PROCUREMENT AS A SERVICE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Procurement As a Service Market Size and Trends

Global Procurement As a Service Market is estimated to be valued at US$ 7.03 Bn in 2024 and is expected to reach US$ 15.12 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 11.6% from 2024 to 2031.

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Global procurement as a service market is witnessing significant growth over the past few years. The rising need to improve operational efficiency and reduce overhead costs among organizations across various end-use verticals is driving the adoption of procurement as a service. Procurement as a service allows companies to focus on their core business activities while leveraging third-party expertise for sourcing raw materials and components. The growing popularity of spends analytics, E-procurement software and services, and automated procurement processes is also propelling the market forward. The factors such as globalization of business networks and increased demand for scalable and flexible procurement solutions are expected to boost the procurement as a service trend during the forecast period.

Growing preference for outsourcing non-core operations

In today's dynamic and competitive business landscape, companies are under constant pressure to streamline costs and focus their resources on core competencies that can help them gain competitive advantage. There is a growing preference among organizations to outsource support functions and non-revenue generating operations to specialist third-party providers. Procurement is one such functions that many companies prefer to delegate to experts as it involves complex processes, requires specialized skills and continuous technology upgradation. Managing sourcing, vendor negotiation, contract management and supplier performance in-house requires significant investment of time and capital. By outsourcing procurement through SAS platforms, organisations free up resources that can be channelled towards more strategic goals. They are also able to leverage subject matter expertise and best practices of specialist procurement firms to drive better outcomes. This is helping the procurement as a service market gain steady adoption across verticals.

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Increasing demand for scalable, customizable and compliant procurement platforms

Business environment are increasingly volatile with changing regulations, emerging technologies and evolving customer demands. Organizations need procurement solutions that offer flexibility to scale and adapt according to their dynamic requirements. Traditional on-premise procurement suites lack the agility and ease of configuration found in cloud-based platforms. Procurement as a service models allow organizations to leverage subscription-based, software-as-a-service tools that are easy to set up and require low upfront investments. These solutions are highly customizable based on an organization's specific procurement processes, spend categories and compliance policies. They also integrate seamlessly with other enterprise systems for a centralized procurement experience. The platform-based procurement services enable organizations to quickly scale user licenses, extend geographical reach and modify configurations in real-time. They ensure compliance with latest trade agreements and government policies. This scalability, customizability and regulatory compliance are compelling benefits driving the demand for procurement as a service solution.