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.
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.
Browse full research report on Procurement
As A Service Market:
https://www.grandviewresearch.com/industry-analysis/procurement-as-a-service-market
Further key
findings from the report suggest:
- 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.
Browse request sample of this report by
Grand View Research: https://www.grandviewresearch.com/industry-analysis/procurement-as-a-service-market/request/rs1
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)
- SMEs
- Large Enterprises
Procurement
as a Service Vertical Outlook (Revenue, USD Million, 2015 - 2025)
- BFSI
- Manufacturing
- Retail
- IT & Telecom
- Healthcare
- Others
Procurement
as a Service Regional Outlook (Revenue, USD Million, 2015 - 2025)
- North America
- U.S.
- Canada
- Europe
- U.K.
- Germany
- Asia Pacific
- China
- India
- Japan
- Latin America
- Brazil
- Mexico
- Middle East &
Africa
About Grand View Research
Grand View Research, Inc. is a U.S. based market
research and consulting company, registered in the State of California and
headquartered in San Francisco. The company provides syndicated research
reports, customized research reports, and consulting services. To help clients
make informed business decisions, we offer market intelligence studies ensuring
relevant and fact-based research across a range of industries, from technology
to chemicals, materials and healthcare.
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