Procurement as a Service Market: - An Overview
Procurement as a service is an outsourced procurement model that combines technology, staff, and expertise to handle various procurement functions of the organization. It helps organizations to choose the categories for sourcing and assign category experts to handle purchasing for those categories.
Many procurement as a service providers make the process visible to the companies they work with, generally through a reporting portal. The demand for procurement as a service increases as the solution have access to analytics and the procurement tool so it can make reports, record inventory, and upload payments.
Impact of COVID-19 Pandemic Outbreak on Procurement as a Service Market
The Coronavirus (COVID-19) pandemic has created unprecedented challenges across health, social welfare, economies, and supporting supply chains.
Procurement can help companies minimize the pandemic’s economic impacts, support communities, and create new opportunities as economies rebound. Companies like Accenture and other procurement solution leaders are taking pragmatic, digitally-led steps to respond effectively to immediate and post-pandemic world challenges.
These actions help companies support employees and maintain business continuity in the short term and build responsible future business practices. Historically, the market for procurement as a service has grown by almost 7%-8% globally in the past 5 years.
In 2019, the total value of procurement as a service is estimated to be nearly US$ 6 Bn globally. Due to the COVID-19 outbreak, the supply chains on a global scale has disrupted and having to maintain business operations, fulfil urgent demands, and mitigate supplier challenges against a backdrop of significant disruption to their teams, their people and their local communities.
Procurement as a Service Market: - Market Dynamics
Artificial Intelligence and Machine Learning in the Procurement Process is driving the growth of Procurement as a Service Market
Artificial Intelligence allows procurement organizations to solve complex problems more efficiently and effectively using smart computing algorithms. AI can be embedded into a number of software applications from spend analysis to contract management and strategic sourcing.
Moreover, AI is automating or improving many time-consuming tasks or giving procurement experts additional insights based on extremely complex and large sets of data. As AI has the potential to rapidly change work practices across organizations, such digital transformation advancements is driving the demand for the procurement as a service market.
Growing Demand among Enterprises to Streamline the Procurement Processes
For long, the rise of digital technologies and its positive impact on procurement has been projected as a procurement trend.
The organizations are finally moving to adapt to cognitive procurement technologies such as Big Data Analytics, Machine Learning, Natural Language Processing, Artificial Intelligence, and Robotic Process Automation.
Additionally, the procurement function has to move from delivering cost savings to providing a strategic edge to the organization. To build a holistic supply chain and to drive enterprise-wide cost reductions, procurement has to utilize the maximum value out of digital technologies which would fuel the market growth.
Recruiting, Retaining, and Training Talent is slowing the Growth of Procurement as a Service Market
Procurement is a specialist field, and having knowledgeable and experienced personnel on the team is crucial.
It thus means there is need to pay particular attention to securing and retaining that talent, and providing the requisite support in relation to skills upgrade and continuing professional development.
However, due to the specialist nature of the area, there is a growing demand for such talent, with firms finding it difficult to retain such staff on a long-term basis which can be a restraint for the market.
Procurement as a Service Market: Key Players
Key players in the procurement as a service market are focusing on partnerships, agreements, collaborations, and acquisitions with the other players to increased productivity and sustained business growth. The major players offering Procurement as a Service include
The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain of the global procurement as a service market.
The report provides an in-depth analysis of parent market trends, macroeconomic indicators and governing factors along with procurement as a service market attractiveness as per segments.
The report on procurement as a service market also maps the qualitative impact of various factors on procurement as a service market segments and geographies.
Procurement as a Service Market: Report Highlights:
- A detailed overview of parent market of procurement as a service market
- Changing procurement as a service market dynamics in the industry
- In-depth segmentation of the procurement as a service market
- Historical, current, and projected procurement as a service market size by value
- Recent industry trends and developments in procurement as a service market
- Competitive landscape of the procurement as a service market
- Strategies for key players in procurement as a service and solutions and services offered
- Potential and niche segments, geographical regions exhibiting promising growth
- A neutral perspective on procurement as a service market performance
- Must-have information for procurement as a service market players to sustain and enhance their market footprint
Procurement as a Service Market: Segmentation
- Strategic Sourcing
- Spend Management
- Category Management
- Process Management
- Contract Management
- Transaction Management
- Retail and Consumer Packaged Goods
- IT and Telecom
- Energy and Utilities
- Travel and Hospitality
Market Research Methodology - Perfected through Years of Diligence
A key factor for our unrivaled market research accuracy is our expert- and data-driven research methodologies. We combine an eclectic mix of experience, analytics, machine learning, and data science to develop research methodologies that result in a multi-dimensional, yet realistic analysis of a market.