Procurement as a Service Market

Procurement As A Service Market witnessed USD 5271 million in 2019, growing at a robust CAGR of 8.8% during forecast period.

Introduction of the Procurement as a service Market Report

Procurement as a service, also known as PAAS, refers to an outsourced procurement model that collaborates technology, staff, and expertise to handle a portion, if not all, of the company’s procurement function. The procurement as a service model impacts the bottom line, mitigates risks, and helps to focus on what matters the most. The service provider makes the process visible to the organizations they work with, usually by following a reporting portal.

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Key Drivers and Emerging Trends

Global procurement as a service market is predicted to gain more demand over the next six years. The increasing requirement among enterprises to decrease the cost related to procurement operations and streamline procurement processes is one of the biggest factors that is responsible for the growth of the market. There has been an increase in the penetration of advanced technologies such as artificial intelligence, IoT, and other technologies, which is another factor that is driving the market growth. With the growing competition at the global level, the supply chains are adopting modernized processes to ensure productivity and improve business operations. There has been an emergence of customized offerings, which has motivated the service providers to shift their business towards the “as-a-service” model.

The procurement technology vendors, including SAP SE and Tradeshift, are creating individual suppliers network, procure-to-pay, and e-procurement solutions to capture the highest share in the market. Thus, the customers are switching towards e-procurement solutions to decrease their time and cost for marketing the product offerings. The management of indirect spending is complex and requires extensive labor within the company. It involves sourcing complex goods and services such as IT services, marketing, facilities management, and professional services. This has shifted the customers towards the adoption of procurement as a service model for effective management of business operations, tracking of purchases, and payments. As per the procurement as a service market research, the increasing usage of automation is bringing advancement in the procurement transformation process such as it has helped in digitalizing and reinventing processes to touch new levels. For instance, Accenture’s procurement as a service model has helped the clients to receive various benefits from its cloud-based Source-to-pay platform, Radix. Thus, automation enabled analytics plays an important role in improving the speed, effectiveness, and accuracy of the workflow for better outcomes.

Restraint in the Procurement as a service Market

On the other edge of the spectrum, the increasing concerns related to data security and privacy across various organizations is a major factor that is likely to hamper the market growth.

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Component – Segment Analysis

Based on the component, the strategic sourcing segment is anticipated to witness a faster CAGR during the forecast period. Strategic sourcing involves numerous activities, including identification of organizations’ external spending, conducting Request for Proposal (RFP)/Request for Quotation (RFQ) process, and negotiating prices with suppliers, and setting up the contracts. Thus, the ability of strategic sourcing to offer various operations is attracting individuals towards the segment. Strategic sourcing also acts as an important part of every business.

Vertical – Segment Analysis

Based on the vertical, the manufacturing segment is anticipated to dominate the market during the forecast period. The intense competition in the global market, along with the changing demand of the end-users, has encouraged the manufacturing organizations to deliver high quality at a reduced price range and with advanced features. Thus, the manufacturing firms have started opting for procurement outsourcing and technology-driven solutions to streamline their manufacturing processes and increase their revenue. The implementation of procurement as a service model has allowed the organizations to emphasize on their competence areas, such as on-time delivery, manufacturing skills, and other aspects.

Organization Size – Segment Analysis

Based on the organization size, the small and medium-sized enterprises segment is expected to grow at a higher CAGR during the forecast period. This is attributed to the increasing awareness related to the usage of procurement as a service model to minimize expenditure related to technology deployments ad staff contracting. Additionally, the rising requirement to manage complex procurement contracts is further surging the segment growth.

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Regional – Segment Analysis:

Based on the region, Europe is expected to dominate the global procurement as a service market during the forecast period. The growing awareness related to the streamlining of supply chain processes is one of the biggest factor that is expected to drive the market growth in this region. This model has helped the companies to shift towards sustainability. On the other hand, the rest of the world region is predicted to grow at a higher CAGR over the forecast period. The rising number of enterprises in Latin America which are increasingly opting for procurement as a service model to transform their businesses, is a significant factor that is propelling the market growth.

Top Market Players

Various notable players operating in the market, include Accenture, Infosys Limited, GEP, Genpact, Proxima Group, WNS (holdings) Ltd., Capgemini, IBM, and Wipro Limited, among others. 

