Procurement Outsourcing

Procurement Outsourcing

Global Procurement Outsourcing Market to Reach US$17.6 Billion by 2030

The global market for Procurement Outsourcing estimated at US$7.0 Billion in the year 2023, is expected to reach US$17.6 Billion by 2030, growing at a CAGR of 14.1% over the analysis period 2023-2030. Business Process Outsourcing Services, one of the segments analyzed in the report, is expected to record a 13.2% CAGR and reach US$10.4 Billion by the end of the analysis period. Growth in the Consulting Services segment is estimated at 15.4% CAGR over the analysis period.

The U.S. Market is Estimated at US$1.9 Billion While China is Forecast to Grow at 18.6% CAGR

The Procurement Outsourcing market in the U.S. is estimated at US$1.9 Billion in the year 2023. China, the world`s second largest economy, is forecast to reach a projected market size of US$3.9 Billion by the year 2030 trailing a CAGR of 18.6% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 10.7% and 12.3% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 11.2% CAGR.

Procurement Outsourcing - Key Trends and Drivers

Procurement outsourcing involves the delegation of a company’s procurement functions to a third-party service provider. This practice allows businesses to focus on their core competencies while leveraging the expertise, technology, and global networks of specialized procurement firms. Procurement outsourcing encompasses a wide range of activities, including strategic sourcing, supplier management, contract negotiation, and purchase order management. Companies adopt procurement outsourcing to achieve cost savings, improve procurement efficiency, and gain access to market intelligence and best practices. By outsourcing procurement, businesses can streamline their supply chains, reduce operating expenses, and enhance overall operational effectiveness, all while ensuring compliance with industry regulations and standards.

In recent years, the procurement outsourcing industry has evolved significantly, driven by advancements in technology and changing business needs. Modern procurement outsourcing firms utilize sophisticated software platforms and data analytics to optimize procurement processes and drive better decision-making. The integration of artificial intelligence (AI) and machine learning (ML) in procurement solutions has enabled more accurate demand forecasting, risk management, and supplier performance evaluation. Additionally, procurement service providers are increasingly offering end-to-end solutions that cover the entire procurement lifecycle, from strategy development to execution and continuous improvement. This comprehensive approach allows businesses to achieve greater visibility and control over their procurement activities, fostering stronger supplier relationships and improving supply chain resilience.

The growth in the procurement outsourcing market is driven by several factors. One of the primary drivers is the increasing pressure on businesses to reduce costs and improve operational efficiency amidst rising competition and economic uncertainty. Technological advancements, particularly in automation and data analytics, have made procurement outsourcing more efficient and effective, enabling service providers to deliver greater value to their clients. The globalization of supply chains has also contributed to market growth, as companies seek to manage complex, multi-tiered supplier networks and mitigate risks associated with geopolitical instability and regulatory changes. Additionally, the growing emphasis on sustainability and ethical sourcing has prompted businesses to seek the expertise of procurement firms that can help them navigate these challenges and achieve their corporate social responsibility (CSR) goals. These factors, combined with the rising demand for strategic procurement capabilities and the need for agility in a rapidly changing business environment, are propelling the expansion of the procurement outsourcing market.

Select Competitors (Total 61 Featured) -

• Accenture PLC
• Capgemini
• Corbus, LLC
• e-Business International Inc.
• Everest Global, Inc.
• Genpact
• GEP
• IBM Corporation
• Infosys BPM Limited
• LBMC Family of Companies
• Premier BPO LLC
• Refteck Solutions USA Inc.
• Tata Consultancy Services Ltd.
• The Hackett Group, Inc.
• Wipro Limited;

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