The Global Procurement as a Service Market size is expected to reach $10. 3 billion by 2027, rising at a market growth of 7. 9% CAGR during the forecast period. Procurement as a service refers to a third-party procurement that ideally blends expertise, employee, and technology with an aim to manage the procurement requirement of a company.
New York, Aug. 31, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Global Procurement as a Service Market By Component, By Enterprise Size, By Application, By Regional Outlook, Industry Analysis Report and Forecast, 2021 - 2027" - https://www.reportlinker.com/p06131321/?utm_source=GNW
Additionally, it offers analytics and insights on money consumed by them which further helps in saving money on various tasks. It also helps them to assign category professionals who can do management, sourcing, and purchasing tasks effectively. In addition to this, by employing the ideal experts who efficiently utilize their knowledge with the help of appropriate tools, procurement as a service is proved to be extremely effective in improving the overall procurement lifecycle.
In the last some years, "as a service" market has been witnessing massive popularity because of various aspects like time to scale, go-to-market strategy, investment power, direct & easy access to sources, and among others. The existing outsourcing models are majorly built on long-term multi procurement techniques and fixed-cost actions which are already getting obsolete. However, procurement as a service model is capable enough to identify major requirements of indirect and direct spending. In addition to it, various procurement service vendors enable organizations to perceive the procurement using their reporting portal which further improves transparency.
Moreover, service vendors can also streamline access to procurement models and analytics to the organizations which helps them to monitor inventory run their reports, and even upload payments. Therefore, all these features are enabling organizations to obtain superior control of their operations and develop efficiency.
As companies around the world are constantly struggling with the outbreak of the COVID-19 pandemic, the demand for services to reduce supply risks, maximizing working capital and cash slow while keeping the high profitability will witness high popularity. This chaotic situation is likely to support the growth of the market during the forecast period. Though, the pandemic has an impact on the demand during the second quarter of 2020, with companies closing down manufacturing operations in the midst of lockdown norms and companies reducing the costs, they witnessed a modest recovery in 2021. The market will witness the similar level of growth as prior to COVID-19 by the end of 2022, with the resumption of business operations activities.
Based on Component, the market is segmented into Strategic Sourcing, Process Management, Category Management, Transaction Management, Spend Management, Contract Management, and Others. Strategic sourcing procured a major revenue share in 2020, followed by transaction management. With the help of strategic sourcing, companies become empowered to efficiently deploy their sourcing strategies and save valuable financial resources. In the procurement domain, Challenges like global political unrest, COVID-19 pandemic, or natural catastrophic events can cause an extensive impact on the companies. Thus, the sourcing element becomes a crucial element for every type of business.
Enterprise Size Outlook
Based on Enterprise Size, the market is segmented into Large Enterprises and Small & Medium Enterprise. Large enterprises having a roadmap for handling complicated procurement contracts and bag deals will continue to put heavy investments in these solutions, thereby garnering a massive revenue share of the global market. These solutions are highly popular among large enterprises as they help in reducing operational costs while minimizing business complications. The segment would showcase a promising growth rate during the forecast period. Though, in large enterprises, integration problems because of the legacy systems will become a major limitation.
Based on Application, the market is segmented into Manufacturing, Retail, BFSI, Healthcare, IT & Telecom and Others. The retail segment acquired a substantial revenue share of the global market in 2020. The retail industry is customer-centric, equipped with changing industry trends emerging from evolving customer needs and spending habits. In the retail environment, these solutions assist in the synchronization of various activities while increasing returns on investment. Moreover, with the incorporation of the latest technologies like Machine Learning (ML) and Artificial Intelligence (AI), the procurement service offerings will deliver various other additional service features also such as analytics to the end-user, thereby bringing lucrative growth opportunities for the market players.
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. APAC procurement as a service market is observing a prominent growth in the current scenario. The region has become a worldwide manufacturing hub with the existence of various manufacturing sectors. The major countries in the APAC procurement as-a-service market are India, China, Japan, South Korea, and the Rest of APAC. Besides, the quick digital transformation in the region has augmented the need for procurement outsourcing services.