Key Developments:

• • In 2019, Accenture launched SynOps, a human-machine operating engine, which optimizes the synergy of data, applied intelligence, digital technologies, and talent to help the companies to transform their business operators.

Segments covered in the Report:

The global Procurement as a service market has been segmented on the basis of Component, Organization Size, Industry Vertical, and key regions. Based on Component, the market is segmented into Strategic Sourcing, Spend Management, Category Management, Process Management, Contract Management, and Transactions Management. Based on Organization Size, the market is segmented into SMEs and Large Enterprises. Based on Industry Vertical, the market is segmented into BFSI, Retail & consumer packaged goods, IT & Telecom, Healthcare, Manufacturing, Energy and Utilities, Travel & Hospitality and Others. 

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Key questions answered in this research report:

• • At what pace is global Procurement as a service market growing? What will be the growth trend in the future?
  • What are the key drivers and restraints in Procurement as a service market? What will be the impact of drivers and restraints in the future?
  • What are the regional revenues and forecast breakdowns? Which are the major regional revenue pockets for growth in the global Procurement as a service market?
  • Which Component generated maximum revenues in 2019 and identify the most promising Component during the forecast period?
  • What are the various Organization Sizes of global Procurement as a service market and how they are poised to grow?
  • What companies are the major participants in this market and their business strategies, how does the competitive landscape look like?

Report Coverage	Details
Market Base Year	2019
Market Forecast Period	2020-2027
Market Revenues (2019)	USD 5271 million
Base Year & Forecast Units	Revenues (USD Million)
Market Segment	By Component, By Organization Size, By Industry Vertical, By Region
Regional Coverage	Asia Pacific, Europe, North America, and RoW
Companies Profiled	Accenture, Infosys Limited, GEP, Genpact, Proxima Group, WNS (holdings) Ltd., Capgemini, IBM, and Wipro Limited, among others; a total of 9 companies covered.
25% Free Customization Available	We will customize this report up to 25% as a free customization to address our client’s specific requirements

Market Segmentation

Global Procurement as a service Market by Component

• • Strategic Sourcing
  • Spend Management
  • Contract Management
  • Category Management
  • Process Management
  • Transactions Management

Global Procurement as a service Market by Organization Size

• • Large enterprises
  • Small and Medium-sized Enterprises (SMEs)

Global Procurement as a service Market by Industry Vertical

• • Manufacturing
  • Retail and consumer packaged goods
  • Banking, Financial Services, and Insurance (BFSI)
  • IT and Telecom
  • Energy and Utilities
  • Healthcare
  • Travel and Hospitality
  • Others

Global Procurement as a service Market by Region

• • North America Procurement as a service Market (Option 1: As a part of the free 25% customization)
    • North America Market by Component
    • North America Market by Organization Size
    • North America Market by Industry Vertical
    • US Market All-Up
    • Canada Market All-Up
  • Europe Procurement as a service Market (Option 2: As a part of the free 25% customization)
    • Europe Market by Component
    • Europe Market by Organization Size
    • Europe Market by Industry Vertical
    • UK Market All-Up
    • Germany Market All-Up
    • France Market All-Up
    • Spain Market All-Up
    • Rest of Europe Market All-Up
  • Asia-Pacific Procurement as a service Market (Option 3: As a part of the free 25% customization)
    • Asia-Pacific Market by Component
    • Asia-Pacific Market by Organization Size
    • Asia-Pacific Market by Industry Vertical
    • China Market All-Up
    • India Market All-Up
    • Japan Market All-Up
    • Rest of APAC Market All-Up
  • RoW Procurement as a service Market (Option 4: As a part of the free 25% customization)
    • RoW Market by Component
    • RoW Market by Organization Size
    • RoW Market by Industry Vertical
    • Brazil Market All-Up
    • South Africa Market All-Up
    • Saudi Arabia Market All-Up
    • UAE Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Market All-Up

Major Players Operating in the Procurement as a service (Option 5: As a part of the Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • Accenture
  • Infosys Limited
  • GEP
  • Genpact
  • Proxima Group
  • WNS (holdings) Ltd.
  • Capgemini
  • IBM
  • Wipro Limited