The sudden challenges created by the ongoing COVID-19 are captured effectively to exhibit the long term growth projections in the MRFR report on Procurement as a Service Market. The growth sectors of the Procurement as a Service Market are identified with precision for a better growth perspective.
According to MRFR, the Global Procurement as a Service Market is poised to reach USD 9 Billion by 2025 at a CAGR of 8.9%.
There is expected to be a rising need to improve the procurement role, coupled with increasing penetration of advanced technologies across various vertical industries, to fuel market growth. Supply chains worldwide are modernizing processes to ensure productivity and enhance business operations in a highly competitive environment. Given that the supply chain is a key component in the manufacturing sector, it is expected to drive high demand for procurement as a feature of operation to sustain competition in the industry. Over the last few years, awareness among organizations about the procurement process has increased. Service providers are making continuous efforts to move their market models to the "as-a-service" model with the introduction of personalized offers. As customers are more conscious in their respective business of advanced procurement functions, they are expected to search for providers that deliver a comprehensive procurement service model.
Increasing awareness among SMEs about using procurement as a service to eliminate expenditure related to technology deployment and employee contracting is increasing. The need to handle complex procurement contracts reinforces the growth of procurement as a service within big companies. The major corporations are moving quickly towards procurement as a commodity to reduce operational costs and remove their complexities. In addition, companies that work in multiple verticals embrace procurement as a business model to increase their flexibility and performance. Integration problems with legacy systems, however, are one major factor expected to hinder business growth.
Growing demand for supply chain cost-efficiency and the need for shorter production times are key factors driving market growth. Vertical manufacturing was an early adopter of outsourcing of procurement through the non-core spending. Usually manufacturing focuses on developing and investing in a supply chain organization that addresses direct inputs and raw materials. Adopting the procurement process in a retail environment will help streamline processes as well as maximize overall return on investment. In addition, the advent of machine learning and artificial intelligence in procurement has created opportunities for an organization to cut operating costs , maximize efficiency and accelerate productivity gains. In addition , greater acceptance of analytical tools is anticipated to boost the procurement process and thus drive business growth.
By Component, the market has been segmented into strategic sourcing, spend management, category management, process management, and Transaction Management.
By Organization Size, the market has been bifurcated into SMEs, and large enterprises.
By Vertical, the market has been segmented into BFSI, government and defense, IT and telecom, healthcare, retail, manufacturing, energy and ultilities, travel and hospitality, and others.
The major market players operating in the global market as identified by MRFR are Accenture Plc, Infosys Ltd, GEP, Genpact LLC, Proxima Procurement Ltd, RFCODE, WNS Global, Capgemini SE, IBM Corporation, Xchanging Solutions Ltd, WIPRO Limited, HCL Technologies Ltd, Tata Consultancy Services Limited, and CA Technologies.
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