Global Procurement Outsourcing Services Market Segmentation, By Service Type (Business Process Outsourcing Services, Consulting Services), Deployment Model (On-Premises and Cloud), Enterprise Size (Large Enterprises and Small & Medium Enterprises), Application (Marketing Related Services, IT Related Services, HR Related Services, Facilities Management & Office Services and Others), End User (Banking, Financial Services, and Insurance (BFSI), Energy and Utilities, Healthcare, IT and Telecom, Professional Services, Manufacturing, Retail, Logistics, Others) – Industry Trends and Forecast to 2032
Procurement Outsourcing Services Market Analysis
The most common actions the company agrees with are often procurement categorization and vendor management of raw materials and services. Outsourcing procurement has a number of advantages, such as freeing up internal staff members' time to concentrate on the company's core operations, enabling higher productivity and efficiency in outsourced tasks, streamlining operations, and lowering total operational expenses.
Procurement Outsourcing Services Market Size
Global procurement outsourcing services market size was valued at USD 4.03 billion in 2024 and is projected to reach USD 11.73 billion by 2032, with a CAGR of 14.29% during the forecast period of 2025 to 2032.
Report Scope and Market Segmentation
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Attributes
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Procurement Outsourcing Services Key Market Insights
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Segmentation
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Countries Covered
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U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America
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Key Market Players
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IBM (U.S.), Broadcom (U.S.), Oracle. (U.S.), Accenture (Ireland), Infosys Limited (India), GEP (U.S.), Genpact (U.S.), Proxima (U.K.), WNS (Holdings) Ltd. (India), Capgemini (France), Wipro Limited (India), HCL Technologies Limited (India), Tata Consultancy Services Limited. (India), DXC Technology Company (U.K.), AEGIS Company. (India), Corbus, LLC. (India), and Aquanima S.A. (Spain) among many others.
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Market Opportunities
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Procurement Outsourcing Services Market Definition
A method of obtaining and managing the raw materials required for the production of a good or the provision of a certain service is known as procurement outsourcing. It facilitates the transmission of crucial information to the outside vendor. The data also contains the actual order and payment for the goods and services. The outsourcing of certain crucial procurement functions, such as vendor management, to a third party lowers total costs and enables businesses to concentrate on their core capabilities.
Procurement Outsourcing Services Market Dynamics
This section deals with understanding the market drivers, advantages, opportunities, restraints and challenges. All of this is discussed in detail as below:
Drivers
- The trend of advanced technologies
During the projected period, the expansion of the procurement outsourcing market will be driven by the implementation of cutting-edge technology to streamline business operations. In order to increase their scalability, flexibility, and lower overall operating costs, businesses are eager to incorporate these technologies. Additionally, commercial operations are becoming automated thanks to artificial intelligence and machine learning.
- Increased focus on cost minimization
Companies are using software as a service to outsource their business processes to a third party company so they may concentrate on their core strengths. This will result in reducing the handling and maintenance costs for the organizations is bolstering the growth rate of the market in a sharp upward direction. This further results in reducing the costs associated with procurement operations and streamline procurement processes
Furthermore, the factors such as rising urbanization, industrialization and mounting need to extract achieve benchmarking during the forecast period are some other important market drivers. Additionally, rise in the need to manage compliance policies and agreements in combination with rising availability of raw materials are anticipated to drive the growth rate of the market.
Opportunities
- Rising demand for efficiency and effectiveness
The growing demand to improve supply chain efficiency and effectiveness is also contributing to the expansion of the market. Additionally, the use of procurement outsourcing is being driven by the requirement to follow regulatory requirements and guarantee compliance.
- Growth and expansion of end user verticals
In the manufacturing, IT, telecom, retail, healthcare, and BFSI industries, procurement outsourcing is frequently employed. As a result, during the anticipated period, the market for procurement outsourcing services is anticipated to grow quickly. The necessity for new IT solutions to be implemented along with current global consumer trends is what primarily drives the demand for procurement outsourcing services.
Restraints/Challenges
- Security concerns and issues
Issues pertaining to data privacy and integrity can hamper the growth rate of the market. Also, it is anticipated that the industry for procurement outsourcing services would not expand globally due to the high risks involved with outsourcing. Various complexity associated with the category management will further worsen the situation.
- Lack of technical expertise
Dearth of expert knowledge and technical expertise and lack of awareness especially in the underdeveloped economies will create hurdles for the market in regards to the smooth growth in the market value. Further, lack of skilled professionals in data science in combination with slow adoption rate in the developing economies will yet again hamper the market growth rate.
This procurement outsourcing services market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the procurement outsourcing services market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.
Procurement Outsourcing Services Market Scope
The procurement outsourcing services market is segmented on the basis of service type, deployment model, enterprise size, application and end user. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
Service Type
- Business Process Outsourcing Services
- Category Management
- Source Management
- Procurement Management
- Supplier Management
- Procure to Pay
- Consulting Services
Deployment Model
- On-Premises
- Cloud
Enterprise Size
- Large Enterprises
- Small & Medium Enterprises
Application
- Marketing Related Services
- IT Related Services
- HR Related Services
- Facilities Management & Office Services
- Others
End User
- Banking, Financial Services, and Insurance (BFSI)
- Energy and Utilities
- Oil & Gas
- Power Generation
- Water
- Healthcare
- Pharmaceuticals
- Biotechnology
- IT and Telecom
- Professional Services
- Manufacturing
- Automotive
- Consumer Goods
- Industrial
- Electronics
- Retail
- Logistics
- Others
- Defence
- Paper & Pulp
Procurement Outsourcing Services Market Regional Analysis
The procurement outsourcing services market is analyzed and market size insights and trends are provided by country, service type, deployment model, enterprise size, application and end user as referenced above.
The countries covered in the procurement outsourcing services market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.
North America dominates the procurement outsourcing services market due to the presence of established economies such as U.S. and Canada and presence of the large base of customers using these services. Prevalence of advanced IT infrastructure is another important factor determining the dominance of this region.
Asia-Pacific region is showing a promising potential and therefore, is set to grow with the highest growth rate during the forecast period. This is because of the growing adoption by the manufacturing industry in the region and growing number of small and medium scale enterprises.
The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.
Procurement Outsourcing Services Market Share
The procurement outsourcing services market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to procurement outsourcing services market.
Procurement Outsourcing Services Market Leaders Operating in the Market Are:
- IBM (U.S.)
- Broadcom (U.S.)
- Oracle. (U.S.)
- Accenture (Ireland)
- Infosys Limited (India)
- GEP (U.S.)
- Genpact (U.S.)
- Proxima (U.K.)
- WNS (Holdings) Ltd. (India)
- Capgemini (France)
- Wipro Limited (India)
- HCL Technologies Limited (India)
- Tata Consultancy Services Limited. (India)
- DXC Technology Company (U.K.)
- AEGIS Company. (India)
- Corbus, LLC. (India)
- Aquanima S.A. (Spain)
Latest Developments in Procurement Outsourcing Services Market
- SynOps, a human-machine controlled engine that makes use of data, advanced analytics, and Artificial Intelligence (AI), was introduced by Accenture in January 2019. It enables enterprises to accomplish intelligent operations across core business processes. These activities include marketing, procurement, and finance and accounting.
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