Procurement Outsourcing Market Trends and Forecast Analysis

The Procurement Outsourcing Market Size Was Valued at USD 3.3 Billion in 2023, and is Projected to Reach USD 10.4 Billion by 2032, Growing at a CAGR of 13.7% From 2024-2032.

The procurement outsourcing market can be defined as the strategic management of the procurement activity in which the purchasing and supply chain activities are outsourced to a third-party service provider for efficiency, cost reduction and allowing the organisation to concentrate in its main activities. Outsourcing in procurement means any of the activities that involve sourcing and supplier management, contract and order management, spend analysis, and transaction management. These services are used by organizations to reduce the corporate buying center, to outsource and buy specialized knowledge, to increase supply chain transparency and to meet compliance standards. Outsourcing providers, through the combination of technology-enabling tools, enable the procurement strategies focus on attaining value through cost optimization and business growth sustainability, and suppliers’ risk and market volatility.

The market for procurement outsourcing has grown considerably due to requirement of lower costs, better procurement practices and optimal resource management. Manufacturing, retail, healthcare, and IT industry has witnessed outsourcing of procurement functions and strategic sourcing for delivering better performance over core organizational processes. That is why the increasingly rapid implementation of modern technologies, including artificial intelligence (AI), big data, and blockchain, in procurement processes continues to drive the market’s growth. These technologies bring factual data and real-time procurement decisions and empower suppliers resulting in making procurement outsourcing a strategic business model in the advanced economy.