Procurement Outsourcing Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2017 - 2025
Global Procurement Outsourcing Market: Snapshot
Procurement outsourcing entails transferring certain procurement activities such as category management, sourcing, transaction management, and others. This enables companies to focus better on their core competencies. It also helps them to reduce costs and thus realize bottom-line savings. The different types of services provided by procurement services providers are transactional services, strategic services, and tactical services. Of those, the transactional services pertain to daily buying, including processing purchase orders. Tactical services include spot buys and strategic services include providing end-to-end category management services for non-core spend areas.
Companies can reap massive benefits through procurement outsourcing. For instance they can easily consult a pool of experts who can guide them through matters related to process and policy compliance. This can enable the companies to enhance efficiency by letting them utilize in-house resources for core processes, which would eventually reflect on their bottom lines. But most importantly, it can enable them to cut costs too. Companies have the option to outsource just the non-core and non-core processes. Those typically encompass telecom, marketing, IT, logistics, general and professional services, travel and transportation, and packaging, among others.
A copious number of companies offer procurement outsourcing services to their clients. This makes the landscape fragmented and highly competitive. To survive in such a challenging environment, most companies are seen resorting to innovative strategies. In future, the market is expected to become even more competitive owing to the entry of many more players. Most of them have a solid presence in Europe and North America. However, most of them are also seen eyeing the Asia Pacific market which holds out massive opportunities because of the burgeoning IT and BPO sectors, particularly in the large and developing economies of India and China. Companies are seen pouring money to set shop in the region.
Global Procurement Outsourcing Market: Overview
With respect to numerous associated factors, the global procurement outsourcing market has been thoroughly covered in the report. Various associated elements such as driving factors, prime restraints, competitive analysis, geographical outlook, and latest trends and opportunities, are comprehensively described in the report. The study has been compiled by extensive carrying out extensive primary as well as secondary research. The report also prognosticates the global procurement outsourcing market to depict extensive growth during the forthcoming years, and thus outlines a healthy market potential to exist. Chief market dynamics associated with trends are also covered in the report along with prime challenges faced by competitors.
Global Procurement Outsourcing Market: Market Potential, Trends and Restraints
A rising adoption of IT and BPO processes for improving procurement outsourcing services is primarily driving this market in recent times. A rising number of job opportunities in the corporate BPO and IT sectors is also responsible for increasing the instances where procurement outsourcing services might be required, consequently propelling the market to achieve extensive growth. Many service providers are inclined towards use of automated BPO operations, and this is only possible by facilitating the utilization of quality procurement outsourcing processes.
However, high costs of developing these services are often passed on to the clients in the form of steep fees. This might make them consider cheaper alternatives, consequently restraining the global procurement outsourcing market. Lack of adequate manpower and resources in remote and underdeveloped regions to operate these systems is also hindering the market substantially. Nevertheless, many companies are expected to introduce cost effective solutions soon, which might offset the effects of obstacles faced by the global procurement outsourcing market up to a certain extent in future.
Global Procurement Outsourcing Market: Geographical Outlook
Geography-wise, this market is mainly segmented into North America, South America, Asia Pacific, Europe, and the Middle East and Africa. Of these, Europe and the North America hold leading positions in terms of maximum revenue gained, as compared to revenue attracted by other regions. Such growth has mainly resulted owing to the presence of a strong IT sector in these regions, coupled with extensive presence of procurement outsourcing processes spread across several industries.
However, many players are fast establishing themselves properly in Asia Pacific in order to provide quality procurement outsourcing services. This is mainly because of an increasingly burgeoning IT and BPO sector in key countries such as India and China from Asia Pacific, where use of procurement outsourcing is largely needed. Increasing awareness among the masses to work in this field in Asia Pacific along with a rising number of relevant job opportunities is expected to make this region depict boundless growth in the procurement outsourcing market in future.
Global Procurement Outsourcing Market: Competitive Landscape
Several companies have been providing procurement outsourcing services to their clients since many years, thus forming a substantially strong vendor landscape characterized with a fragmented nature. Most companies are implementing innovative mechanisms to improve the quality of their services. The competition is expected to intensify with numerous players expectd to enter the market on a regular basis in the next few years.
Simplifying IT environment, developing an economical cost structure, and opting for process automation, are key strategies implemented by major players operating in the global procurement outsourcing market. Many companies have invested large sums of money in this market to ensure that the strategies described above help bring in success. HCL, Capgemini, TCS, CGI, Accenture, CSC, HP, Infosys, Optimum Procurement, ATS Group, Proxima, Synise, DSSI, IBM, Aegis, TechMahindra, Corpus, Wipro, Xchanging, WNS, Xerox, Genpact, and GEP, are some of the chief companies present in this market.
This study provides a particularized anatomy according to the L.E.A.P mechanism
The regional analysis offers market assays across:
The study, prepared through the L.E.A.P mechanism adds a dimension of infallibility and assures precise information on all the growth dynamics.
Latest Trends and Cardinal Growth Prospects
The study assists in burnishing the knowledge of the stakeholder in terms of the emerging trends. The study provides an expansive coverage on the latest developments and novel profit-yielding sources that augur well with the market. A dedicated and determined team of experts conduct an out-and-out research on diverse aspects to offer ultimate breakthroughs in the market.
Existing and Future Insights in Growth
The interfusion of ubiquitous primary and secondary research through modern tools invites perfection and accuracy in every aspect. Primary research is circumspectly conducted through exhaustive interactions and interviews of experts. These valuable opinions are then neatly inducted in the report to allow the stakeholder for reaping the benefits. A treasure of secondary data is extracted via famed paid sources, yearly estimates and statements, renowned journals, and government documents. These sources assist in creating a robust database comprising existing and subsequent growth dynamics.
Ascensions in Technology
Diverse technological advancements and cutting-edge innovations in the market have been covered in this study to assist the stakeholder in research and development activities. Recent upgrades have also been added in the study, thus helping the stakeholder to paint the strokes of growth on the canvas of the market.
The study presents a plethora of challenges and obstacles that can hinder the growth of the market to allow the stakeholder to prepare their strategies accordingly.
The world ushered in the new decade with the shadow of the COVID-19 pandemic. The outbreak has damaged the growth prospects of several businesses and has crippled the entire economy. The study is in tandem with the changing dynamics of the market due to the SARS-CoV-2 outbreak. The study focuses on the coronavirus pandemic and analyses every aspect that impacts the growth positively or negatively.
An aerial perspective of the regions covered in this study enables the stakeholder to design strategies accordingly. The 360-degree assessment of every aspect associated with growth offers information on a rainbow of growth opportunities available across the market.
The exhaustive study motivates the stakeholder to take the 'LEAP' of faith and achieve success!
This report is the key to questions such as:
What are the prominent factors that will help in reshaping the market growth?
Which trends have the potential to bring expansive growth for the market?
What are the necessary strategies to overcome the ill-effects of the COVID-19 pandemic?
Which regions will emerge as champion growth contributors for the market?
Which aspects will serve as game-changers for the market?
What are the latest innovations in the market?
Which factors will hinder the growth of the market?
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