The Global Procurement Outsourcing Market Growth Is Accelerated By Strategic Sourcing

 

Procurement Outsourcing Market 

Procurement outsourcing helps organizations focus on core operations while external experts take charge of purchase processes. This provides cost savings through economies of scale and strategic sourcing. Procurement outsourcing manages indirect and direct materials, services and resources needed for primary business functions. It brings effectiveness in supplier discovery, negotiations and ongoing contract administration.

The global Procurement Outsourcing Market is estimated to be valued at US$ 5 Billion in 2023 and is expected to exhibit a CAGR Of 6.5% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends

Strategic sourcing is driving the procurement outsourcing market growth at a rapid pace. It involves careful supplier selection to optimize purchase costs through competitive bidding and leverage consolidated volumes. Strategic sourcing adopts a long term collaborative approach with key suppliers to ensure continuity of supplies. It helps procurement outsourcing providers deliver enhanced value to clients by improving processes, mobilizing savings and managing risks effectively. Suppliers are evaluated based on Total Cost of Ownership rather than just unit prices. Outsourcing experts employ analytics and spend visibility tools to identify cost reduction opportunities across direct and indirect categories. This is helping organizations achieve higher ROI from procurement activities outsourced to third parties.

Segment Analysis

The global procurement outsourcing market is fragmented based on the type of procurement process and end-use industry. Some of the major segments in the market include direct/indirect materials procurement, procurement & supply chain management outsourcing, and strategic sourcing outsourcing. Among these, the direct/indirect materials procurement segment dominates the market as it helps companies optimizing direct and indirect spend, thereby reducing procurement costs.

Key Takeaways

The Global Procurement Outsourcing Market Demand is expected to witness high growth over the forecast period of 2023 to 2030. The global Procurement Outsourcing Market is estimated to be valued at US$ 5 billion in 2023 and is expected to exhibit a CAGR of 6.5% over the forecast period 2023 to 2030.

Regional analysis :

Within North America, the United States dominates the procurement outsourcing market owing to the presence of many large enterprises that are focusing on improving operational efficiency and reducing operational costs by outsourcing support services to third-party procurement outsourcing providers. The trends of cloud adoption and analytics in procurement are also driving market growth in the country.

Key players :

Key players operating in the procurement outsourcing market include Accenture plc, Capgemini SE, DXC Technology Company, GEP, Genpact, HCL Technologies, IBM Corporation, Infosys Limited, Wipro Limited, Tata Consulting Services Limited, and WNS (Holdings) Limited. Accenture plc is one of the leading players in the market with a strong base of dedicated procurement outsourcing capabilities.

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