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Procurement as a service Market by Component (Strategic Sourcing, Spend Management, Category Management, Process Management, Contract Management, and Transactions Management), Vertical, Organization Size, and Region - Global Forecast to 2024

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Date: 18-Jul-2019
No. of pages: 117
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The growing demand to improve procurement operations and need to reduce the cost associated with procurement among the organizations to drive the market growth

The global procurement as a service market size is expected to grow from USD 5.4 billion in 2019 to USD 7.8 billion by 2024, at a Compound Annual Growth Rate (CAGR) of 7.6% during the forecast period. The procurement as a service market is driven by various factors, such as growing need to handle compliance polices and contracts, growing demand among enterprises to streamline the procurement processes. However, the integration issues with the legacy systems can hinder the growth of the market.

Spend management segment to grow at the highest CAGR during the forecast period

Spend includes analyzing companies spending patterns, spend categorization/spend classification, spend data management, and spend performance management. Effective spend management helps a company ensure that supplier data is kept up to date so that procurement executives are empowered with the right information, and supplier databases throughout a company are integrated to avoid duplication of suppliers. It also involves identifying where procurement inefficiencies exist and the correction of these inefficiencies. Key activities within spend management include spend monitoring and analysis, spend planning and disbursement, and buyer management.

Retail and consumer packaged goods vertical to grow at the highest CAGR during the forecast period

With time, many retail organizations have deployed a mix of technologies, computer systems, and disparate applications to cater to the growing demands of customers. Customer experience proves to be a very vital differentiating factor among a wide array of online shopping options. To improve their performance and achieve higher profits, it is important to have skilled employees and offer the best-in-class offerings through touch points, such as stores and web or mobile applications. Hence, retailers across the globe are formulating data-driven strategies for targeting more customer with a better convergence rate. Procurement as a service helps retailers in streamlining the procurement process and also enables them to reduce the overall procurement cost.

Small and Medium-sized Enterprises (SMEs) segment to grow at a higher growth rate during the forecast period

The SMEs segment is expected to grow at a higher CAGR in the procurement as a service market during the forecast period. More than larger enterprises, the SMEs face a greater resource crunch and require better methods to solve the complexities for cost optimization on their assets and requirements. Therefore, these days, the SMEs are majorly focusing on utilizing the procurement as a service to work globally and manage multiple suppliers.

Asia Pacific (APAC) to record the highest growth rate during the forecast period

APAC is expected to grow at the highest CAGR during the forecast period. The rapid digital transformation in the region has increased the need for procurement outsourcing services. Procurement as a service enables enterprises to free up their procurement departments and also to improve the efficiency of the overall procurement process. Australia and New Zealand (ANZ), India, and China have emerged as the undisputed leaders in the procurement as a service market. North America is projected to hold the largest market size during the forecast period.

In-depth interviews were conducted with the Chief Executive Officers (CEOs), marketing directors, other innovation and technology directors, and executives from various key organizations operating in the procurement as a service market.


  • By company type: Tier 1 – 42%, Tier 2 – 38%, and Tier 3 – 20%

  • By designation: C-level executives– 40%, Director Level – 35%, and Others – 25%

  • By region: North America – 35%, Europe – 27%, APAC– 23%,RoW – 15%


Major vendors offering procurement as a service vendor includes Accenture (Ireland), Infosys (India), GEP (US), Genpact (US), Proxima (UK), WNS (India), Capgemini (France), IBM (US), Wipro (India), HCL Technologies (India), TCS (India), Xchanging (UK), Aegis (India), Corbus (India), and CA Technologies (US)..The study includes an in-depth competitive analysis of the key players in the procurement as a service market, along with their company profiles, recent developments, and key market strategies.

Research coverage

The market study covers the procurement as a service market size across segments. It aims at estimating the market size and growth potential of this market across different segments, such as components, organization size, verticals, and regions. The study also includes an in-depth competitive analysis of the key players in the market, along with their company profiles, key observations related to product and business offerings, recent developments, and key market strategies.

