by Procurement outsourcing refers to outsourcing the procurement processes of an organization to a third-party service provider. It helps reduce costs and risks associated with procurement activities. Procurement outsourcing services include sourcing, supplier management, procure-to-pay services, spend analysis, and contract management. They help organizations focus on their core operations while managing procurement functions efficiently. The global Procurement Outsourcing Market is estimated to be valued at US$ 5.94 Billion in 2024 and is expected to exhibit a CAGR of 6.5% over the forecast period 2024 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The increased adoption of procurement outsourcing services across industries is a major trend fueling the market growth. Many organizations are outsourcing procurement activities to specialized third-party providers to gain expertise, reduce costs, and increase efficiency. As procurement outsourcing helps mitigate risks, streamline processes, and focus on core operations, its adoption has grown significantly among industries such as retail, healthcare, manufacturing, and telecom in recent years. Procurement outsourcing service providers offer technological capabilities and expertise that help clients maximize savings, ensure compliance, and drive supply chain agility. This is boosting the revenue of procurement outsourcing market players.
Segment Analysis
The Global Procurement Outsourcing Market Demand comprises several segments such as direct and indirect materials. Among these, the direct materials segment is expected to dominate the market during the forecast period. Direct materials are raw materials and components that directly go into the manufacturing of products. Procuring direct materials requires proper expertise and channelizing efforts to gain value from suppliers. Outsourcing direct material procurement allows companies to focus on their core operations while leveraging the expertise of procurement outsourcing companies.
Key Takeaways
The global procurement outsourcing market is expected to witness high growth during the forecast period between 2024 to 2030.
Regional analysis shows that North America currently dominates the market followed by Europe and Asia Pacific. The growth in North America can be attributed to presence of prominent procurement outsourcing players and established manufacturing sector.
Key players operating in the procurement outsourcing market 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. 3M, Cardinal Health and Smith+Nephew currently dominate the market due to their quality offerings and global presence.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.