The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; IBM Corporation, Accenture PLC, Infosys Limited, Tata Consultancy Services Ltd. are the major forerunners in the Procurement as a Service Market. Companies such as WNS (Holdings) Ltd., Genpact Limited, and HCL Technologies Limited are some of the key innovators in the market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include IBM Corporation, Accenture PLC, Broadcom, Inc., HCL Technologies Ltd. (HCL Enterprises), Genpact Limited, Infosys Limited, Wipro Limited, Tata Consultancy Services Ltd., NB Ventures, Inc. (Global eProcure), and WNS (Holdings) Ltd.
Recent strategies deployed in Procurement as a Service Market
Partnerships, Collaborations, and Agreements:
May-2021: GEP collaborated with Comdata, a leading innovative global service provider in customer management BPO. Under this collaboration, Comdata selected GEP SMART, the industry’s premier procurement software platform. Comdata would implement GEP software as an integral part of the program to advance and unite the procurement operations over the company to improve efficiency and provide more value to their customers.
Apr-2021: IBM formed a partnership with Celonis and Red Hat. This partnership aimed to help in boosting the adoption of the Celonis Execution Management System (EMS) and delivering more flexibility and options in how clients deploy the technology. The partnership between Celonis and IBM GBS would initially aim at Advanced end-to-end consulting expertise, Business process outsourcing, Embed in IBM Garage, Industry-specific intelligent workflows.
Apr-2021: GEP joined hands with ENMAX Corporation, a primary provider of electrical services, products and solutions. Under this collaboration, ENMAX selected GEP SMART, the industry’s principal procurement software platform. GEP SMART’s Sourcing software would deliver ENMAX’s supply chain company with improved efficiencies and a simplified public bid process.
Apr-2021: Tata Consultancy Services entered into an agreement with Wavin, a Netherlands-based global innovative solutions provider for the building and infrastructure industry. Under this agreement, Wavin deployed the TCS ERP on the Cloud platform to expand its business in new growth markets in Indonesia & India. Wavin selected the TCS ERP on Cloud platform, which offers hosted ERP applications & services that can be introduced swiftly across key enterprise processes like procurement, manufacturing, sales & distribution, supply chain management, finance and accounting.
Mar-2021: HCL Technologies extended its partnership with Google Cloud. This expansion aims to integrate HCL Software’s Digital Experience (DX) and Unica Marketing cloud-native platforms to Google Cloud. The Google Cloud portfolio offers clients a cost-efficient and highly scalable, safe and flexible cloud deployment option with a global reach, which can complement the deployment of HCL’s DX, Unica and Commerce cloud-native platforms.
Mar-2021: WNS Limited formed a partnership with McCain Foods, a global leader in planet-friendly food. In this partnership, WNS, by using its intelligent, automated F&A portfolio powered by AI and ML, is assisting CFOs in the development of superior Finance companies by boosting speed, improving accuracy, harnessing the power of data, and decreasing cost.
Feb-2021: HCL came into a five-year digital workplace services agreement with Airbus, a European multinational aerospace corporation. Under this agreement, HCL Technologies’ Fluid Workplace Model would help Airbus to implement the new digital technologies and would swiftly streamline Airbus’ prevailing IT processes and optimization of delivery costs, utilizing the distinct end-to-end management services to inculcate the information & operational technology landscape.
Dec-2020: Accenture Federal Services (AFS), a subsidiary of Accenture teamed up with Appian, a cloud computing and enterprise software company. In this collaboration, AFS is making the new delivery accelerators to improve Appian’s Acquisition Solutions, which streamline the acquisition procedure & validate that the procedure fully obeys the Federal Acquisition Regulations for defense & civilian agencies with their supplements & policies.
Dec-2020: IBM entered into an agreement with ABB, a global technology company. The agreement aims to support ABB’s procurement digitization journey with the release of SmartBuy, the latest designed end-to-end employee purchasing program, which focuses on matching the ease of online shopping along with the intuitiveness & speed of a search engine. This solution is developed to work with automating the procedure of procuring, finding and managing ABB’s supplier network, with services like self-registration & contract procedures.
Dec-2020: Infosys came into partnership with Rolls-Royce, one of the world’s leading aerospace and defence technology companies. Under this partnership, Rolls-Royce focused on the transition of a noticeable part of its engineering centre offerings for Civil Aerospace in Bengaluru to Infosys.
