Strong growth in procurement outsourcing services market

Growth in procurement outsourcing services market
Growth in procurement outsourcing services market
Data from market research company SNS Insider is identifying 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.

What are the primary drivers in outsourced procurement growth?  

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.

The research also looks positively on the impact on the sector as businesses emerge from recession, saying the market is likely to rebound, driven by the need for operational efficiency, scalability, and strategic procurement expertise.

You can get access to the full report here.

What benefits can procurement outsourcing bring? 

Cost Savings  

Outsourcing procurement can lead to reduced operational costs through economies of scale, improved negotiations with suppliers, and optimised procurement processes.

Expertise 

Outsourcing providers often have more specialised knowledge and expertise in certain procurement practices, and technology.

Focus on Core Competencies

Outsourcing non-core procurement activities, companies can concentrate their resources and efforts on their most valuable core business functions instead.

Scalability 

By opting for outsourcing, organisations can scale their procurement operations more flexibly, without the need to invest in significant additional resources.

Access to Technology 

Many providers of outsourcing can offer advanced procurement technologies, such as e-procurement platforms and spend analytics, which can enhance efficiency.

Risk Management 

Providers often have strategies in place to mitigate risks associated with supply chain disruptions, compliance issues, and market fluctuations in their particular area of expertise.

Process Efficiency 

Outsourcing can streamline and standardise procurement processes, leading to improved efficiency.

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Read Procurement Magazine’s Top10 procurement outsourcing consultants 

 

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