Procurement Outsourcing Market is driven by Need of cost optimization
Procurement outsourcing refers to the process of outsourcing procurement activities related to sourcing, purchasing, and expediting non-core business materials and services to a third-party service provider to gain expertise and reduce costs. Key advantages of procurement outsourcing include saving costs on procurement headcounts, operations, and infrastructure; improving service quality through dedicated expertise; and gaining insights into market conditions and developing strategies. The growing needs for organizations to focus on their core competencies and enhance supply chain visibility is increasing the demand for procurement outsourcing services globally.
The Global Procurement Outsourcing Market is estimated to be valued at US$ 25.15 Bn in 2024 and is expected to exhibit a CAGR of 8.9% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Procurement Outsourcing 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. Major key players are focusing on enhancing their service capabilities through strategic acquisitions and partnerships.
The growing demand for centralized procurement operations to gain sustainability and visibility across global supply chains is one of the major factors driving the growth of the procurement outsourcing market. Organizations are increasingly outsourcing procurement activities to third-party vendors to benefit from their domain expertise and global sourcing network.
The Procurement Outsourcing Market Size is witnessing significant growth in regions like Asia Pacific and Middle East & Africa. Rapid industrialization and growth of end-use industries in developing countries are creating substantial opportunities for procurement outsourcing vendors looking to expand globally.
Market Drivers
The need for cost optimization is a key driver propelling the procurement outsourcing market growth. Outsourcing procurement activities allows organizations to reduce procurement operating costs through economies of scale benefits with third-party expert providers. It helps in gaining access to advanced procurement technologies, global sourcing capabilities and process efficiencies leading to significant overall cost savings. This is encouraging more companies to rely on procurement outsourcing.
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