According to a new market report titled Procurement Outsourcing Services Market -Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2018 – 2026 published by Transparency Market Research the global procurement outsourcing services market is expected to reach US$ 8,050.6 Mn by 2026, from US$ 2,819.2 Mn in 2017, expanding at a CAGR of 12.7% from 2018 to 2026. According to the report, the global market is expected to continue to be influenced by a range of macroeconomic and industry-specific factors. North America is anticipated to continue to be at the forefront in generating demand for procurement outsourcing services, with the market in the region estimated to expand at a CAGR of 12.7% during the forecast period. Technological advancements, increased digitization, and presence of a large number of procurement outsourcing services providers in the region are anticipated to drive the procurement outsourcing services market in North America.
Manufacturing and BFSI industries and stringent regulatory guidelines to drive the global procurement outsourcing services market
Increase in adoption of new IT solutions with modern consumer trends in different organizations and rise in emphasis on business process automation are expected to boost the growth of the procurement outsourcing services market in the next few years. Moreover, increase in demand for procurement services from the manufacturing and BFSI industries is expected to fuel the growth of the market in the near future. Companies are increasingly adopting procurement outsourcing services, which are outsourced by third-party vendors, to reduce their operational costs and increase their revenues. This is likely to propel the growth of the market during the forecast period.
In terms of growth, both North America and Europe are mature markets for procurement outsourcing services due to high awareness about the services among users and rising number of service providers in the region. The procurement outsourcing services market in Asia Pacific is expected to expand at a robust pace during the forecast period. Rise in penetration of technology as well as significant investments for optimal utilization of procurement software and services across countries such as the U.S., U.K., Germany, France, China, India, and Brazil are anticipated to offer lucrative opportunities to the procurement outsourcing services providers in the near future.
Scope of the report
Based on type, the global procurement outsourcing services market has been segmented into business process outsourcing services and consulting services. The business process outsourcing services segment held significant market share and is anticipated to remain dominant over the forecast period. The consulting services segment is anticipated to expand at a significant pace during the forecast period due to rise in adoption of procurement services across end-user industries. Procurement process helps companies save on significant capital. These savings can arise from risk assessment, material purchase, and superior supplier selection. Consulting services include supply risk management, opportunity assessment, procurement transformation, M&A services, and strategic cost management. Cost reduction, the key objective of chief procurement officers (CPOs) across end-user industries, is a key driver of the global procurement consulting services market.
The business process outsourcing services segment has been further divided into category management, source management, procurement management, supplier management and procure to pay. The category management sub-segment accounted for a prominent share of the global market in 2017, followed by the source management sub-segment. The procure to pay sub-segment is expected to grow rapidly during the forecast period due to increasing adoption of PO management, spot buy / tactical buy, catalog development & management, master data management, and centralized procurement service desk among various end-user industries. The report includes analysis of the procurement outsourcing services market by region, segmented into North America, Europe, Asia Pacific, Middle East & Africa, and South America.
This post was originally published on Food and Beverage Herald