excellent way for an enterprise to shape up and eliminate all wasteful procedures and ventures. Essential for enterprises which offer many services and products.
- Transaction Management: IT, travel, hospitality, and banking place emphasis on transaction management.
By Organization Size
- Large Enterprises: A very large segment, large enterprises often become cumbersome and utilizing procurement services, they can streamline themselves to better their profitability.
- SMEs: Often critical to their survival, procurement services are an excellent way for SMEs to build up profitability and streamline their strategic capabilities.
- BFSI: The BFSI sector is very large but also has intense competition. This segment benefits greatly from the use of procurement as a service due to it ensuring better supplier performance and consequent risk mitigation.
- Government & Defense: Procurement is a vital component in defense due to the critical nature of logistics in the armed forces. Governments benefit from procurement as it helps reduce redundancy in its spending while streamlining its processes and key areas where most governments lose money.
- IT & Telecom: Market intelligence and managing market activities are vital areas to address within the huge and competitive IT and telecom sector. Both these services can be aptly performed by procurement services.
- Healthcare: Spend management and category management are procurement services that greatly benefit the healthcare industry. With most of the enterprises vested in healthcare being digitalized, it is logical for them to now avail of specialized procurement services to further their interests.
- Retail: The impact of using procurement as a service within the retail industry is apparent. Amazon and Wal-Mart have a leading market share due to it. Category management can benefit all retail enterprises of any size, a fact that is causing the growth of this segment within the market.
- Accenture Plc
- Infosys Ltd
- Genpact LLC
About Market Research Future:
At Market Research Future (MRFR), we enable our customers to unravel the complexity of various industries through our Cooked Research Reports (CRR), Half-Cooked Research Reports (HCRR), Raw Research Reports (3R), Continuous-Feed Research (CFR), and Market Research and Consulting Services.
Market Research Future
+1 646 845 9312