Procurement Outsourcing Market will grow at Highest Pace Owing to Cost Reduction

Procurement Outsourcing Market

The procurement outsourcing market involves outsourcing key procurement functions and processes to external service providers. Procurement outsourcing helps organizations improve efficiency, reduce operational costs, and focus on core functions by delegating procurement activities. Companies operating in industries such as healthcare, manufacturing, and retail increasingly rely on procurement outsourcing to drive savings. 

The Global Procurement Outsourcing Market is estimated to be valued at US$ 25.15 Bn in 2024 and is expected to exhibit a CAGR of 8.9% over the forecast period 2024 To 2031.


Key Takeaways
Key players operating in the procurement outsourcing are 3M, Cardinal Health, Smith+Nephew, Genadyne, DeRoyal Industries, Inc., Medela AG, Convatec Inc., Mölnlycke Health Care AB, PAUL HARTMANN AG, ATMOS MedizinTechnik GmbH & Co. KG, Talley Group Ltd, Cork Medical, LLC, and Devon Medical Products. The demand for procurement outsourcing services is rising due to benefits such as streamlined procurement processes, optimized supplier management, reduced costs, access to expertise, and focus on core business activities. Major players are investing in AI, blockchain, and advanced data analytics to enhance procurement processes, gain insights, and deliver superior customer experience.

Market Trends
The Procurement Outsourcing Market Size  is witnessing growth driven by trends such as adoption of cloud-based and SaaS solutions. Cloud-based procurement platforms allow anytime access to procurement functions from any location and device. This offers flexibility, mobility, and enhances collaboration. Another trend gaining traction is adoption of blockchain technology which provides transparency in transactions, immutable records, and automation. Blockchain enables traceability of materials, better compliance and safety standards.

Market Opportunities
Increased demand from SMBs presents lucrative growth opportunities. Although large enterprises have been the main adopters of outsourcing, SMBs are also gradually recognizing the advantages and shifting to outsourced models. Outsourcing gives them access to diverse sourcing capabilities without the need for large procurement teams. Growing investments in developing countries also present opportunities as third-party providers look to expand operations in these regions.

Impact of COVID-19 on Procurement Outsourcing Market Growth
The COVID-19 pandemic has significantly impacted the growth of the procurement outsourcing market. The outbreak resulted in lockdowns and temporary shutdown of manufacturing facilities worldwide. This disrupted the global supply chain networks and adversely affected various business operations. Companies were forced to adopt remote working environments during lockdowns. This challenged the daily management operations of procurement activities and delayed key strategic processes. However, as the pandemic accelerated the digital transformation of businesses, it also prompted companies to outsource non-core procurement functions to managed services providers. Outsourcing helps reduce operational costs and improve efficiency during uncertain market conditions. With work from home becoming the new normal, outsourcing procurement activities ensures seamless operations and cost savings through economies of scale. Going forward, as business resumptions pick up pace, widespread vaccination drives instill confidence and supply chain ecosystems stabilize, the market is expected to steadily regain lost momentum in the post pandemic world. Procurement outsourcing will continue playing a vital role in optimizing costs, managing risks and bringing operational agility to enterprises.

Geographical Regions Where Procurement Outsourcing Market is Concentrated in Terms of Value
North America dominates the global procurement outsourcing market, accounting for the largest share in terms of value. This is attributed to factors such as high technology adoption, strong foothold of leading managed service providers and greater willingness among companies to outsource non-core activities. Meanwhile, Asia Pacific is poised to be the fastest growing regional market for procurement outsourcing over the forecast period. Factors such as rapid industrialization, growing emphasis on operational efficiencies, digital sophistication of emerging economies and affordable outsourcing destinations drive significant demand from the region. Countries like India, China, Japan and South Korea are major hubs for third party procurement service providers in Asia Pacific. Additionally, the presence of global in-house centers and business process outsourcing companies in the region is also augmenting the procurement outsourcing market growth.

