SAN FRANCISCO, Nov. 25, 2019 /PRNewswire/ — The global procurement as a service market size is expected to reach USD 9.3 billion by 2025, expanding at a CAGR of 7.3% from 2019 to 2025, according to a new report by Grand View Research, Inc. The rapid proliferation of digital technologies is redesigning business supply chains, and is poised to transform the way procurement function delivers its value. Sourcing and procurement functions normally manage 40 to 80 percent of total organizational spending. This is attributed to the rapid increase in the amount of indirect spending of an organization. Indirect spend is the acquisition of goods and services that are not directly incorporated into a product while manufacturing.
Key suggestions from the report:
- The global procurement as a service market was valued at USD 5.7 billion in 2018 and is projected to register a CAGR of 7.3% over the forecast period
- Based on organization, the large enterprises segment dominated the market in 2018 and will retain its lead through 2025
- On the basis of vertical, the manufacturing segment is anticipated to hold the largest revenue share in the market in 2018
- North America dominated the market in 2018 with over 46.0% of the overall market whereas, the Latin America region is expected to witness the highest CAGR during the forecast period
- Prominent market players include Accenture, Aegis, HCL Technologies Ltd., IBM, GEP, Genpact, Infosys, Wipro, WNS (Holdings) Ltd., and Tata Consultancy Services Limited.
Read 105 page research report with ToC on “Procurement As A Service Market Size, Share & Trends Analysis Report By Component (Strategic Sourcing, Category Management, Contract Management), By Organization, By Vertical, By Region, And Segment Forecasts, 2019 – 2025” at: https://www.grandviewresearch.com/industry-analysis/procurement-as-a-service-market
As businesses are swiftly moving to the cloud, the procurement software providers are updating their offerings to web-based applications. Cloud offers ease, flexibility, and scalability for data, which helps the service provider to reduce the storage costs. This ultimately helps to enhance the business operations and reduce supply chain disruptions as well as strengthen supplier and vendor relationships. Majority of the providers are integrating AI and IoT with their analytics solution. Companies are building IoT platforms with the help of machine learning to identify and address anomalies for fleet management and shipment tracking. This helps in driving operational efficiencies, enhancing the user experience, and increasing the savings. The growing need to provide enhanced user experience and meet the expectations of consumers is leading to high demand for procurement as a service.
The adoption of procurement as a service is higher in large enterprises as compared to the SMEs. The growth is attributed to the growing necessity to manage complex acquisition contracts such as public infrastructure projects. Such deals require expertise and time to deliver enhanced outcomes. Hence, large enterprises are increasingly adopting the service to minimize their operational costs and eliminate complexities. Whereas, the SMEs are witnessing significant growth with the increase in the number of new deals happening in the market.
The adoption of procurement outsourcing is gaining traction across all sectors and industry verticals. The manufacturing sector has been an early adopter of purchase outsourcing across non-core spend. The emphasis of procurement as a service in manufacturing, typically tends to be on creating and investing in a supply chain organization targeting direct inputs and raw materials. As a result, the adoption of procurement as a service has potentially benefited the manufacturing businesses by reducing their supply chain costs and achieving shorter production times.
Grand View Research has segmented the global procurement as a service market on the basis of component, organization, vertical, and region:
- Procurement as a Service Component Outlook (Revenue, USD Million, 2015 – 2025)
- Strategic Sourcing
- Spend Management
- Process Management
- Category Management
- Contract Management
- Transaction Management
- Procurement as a Service Organization Outlook (Revenue, USD Million, 2015 – 2025)
- Procurement as a Service Vertical Outlook (Revenue, USD Million, 2015 – 2025)
- IT & Telecom
- Procurement as a Service Regional Outlook (Revenue, USD Million, 2015 – 2025)
- North America
- Asia Pacific
- Latin America
- Middle East & Africa
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About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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