Procurement as a service Market by Component (Strategic Sourcing, Spend Management, Category Management, Process Management, Contract Management, and Transactions Management), Vertical, Organization Size, and Region - Global Forecast to 2024
The growing demand to improve procurement operations and need to reduce the cost associated with procurement among the organizations to drive the market growth
The global procurement as a service market size is expected to grow from USD 5.4 billion in 2019 to USD 7.8 billion by 2024, at a Compound Annual Growth Rate (CAGR) of 7.6% during the forecast period. The procurement as a service market is driven by various factors, such as growing need to handle compliance polices and contracts, growing demand among enterprises to streamline the procurement processes. However, the integration issues with the legacy systems can hinder the growth of the market.
Spend management segment to grow at the highest CAGR during the forecast period
Spend includes analyzing companies spending patterns, spend categorization/spend classification, spend data management, and spend performance management. Effective spend management helps a company ensure that supplier data is kept up to date so that procurement executives are empowered with the right information, and supplier databases throughout a company are integrated to avoid duplication of suppliers. It also involves identifying where procurement inefficiencies exist and the correction of these inefficiencies. Key activities within spend management include spend monitoring and analysis, spend planning and disbursement, and buyer management.
Retail and consumer packaged goods vertical to grow at the highest CAGR during the forecast period
With time, many retail organizations have deployed a mix of technologies, computer systems, and disparate applications to cater to the growing demands of customers. Customer experience proves to be a very vital differentiating factor among a wide array of online shopping options. To improve their performance and achieve higher profits, it is important to have skilled employees and offer the best-in-class offerings through touch points, such as stores and web or mobile applications. Hence, retailers across the globe are formulating data-driven strategies for targeting more customer with a better convergence rate. Procurement as a service helps retailers in streamlining the procurement process and also enables them to reduce the overall procurement cost.
Small and Medium-sized Enterprises (SMEs) segment to grow at a higher growth rate during the forecast period
The SMEs segment is expected to grow at a higher CAGR in the procurement as a service market during the forecast period. More than larger enterprises, the SMEs face a greater resource crunch and require better methods to solve the complexities for cost optimization on their assets and requirements. Therefore, these days, the SMEs are majorly focusing on utilizing the procurement as a service to work globally and manage multiple suppliers.
Asia Pacific (APAC) to record the highest growth rate during the forecast period
APAC is expected to grow at the highest CAGR during the forecast period. The rapid digital transformation in the region has increased the need for procurement outsourcing services. Procurement as a service enables enterprises to free up their procurement departments and also to improve the efficiency of the overall procurement process. Australia and New Zealand (ANZ), India, and China have emerged as the undisputed leaders in the procurement as a service market. North America is projected to hold the largest market size during the forecast period.
In-depth interviews were conducted with the Chief Executive Officers (CEOs), marketing directors, other innovation and technology directors, and executives from various key organizations operating in the procurement as a service market.
By company type: Tier 1 - 42%, Tier 2 - 38%, and Tier 3 - 20%
By designation: C-level executives- 40%, Director Level - 35%, and Others - 25%
By region: North America - 35%, Europe - 27%, APAC - 23%, RoW - 15%
Major vendors offering procurement as a service vendor includes Accenture (Ireland), Infosys (India), GEP (US), Genpact (US), Proxima (UK), WNS (India), Capgemini (France), IBM (US), Wipro (India), HCL Technologies (India), TCS (India), Xchanging (UK), Aegis (India), Corbus (India), and CA Technologies (US).. The study includes an in-depth competitive analysis of the key players in the procurement as a service market, along with their company profiles, recent developments, and key market strategies.
The market study covers the procurement as a service market size across segments. It aims at estimating the market size and growth potential of this market across different segments, such as components, organization size, verticals, and regions. The study also includes an in-depth competitive analysis of the key players in the market, along with their company profiles, key observations related to product and business offerings, recent developments, and key market strategies.
Key benefits of buying the report
The report would provide the market leaders/new entrants in this market with information about the closest approximations of the revenue numbers for the overall procurement as a service market and its subsegments. The report would help stakeholders understand the competitive landscape, gain more insights to position their businesses better, and plan suitable go-to-market strategies. It also helps stakeholders understand the pulse of the market and provides them with information about key market drivers, restraints, challenges, and opportunities.
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