Global Procurement-As-A-Service Market Forecast to 2030 - Covid-19 Impact Analysis (By Component: Strategic Sourcing, Spend Management, Process Management, Category Management, Contract Management, and Transaction Management; By Organization: SMEs, and Large Enterprises; and By Vertical: BFSI, Manufacturing, Retail, IT & Telecom, Healthcare, and Others) - Global Market Size, Industry Trends, Competitive Landscape, and Opportunities
The global market for procurement-as-a-service accounted for US$ 4,901 Mn in 2021 and is anticipated to reach US$ 10,936 Mn by 2030 with a CAGR of 9.6% from 2022 to 2030.
Procurement as a service (PaaS) is an outsourced procurement approach that combines technology, staff, and knowledge to manage a portion, if not all, of your company's procurement needs. Technology allows them to know what you're spending your money on and where you're likely to save money.
Firms that provide procurement services come in a range of shapes and sizes. However, most end-to-end procurement service providers fall into one of two categories: huge generalists or "multi-tower" corporations, and more specialist "best-of-breed" suppliers. Each has its own set of competitive advantages: multi-tower providers, which are often larger organizations, have strong brands and supply services across several business processes, whereas specialists, who are much smaller in size, are nimble domain experts.
COVID-19 Impact on the Global Procurement-As-A-Service Market
There has been a health crisis since the start of the COVID-19 epidemic, and business executives all around the world have been designing crisis management plans to keep their consumers, clients, and businesses safe. As a result of the epidemic, nearly half of procurement firms (46%) reported lowering their cost-cutting targets, while only 28% reported raising them. The solution to such a dilemma is the application of sophisticated technologies.
Despite its widespread adoption, the procurement outsourcing model of today, which is defined by long-term, multiprocess, and generally fixed-cost engagements, will soon become obsolete. It will be similar to how today's procurement outsourcing specialists have reduced the need for CPOs to bring in teams of expensive consultants to provide sourcing and category management services. Procurement will be delivered "as a service."
Growing procurement pressures, higher stakeholder expectations, and increased demand for analytics and market intelligence are just a few of the other factors that have prompted businesses to pay attention to the procurement service provider capabilities available today and to be willing to go beyond the traditional methods of resource augmentation and business process outsourcing.
Companies are also considering a variety of approaches to gaining access to procurement expertise from Procurement Service Providers, including flexible, modular services and commercial models that enable expansion and increased value development.
The outsourcing paradigm of today, which is built on fixed-cost engagements and long-term multi-procurement processes, will become obsolete. Procurement as a service is the way of the future, as this delivery model gives businesses more control. On-demand subject matter expertise and technology will be available to them. It saves money because businesses will only pay for what they require and utilize. There's no need to group activities together.
Component, organization size, vertical, and region are the three categories of the global procurement-as-a-service industry. Based on the component sector, the segmentation includes spending management, strategic sourcing, process management, contract management, category management, and transaction management. Based on our analysis, strategic sourcing is expected to dominate the procurement-as-a-service market during the predicted years. As a result of digital transformation, which has sparked procurement and supply chain operations, strategic sourcing has gained popularity in the worldwide market.
The organization size segment is bifurcated into large enterprises and SMEs. Procurement-as-a-service is widely utilized around the world since it allows huge businesses to generate revenue.
The vertical segment is further categorized into BFSI, retail, manufacturing, IT & telecom, healthcare, and others. The manufacturing category dominated the market with the largest shares in 2021. Innovative procurement-as-a-service solutions, experience, subject understanding, and the utilization of cutting-edge digital technologies like AI, ML, and RPA bring considerable value to clients.
Global Procurement-As-A-Service Market Geographical Competition
North America, Europe, Latin America, Asia-Pacific, and the Middle East & Africa are the segmentation of the worldwide procurement-as-a-service industry. The North America region occupied the maximum market share in 2021. This is due to the presence in this region of a leading and quickly developing US-based technology firm. These businesses make significant investments in order to compete and grow quickly in emerging markets. On the other hand, the Asia-Pacific region is anticipated to attain the fastest growth rate throughout the forecast period 2022 – 2030, due to a considerable rise in demand for digital solutions to administer and streamline supply chain operations.
Global Procurement-As-A-Service Industry Segment Analysis
Market By Component
· Spend Management
· Strategic Sourcing
· Process Management
· Contract Management
· Category Management
· Transaction Management
Market By Organization Size
· Large Enterprises
Market By Vertical
· IT & Telecom
Procurement-As-A-Service Market Leading Companies
This section of the study honors the market's top vendors Accenture, Aegis Limited, Genpact, GEP, HCL Technologies Ltd, Infosys Limited, International Business Machines Corporation (IBM), Tata Consultancy Services Limited (TCS), Wipro Limited, and WNS Limited are the key companies mentioned in the research.
Procurement-As-A-Service Market Regions
· Rest of Europe
· Rest of Latin America
· South Korea
· Rest of Asia-Pacific
Middle East & Africa
· South Africa
· Rest of Middle East & Africa