Key benefits of buying the report

The report would provide the market leaders/new entrants in this market with information about the closest approximations of the revenue numbers for the overall procurement as a service market and its sub segments. The report would help stakeholders understand the competitive landscape, gain more insights to position their businesses better, and plan suitable go-to-market strategies. It also helps stakeholders understand the pulse of the market and provides them with information about key market drivers, restraints, challenges, and opportunities.

Procurement as a service Market by Component (Strategic Sourcing, Spend Management, Category Management, Process Management, Contract Management, and Transactions Management), Vertical, Organization Size, and Region - Global Forecast to 2024

Table of Contents

1 Introduction
1.1 Objectives of the Study
1.2 Market Definition
1.3 Market Scope
1.3.1 Market Segmentation
1.3.2 Regions Covered
1.4 Years Considered for the Study
1.5 Currency Considered
1.6 Stakeholders

2 Research Methodology
2.1 Research Data
2.1.1 Secondary Data
2.1.2 Primary Data
2.1.2.1 Breakup of Primary Participants’ Profiles
2.2 Market Breakup and Data Triangulation
2.3 Competitive Leadership Mapping Research Methodology
2.4 Market Size Estimation
2.4.1 Top-Down Approach
2.4.2 Bottom-Up Approach
2.5 Market Forecast
2.6 Assumptions for the Study
2.7 Limitations of the Study

3 Executive Summary

4 Premium Insights
4.1 Attractive Opportunities in the Procurement as a Service Market
4.2 Market in North America, By Vertical and Country
4.3 Market: Major Countries

5 Market Overview
5.1 Introduction
5.2 Market Dynamics
5.2.1 Drivers
5.2.1.1 Growing Demand Among Enterprises to Streamline the Procurement Processes
5.2.1.2 Imminent Need to Handle Compliance Polices and Contracts
5.2.2 Restraints
5.2.2.1 Growing Concerns for Data Security and Privacy Across Enterprises
5.2.3 Opportunities
5.2.3.1 Advent of Artificial Intelligence and Machine Learning in the Procurement Process
5.2.3.2 High Adoption of Analytics Solutions to Improve the Procurement Process
5.2.4 Challenges
5.2.4.1 Integration Issues With the Legacy Systems
5.2.4.2 Outages and Third-Party Dependence
5.3 Industry Trends

6 Procurement as a Service Market, By Component
6.1 Introduction
6.2 Strategic Sourcing
6.2.1 Increasing Need to Manage the Network of Global Suppliers Among Enterprises to Draw the Demand for Strategic Sourcing
6.3 Spend Management
6.3.1 Growing Need Among Enterprises for Effectively Managing the Spending Expenditure to Boost the Demand for Spend Management
6.4 Category Management
6.4.1 Growing Need to Effectively Manage Various Categories and Ensuring Compliance With Contracts to Drive the Demand for Category Management
6.5 Process Management
6.5.1 Increasing Complexities of Procurement Processes to Drive the Demand for Process Management
6.6 Contract Management
6.6.1 Growing Demand Among Enterprises to Comply With the Financial Compliances to Boost the Demand for Contract Management
6.7 Transactions Management
6.7.1 Need for Simplifying Transactional Processes Across Verticals to Fuel the Demand for Transactions Management

7 Market, By Organization Size
7.1 Introduction
7.2 Large Enterprises
7.2.1 Need to Manage Complex Procurement Contracts to Drive the Adoption of Procurement as a Service Among Large Enterprises
7.3 Small and Medium-Sized Enterprises
7.3.1 Need for Eliminating Expenditures Associated With Staff Contracting and Technology Deployment to Boost the Demand for Procurement as a Service Among Small and Medium-Sized Enterprises