Dec-2020: Wipro Limited came into partnership with LogiNext, a fast-growing technology company. In this partnership, Wipro would combine its process transformation capabilities with LogiNext’s SaaS platform to provide an end-to-end solution for supply chain clients. The platform focuses on helping customers to maximize and automate the logistics operations for the last-mile deliveries or transport of smaller freights.
Dec-2020: WNS Limited announced the expansion of its partnership with Scandinavian Airlines System (SAS). Through this expansion, WNS would continue to offer SAS a complete range of services that include Passenger Revenue Accounting (PRA) & Cargo Revenue Accounting (CRA), and would incrementally add analytical support and the latest solutions over risk, audit and compliance.
Oct-2020: Accenture Federal Services (AFS), a subsidiary of Accenture and Criterion Systems came into an agreement with the U.S. Department of Agriculture (USDA) Information Technology Support Services (DAITSS). This agreement focuses on streamlining the enterprise information technology (IT) support services & centralize procurement functions.
Aug-2020: Genpact partnered with Deloitte, a multinational professional services network. This partnership aimed to provide comprehensive solutions to assist companies in scale & maximize critical business operations, improve speed to the outcome, offer business transformation to improve competitive growth and develop resilience in an uncertain future.
May-2020: Tata Consultancy Services partnered with JDA Software, an American software and consultancy company. This partnership aimed to develop next-generation cognitive solutions and provide consulting & system integration services across digital technologies for supply chain customers across the globe.
Apr-2020: WNS Limited came into partnership with the Chartered Institute of Procurement & Supply (CIPS). Together, the entities rolled out a Benchmark Study on procurement performance and team dynamics. The findings of the joint research would assist procurement companies to align tightly with business objectives and emerge as valuable partners in their corporate ecosystem.
Acquisition and Mergers:
Apr-2021: IBM signed an agreement to acquire myInvenio, a process mining software company. This acquisition would offer companies with data-driven software that can assist them to detect the most impactful business procedures to automate by using AI like sales, production, procurement, and accounting.
Mar-2021: Wipro Limited signed an agreement to acquire Capco, a business and technology management consultancy firm. Through this acquisition, Wipro will become one of the largest end-to-end global technology, consulting, and transformation service providers to the banking & financial services sector.
Jan-2021: HCL Technologies completed the acquisition of DWS Group, a leading Australian IT, business and management consulting group. This acquisition will strongly improve HCL’s contribution to Digital initiatives in Australia & New Zealand and also strengthen HCL’s customer portfolio across the major industries.
Jan-2021: Genpact took over Enquero, a firm that offers data engineering and data-led digital transformation services. Under this acquisition, Enquero expands Genpact’s robust foundation of current capabilities in providing an end-to-end transformation to enterprise customers.
Sep-2020: Infosys signed an agreement to acquire GuideVision, an award-winning enterprise service management consultancy. This acquisition aimed to build capabilities that are relevant to the digital priorities of Infosys’ customers.
May-2020: IBM came into an agreement to acquire Emptoris, a provider of cloud and on-premise analytics software. In this acquisition, Emptoris brings to IBM the Smarter Commerce, which is a set of latest, flexible and combined solutions that organize and manage the sourcing & procurement of goods & materials as an integral part of supply chain management.
Jul-2018: Genpact entered into an agreement to acquire Barkawi Management Consultants, a leading supply chain management consultancy. The acquisition of Barkawi Management Consultants’ consulting expertise and leading supply chain technology services would help Genpact to provide customers with end-to-end supply chain services augmented by digital, domain, and data science expertise.
Scope of the Study
Market Segments covered in the Report:
• Strategic Sourcing
• Process Management
• Category Management
• Transaction Management
• Spend Management
• Contract Management
By Enterprise Size
• Large Enterprises
• Small & Medium Enterprise
• IT & Telecom
• North America
o Rest of North America
o Rest of Europe
• Asia Pacific
o South Korea
o Rest of Asia Pacific
o Saudi Arabia
o South Africa
o Rest of LAMEA
• IBM Corporation
• Accenture PLC
• Broadcom, Inc.
• HCL Technologies Ltd. (HCL Enterprises)
• Genpact Limited
• Infosys Limited
• Wipro Limited
• Tata Consultancy Services Ltd.
• NB Ventures, Inc. (Global eProcure)
• WNS (Holdings) Ltd.
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