The continued rapid growth of the market is being attributed to the increasing digitisation of business operations and organisations recognising the potential of advanced technologies such as big data analytics, artificial intelligence (AI), and machine learning.
The projections come from SkyQuest Technology, a Massachusetts based growth consulting firm.
The appeal for using procurement as a service technology is it allows for companies to leverage an efficient and unified solution for managing all procurement technology. If properly implemented it allows companies to find significant cost savings by leveraging an outsourced procurement provider's expertise, technology, and resources.
The outook for the forecast period of 2023- 2030 suggests a compound annual growth rate of 11.1%.
Growth in Asia Pacific region
The SkyQuest report also identifies the region with the highest CAGR in the procurement as a service market. The market in the Asia Pacific is projected to exhibit the highest CAGR, which can be attributed to the increasing demand for digital solutions to manage and streamline regional supply chain operations effectively.
With rapid expansion of businesses and the complexity of global supply chains, organisations in the Asia Pacific are recognising the need for efficient procurement processes and turn to procurement as a service to meet their requirements.
Transaction management sector growth
The transaction management sector is also expected to grow the market due to increasing emphasis on optimising aspects of transactions.
This can include price and terms negotiation, invoicing applications, delivery processes, and purchase order management. This focus on transaction management comes from recognising that streamlined transactional processes can improve operational efficiency, cost savings, and customer satisfaction.
Regional markets in Europe dominate the procurement as a service market, accounting for a significant share of the overall revenue. Europe is witnessing steady growth in the procurement sector and one of the primary drivers of this growth is the focus of procurement service providers on delivering customised service plans to their customers.
Procurement outsourcing services market
It comes as recent data from market research company SNS Insider suggested strong growth in the the procurement outsourcing services market.
The research from SNS Insider suggests the market reached a value of USD 6.73 billion in 2022. It is projected to expand at a CAGR of 9.8% during the forecast period 2023-2030, with an estimated worth of USD 14.21 billion by 2030.
Some of the main drivers behind the reported growth of procurement outsourcing services is the increasing complexity nature of global supply chains. The networks and tiers of supply have become more intricate, involving multiple suppliers, locations and differing regulatory requirements.
It can prove difficult for procurement operations to manage these complexities in-house and can be both challenging and resource-intensive. By outsourcing procurement, organisations can use the expertise and networks of specialised service providers to streamline their operations.
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