8 Market, By Vertical
8.1 Introduction
8.2 Manufacturing
8.2.1 Achieving Shorter Production Time and Reducing Supply Chain Costs to Drive the Adoption of Procurement as a Service in the Manufacturing Vertical
8.3 Retail and Consumer Packaged Goods
8.3.1 Developing a Strong Procurement Infrastructure and Maintaining Ethical and Sustainable Business Practices to Drive the Growth of Procurement as a Service in Retail and Consumer Packaged Goods Vertical
8.4 Banking, Financial Services, and Insurance
8.4.1 Capabilities, Such as Spend Analytics, Market Intelligence, and Supplier Performance Management, to Accelerate the Growth of Procurement as a Service in BFSI Vertical
8.5 IT and Telecom
8.5.1 Improving Total Cost of Ownership and Achieving Success in Mergers and Acquisitions to Boost the Market Growth in the IT and Telecom Vertical
8.6 Energy and Utilities
8.6.1 Understanding Global and Regional Markets for Sourcing, Improving Protection Requirements, and Meeting Warranty Obligations to Drive the Growth of the Market in Energy and Utilities Vertical
8.7 Travel and Hospitality
8.7.1 Managing Suppliers and Contracts, and Enabling Strategic Sourcing to Bolster the Adoption of Procurement as a Service in Travel and Hospitality Vertical
8.8 Healthcare
8.8.1 Need for Increasing R&D and Business Efficiencies to Accelerate the Growth of Market in Healthcare Vertical
8.9 Others

9 Procurement as a Service Market, By Region
9.1 Introduction
9.2 North America
9.2.1 United States
9.2.1.1 Presence of a Large Number of Multinational Companies and Managed Service Providers, and High Adoption of Advanced Solutions to Boost the Growth of Procurement as a Service in the US
9.2.2 Canada
9.2.2.1 Increasing Awareness About the Benefits of Procurement as a Service to Propel the Adoption of Procurement as a Service in Canada
9.3 Europe
9.3.1 United Kingdom
9.3.1.1 Growing Demand to Comply With the Procurement Regulations to Drive the Market Growth in the UK
9.3.2 Germany
9.3.2.1 Presence of a High Number of Manufacturing and Retail Companies and Need for Delivering Sustainable Business to Result in the Increase in the Adoption of Procurement as a Service in Germany
9.3.3 France
9.3.3.1 Technological Advancements and Rising Dependencies on Process Automation to Propel the Demand for Procurement as a Service in France
9.3.4 Rest of Europe
9.4 Asia Pacific
9.4.1 China
9.4.1.1 Need for Easy Raw Material Procurement and Finest Suppliers’ Selection to Drive the Growth of the Procurement as a Service Market in China
9.4.2 India
9.4.2.1 Corporate and Consumer Favoring Government Regulations and Inclination Toward Automation Solutions to Propel the Demand for Procurement as a Service in India
9.4.3 Australia and New Zealand
9.4.3.1 Government Purchasing Initiatives and Maximizing Opportunities for Competitive Suppliers to Fuel the Growth of the Market in Australia and New Zealand
9.4.4 Rest of Asia Pacific
9.5 Middle East and Africa
9.5.1 United Arab Emirates
9.5.1.1 Increasing Adoption of Technologies to Drive the Growth of Procurement as a Service in the UAE
9.5.2 Saudi Arabia
9.5.2.1 Procurement to be the Next Step of Advancement for Improving Operations and Services in the Middle East
9.5.3 South Africa
9.5.3.1 Growth of the Manufacturing Vertical, Coupled With the Retail and Consumer Goods Vertical, to Boost Procurement as a Service Adoption
9.5.4 Rest of Middle East and Africa
9.6 Latin America
9.6.1 Brazil
9.6.1.1 Growing Adoption of Cloud-Based Supply Chain Solutions to Boost the Demand for Procurement as a Service
9.6.2 Mexico
9.6.2.1 Increasing Focus Among Enterprises to Streamline the Procurement Processes to Draw the Demand for Procurement as a Service
9.6.3 Rest of Latin America

