Procurement outsourcing involves outsourcing of purchasing activities related to medical supplies, equipment, pharmaceutical products and services to specialized third-party vendors by healthcare facilities. This helps various healthcare organizations to focus on their core clinical functions.
The global Procurement Outsourcing Market is estimated to be valued at US$ 5.94 Bn in 2023 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 growth of the global healthcare industry has significantly propelled the procurement outsourcing market over the past few years. Healthcare organizations are increasingly outsourcing their procurement functions to specialized third-party vendors to benefit from reduced costs and improved supply chain efficiencies. This trend is expected to continue during the forecast period with increasing focus on streamlining healthcare delivery.
SWOT Analysis
Strength: Procurement outsourcing allows companies to focus on core business activities rather than non-revenue generating procurement tasks. It helps reduce procurement costs and improves procurement processes.
Weakness: Over-reliance on third party vendors can reduce control and increase compliance risks. Transition to a new outsourcing partner can be challenging and disruptive.
Opportunity: Growing adoption of procurement outsourcing in developing markets and industry verticals like healthcare provides new growth avenues. Advanced technologies like artificial intelligence and analytics are improving outsourcing service quality.
Threats: Economic slowdowns can impact client businesses and decrease outsourcing spend. Intense competition among outsourcing companies limits pricing power.
Key Takeaways
The Global Procurement Outsourcing Market Demand is expected to witness high growth over the forecast period of 2024 to 2030.
Regional analysis: North America currently accounts for the largest share of the procurement outsourcing market owing to widespread adoption by large enterprises. However, Asia Pacific region is expected to offer lucrative growth opportunities with countries like China, India and others rapidly adopting procurement outsourcing services. Growing inclination towards cost optimization coupled with expanding healthcare industry is fueling market growth in Asia Pacific.
Key players: 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. These companies are focusing on new service offerings, partnerships and geographic expansions to strengthen their market position.
For more details on the report, Read- https://www.marketwebjournal.com/procurement-outsourcing-market-growth-demand-and-overview/
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