Fastest Growing Region for Procurement Outsourcing Market
Asia Pacific region is projected to grow at the fastest pace for the global procurement outsourcing market between 2024 to 2031. The primary factors driving robust outsourcing activities in Asia Pacific region include rapidly developing industrial and manufacturing sectors across developing countries, growing digitalization of business processes and increased cost optimization initiatives among enterprises. Additionally, the presence of proficient outsourcing destinations like India and China offering significant cost benefits has boosted third party procurement outsourcing adoption in the region. The widespread talent pool and robust infrastructure also attract several global managed service providers to establish their delivery centers. With rising foreign investments and government support for digital innovations, the Asia Pacific procurement outsourcing market is well positioned to witness accelerated growth compared to other regions over the forecast period.

Get more insights on – Procurement Outsourcing Market

Explore Related Articles- Machine Learning As A Service (Mlaas) Market

About Author:

Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)


Comments

Post a Comment

Popular posts from this blog

Eyewear Market Is Estimated To Witness High Growth Owing To the Growing Demand for Prescription Eyewear

Image
  Eyewear Market The global Eyewear Market is estimated to be valued at US$ 273.4 billion in 2018 and is expected to exhibit a CAGR of 6.0% over the forecast period 2023-2030 , as highlighted in a new report published by Coherent Market Insights. Market Overview: The Eyewear Market includes products such as prescription glasses, contact lenses, and sunglasses. These products offer vision correction and protection from harmful ultraviolet (UV) rays. The increasing prevalence of eye disorders and the growing awareness about the importance of eye health are driving the demand for eyewear products. Furthermore, the rising use of digital devices and exposure to blue light is also contributing to the need for prescription eyewear to reduce eye strain and prevent vision problems. Market Key Trends: One key trend in the Eyewear Market is the increasing demand for fashionable and luxury eyewear. Consumers are not only seeking vision correction but also looking for eyewear that complements
Read more

The Mobile Computed Tomography Is The Fastest Growing Segment Fueling The Growth Of Computed Tomography Market

Image
  Computed Tomography Market The global Computed Tomography Market is estimated to be valued at US$ 7.9 Bn in 2023 and is expected to exhibit a CAGR of 6.5% over the forecast period 2023 to 2030 , as highlighted in a new report published by Coherent Market Insights. Market Overview : Computed tomography, commonly known as CT or CAT scan, is a medical imaging technique used for clinical diagnosis and interventional procedures. CT imaging provides cross-sectional views of the internal organs to accurately detect medical conditions such as cancer, blood clots, lung nodules, or bone fractures. CT scans generate three-dimensional images or slices of the bones, blood vessels, and soft tissues inside the body. Market key trends: One of the key trends in the computed tomography market is the growing adoption of mobile CT systems. Mobile CT systems are CT devices that can be transported to various locations within a hospital campus or healthcare facility. Mobile CT scanners provide versat
Read more

Electronic Warfare Market Poised to Witness High Growth Owing to Increasing Usage of EW Systems Across Military and Defense Sectors

Image
Electronic Warfare Market Electronic warfare (EW) systems are used for detecting, deceiving or damaging enemy’s communication and radar systems. It involves deliberate emission or suppression of electromagnetic energy to maintain information dominance. EW systems find wide applications across military, including land, sea, air and space operations for counteracting threats from armed forces of other nations. The need for situational awareness and gaining tactical advantage over opponents has catalyzed demand from armed forces globally. The global electronic warfare market is estimated to be valued at US$ 18.45 Bn in 2024 and is expected to exhibit a CAGR of 5.7% over the forecast period 2024 to 2031.  Key players operating in the electronic warfare market are BAE Systems plc, Elbit Systems Ltd., General Dynamics Corporation, Israel Aerospace Industries Ltd., L3Harris Technologies Inc., Leonardo SpA, Lockheed Martin Corporation, Northrop Grumman Corporation, Raytheon Technologies Corpor
Read more