10 Competitive Landscape
10.1 Overview
10.2 Competitive Scenario
10.2.1 Product/Solution Launches and Enhancements
10.2.2 Business Expansions
10.2.3 Partnerships, Agreements, Collaborations, and Acquisitions
10.3 Competitive Leadership Mapping
10.3.1 Visionary Leaders
10.3.2 Dynamic Differentiators
10.3.3 Innovators
10.3.4 Emerging Companies

11 Company Profiles
11.1 Introduction
(Business Overview, Services, Key Insights, Recent Developments, SWOT Analysis, MnM View)*
11.2 Accenture
11.3 Infosys
11.4 GEP
11.5 Genpact
11.6 Proxima
11.7 WNS
11.8 Capgemini
11.9 IBM
11.10 Wipro
11.11 HCL
11.12 TCS
11.13 Xchanging
11.14 Aegis
11.15 Corbus
11.16 CA Technologies

*Details on Business Overview, Services, Key Insights, Recent Developments, SWOT Analysis, MnM View Might Not be Captured in Case of Unlisted Companies.

12 Appendix
12.1 Discussion Guide
12.2 Knowledge Store: Marketsandmarkets’ Subscription Portal
12.3 Available Customizations
12.4 Related Reports
12.5 Author Details

List of Tables

Table 1 United States Dollar Exchange Rate, 2015–2017
Table 2 Factor Analysis
Table 3 use Case 1: Improved Savings Through Procurement Process Transformation
Table 4 use Case 2: Attaining Cost Reduction and Faster Project Delivery By Gaining Holistic Visibility Into Procurement Processes
Table 5 use Case 3: Consolidating Transactional Procurement and Eliminating Regional Inconsistencies and Inefficiencies
Table 6 Procurement as a Service Market Size, By Component, 2017–2024 (USD Million)
Table 7 Strategic Sourcing: Market Size, By Region, 2017–2024 (USD Million)
Table 8 Spend Management: Market Size, By Region, 2017–2024 (USD Million)
Table 9 Category Management: Market Size, By Region, 2017–2024 (USD Million)
Table 10 Process Management: Market Size, By Region, 2017–2024 (USD Million)
Table 11 Contract Management: Market Size, By Region, 2017–2024 (USD Million)
Table 12 Transactions Management: Market Size, By Region, 2017–2024 (USD Million)
Table 13 Procurement as a Service Market Size, By Organization Size, 2017–2024 (USD Million)
Table 14 Large Enterprises: Market Size, By Region, 2017–2024 (USD Million)
Table 15 Small and Medium-Sized Enterprises: Market Size, By Region, 2017–2024 (USD Million)
Table 16 Market, By Vertical, 2017–2024 (USD Million)
Table 17 Manufacturing: Market Size, By Region, 2017–2024 (USD Million)
Table 18 Retail and Consumer Packaged Goods: Market Size, By Region, 2017–2024 (USD Million)
Table 19 Banking, Financial Services, and Insurance: Market Size, By Region, 2017–2024 (USD Million)
Table 20 IT and Telecom: Market Size, By Region, 2017–2024 (USD Million)
Table 21 Energy and Utilities: Market Size, By Region, 2017–2024 (USD Million)
Table 22 Travel and Hospitality: Market Size, By Region, 2017–2024 (USD Million)
Table 23 Healthcare: Market Size, By Region, 2017–2024 (USD Million)
Table 24 Others: Market Size, By Region, 2017–2024 (USD Million)
Table 25 Market Size, By Region, 2017–2024 (USD Million)
Table 26 North America: Procurement as a Service Market Size, By Component, 2017–2024 (USD Million)
Table 27 North America: Market Size, By Organization Size, 2017–2024 (USD Million)
Table 28 North America: Market Size, By Vertical, 2017–2024 (USD Million)
Table 29 North America: Market Size, By Country, 2017–2024 (USD Million)
Table 30 Europe: Market Size, By Component, 2017–2024 (USD Million)
Table 31 Europe: Procurement as a Service Market Size, By Organization Size, 2017–2024 (USD Million)
Table 32 Europe: Market Size, By Vertical, 2017–2024 (USD Million)
Table 33 Europe: Market Size, By Country, 2017–2024 (USD Million)
Table 34 Asia Pacific: Market Size, By Component, 2017–2024 (USD Million)
Table 35 Asia Pacific: Market Size, By Organization Size, 2017–2024 (USD Million)
Table 36 Asia Pacific: Procurement as a Service Market Size, By Vertical, 2017–2024 (USD Million)
Table 37 Asia Pacific: Market Size, By Country, 2017–2024 (USD Million)
Table 38 Middle East and Africa: Market Size, By Component, 2017–2024 (USD Million)
Table 39 Middle East and Africa: Market Size, By Organization Size, 2017–2024 (USD Million)
Table 40 Middle East and Africa: Procurement as a Service Market Size, By Vertical, 2017–2024 (USD Million)
Table 41 Middle East and Africa: Market Size, By Country, 2017–2024 (USD Million)
Table 42 Latin America: Market Size, By Component, 2017–2024 (USD Million)
Table 43 Latin America: Market Size, By Organization Size, 2017–2024 (USD Million)
Table 44 Latin America: Market Size, By Vertical, 2017–2024 (USD Million)
Table 45 Latin America: Procurement as a Service Market Size, By Country, 2017–2024 (USD Million)
Table 46 Product/Solution Launches and Enhancements, 2017–2019
Table 47 Business Expansions, 2018–2019
Table 48 Partnerships, Agreements, Collaborations, and Acquisitions, 2018–2019
Table 49 Evaluation Criteria

