Procurement Service Market

Growing demand for procurement is driving the market growth

Market CAGR for service procurement is driven by the rising requirement for effective demand and supply management solutions. Demand management is a procedure within a business that allows businesses to tailor their capability to meet variants in demand or to manage the level of demand via marketing or procurement management strategies. Procurement management solutions can support generating statistics-based predictions from various strategies from data, recent events, and casual dynamics. Procurement management services can apply a robotic ecosystem to assess supply restrictions, financial predictions, customer commitments, inventory count, demand and cost management to facilitate an automated ecosystem.

The rise in the need to improve supply chain visibility and the desire for better transparency of orders and shipment information further increase the market's growth. Thus, driving the procurement as a Service market revenue.

The Global Procurement as a Service Market Industry experiences heightened demand for cost efficiency as organizations seek to optimize their procurement processes. By outsourcing procurement functions, companies can reduce operational costs and enhance their focus on core business activities. In 2024, the market is projected to reach 7.56 USD Billion, reflecting a growing trend among businesses to leverage external expertise for procurement. This shift not only minimizes overhead costs but also allows for better negotiation power with suppliers, ultimately leading to improved profit margins. As organizations increasingly recognize the financial benefits, the market is likely to expand further.

By region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American Procurement as a Service market will dominate this market, owing to the high deliberation of procurement as a service vendor. In addition, the existence of large-scale MNCs and the requirement to decrease operational costs will boost market growth in this region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: PROCUREMENT AS A SERVICE MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe Procurement as a Service market accounts for the second-largest market share due to the increasing concentration of procurement as a service provider in offering modified service plans to their customers and increasing demand from European manufacturing enterprises for enlarging the procurement process. Further, the Germany Procurement as a Service market held the largest market share, and the UK Procurement as a Service market was the fastest growing market in the European region.

The Asia-Pacific Procurement as a Service Market is expected to grow at the fastest CAGR from 2023 to 2032 due to increasing demand for digital solutions to manage and modernize supply chain operations. Moreover, China’s Procurement as a Service market held the largest market share, and the Indian Procurement as a Service market was the fastest growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the procurement as a Service market, grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The procurement as a Service industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the procurement as a Service industry to benefit clients and increase the market sector. In recent years, the procurement as a Service industry has offered some of the most significant advantages to procurement as a service. Major players in the procurement as a Service market, including CA Technologies, Accenture, Corbus, Infosys, Aegis, GAP, Xchanging, Genpact, TCS, Proxima, HCL Technologies, WNS, Wipro, Capgemini, IBM, and others, are attempting to increase market demand by investing in research and development operations.

WNS is a leading Business Process Management (BPM) company. The company collaborated with customers across ten sectors to develop creative, digital-led transformative solutions by fusing its extensive industry knowledge with our strengths in technology and analytics. WNS‘s main aim is to co-create brand distinctiveness for its clients and enable them to succeed via its passion for service and innovation. For instance: in November 2021, WNS launched WNS FINSIBLE, a set of banking solutions allowing FinTechs to streamline, manage and scale operations proficiently.

FINISBLE delivers an entire end-to-end value chain of the banking procedure, with deposits and payments, lending, risk & compliance customer service and advisory services. The offering is customizable and scalable to report the necessity of FinTech clients irrespective of their operations maturity.

Microsoft supports digital transformation in the age of the intelligent edge and cloud. Its goal is to enable each individual and every organization to do more. In 1990, Microsoft established its operations in India. Microsoft provides local data centers in India with access to its worldwide cloud services to speed up the digital transformation of Indian start-ups, corporations, and government institutions. For instance: in October 2022, the Microsoft Cloud Partner Program renowned HCLTech as a Solutions Partner.