List of Figures

Figure 1 Procurement as a Service Market: Research Design
Figure 2 Competitive Leadership Mapping: Criteria Weightage
Figure 3 Market: Bottom-Up and Top-Down Approaches
Figure 4 Asia Pacific to Grow at the Highest CAGR During the Forecast Period
Figure 5 Strategic Sourcing Segment to Hold the Highest Market Share in 2019
Figure 6 Manufacturing Vertical to Account for the Highest Market Share in 2019
Figure 7 Growing Need for Optimizing the Procurement Process and Improving Its Efficiency to Drive the Market During the Forecast Period
Figure 8 Manufacturing Vertical and United States Region to Dominate the Procurement as a Service Market in North America in 2019
Figure 9 India to Grow at the Highest CAGR in the Market During the Forecast Period
Figure 10 Drivers, Restraints, Opportunities, and Challenges: Market
Figure 11 Spend Management Segment to Grow at the Highest CAGR During the Forecast Period
Figure 12 Small and Medium-Sized Enterprises Segment to Grow at a Higher CAGR During the Forecast Period
Figure 13 Retail and Consumer Packaged Goods Vertical to Grow at the Highest CAGR During the Forecast Period
Figure 14 Asia Pacific to Witness Significant Growth During the Forecast Period
Figure 15 North America: Market Snapshot
Figure 16 Asia Pacific: Market Snapshot
Figure 17 Key Developments in the Market, 2017–2019
Figure 18 Procurement as a Service Market (Global), Competitive Leadership Mapping, 2019
Figure 19 Accenture: Company Snapshot
Figure 20 Accenture: SWOT Analysis
Figure 21 Infosys: Company Snapshot
Figure 22 Infosys: SWOT Analysis
Figure 23 GEP: SWOT Analysis
Figure 24 Genpact: Company Snapshot
Figure 25 Genpact: SWOT Analysis
Figure 26 WNS: Company Snapshot
Figure 27 WNS: SWOT Analysis
Figure 28 Capgemini: Company Snapshot
Figure 29 IBM: Company Snapshot
Figure 30 Wipro: Company Snapshot
Figure 31 HCL: Company Snapshot

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