by It reduce cost and increase operational efficiency by automating and streamlining tasks. Nowadays businesses adopting PAAS to focus more on core competencies instead of non-revenue generating procurement processes.
The Global Procurement As a Service Market is estimated to be valued at US$ 15.12 Bn in 2024 and is expected to exhibit a CAGR of 11% over the forecast period from 2024 to 2031.
Key Takeaways
Key players operating in the Procurement As a Service are Accenture plc, Aegis One Consults Ltd, CA Technologies, Capgemini, Corbus India LLP, F-code, GEP, Genpact, HCL Technologies Limited, IBM Corporation, Infosys Limited, Proxima Group, Simfoni Limited, Tata Consultancy Services (TCS), Wipro. Major players are investing in developing advanced digital platforms and technologies to gain competitive edge in the market.
Growing demand for cost optimization and visibility across the entire source-to-pay procedure is a major factor driving the adoption of procurement as a service. Organizations are adopting PAAS solutions to comply with regulatory requirements, reduce operating costs, manage vendor risks and ensure business continuity.
The Global Procurement As A Service Market Size is witnessing strong growth across regions due to increasing adoption of outsourcing services by Small and Medium Enterprises (SMEs). SMEs are widely adopting cloud-based PAAS solutions due to benefits such as low upfront costs, scalability and access to advanced technology expertise.
Market Key Trends
Automation is one of the key trends gaining foothold in the Procurement As A Service Market Size And Treads. Major players are focusing on developing AI-powered tools and solutions to completely automate the procurement process from raising purchase requisitions to logistics & records management. Automation helps reduce manual efforts, ensures compliance and standardizes procedures which benefits both service providers and procurements organizations.
Porter’s Analysis
Threat of new entrants: New players requires significant investments in establishing procure to pay capabilities that serve clients globally. They face high set up costs and established industry players dominate the market with their brand equity and client relationships.
Bargaining power of buyers: Buyers have moderate bargaining power as they can switch to alternate providers easily. However, switching costs and long-term contracts give some bargaining power to service providers.
Bargaining power of suppliers: A few large consulting and IT service providers dominate the market, giving them strong bargaining power over buyers for procurement services.
Threat of new substitutes: Procurement shared services and business process outsourcing are potential substitutes. However, technology led specialized procurement services have limited substitutes currently.
Competitive rivalry: The market is dominated by a few large players with global delivery capabilities. Intense competition on pricing and value added services.
Geographical Regions
North America accounts for the largest share of the procurement as a service market currently, valued at US$ 5.7 Bn in 2024. Large enterprises in the US and Canada are early adopters of outsourced procurement services.
Asia Pacific region is expected to be the fastest growing regional market, growing at a CAGR of 14.7% during the forecast period. China, India, Japan and Australia are major markets driving the growth in APAC, helped by growing digitization and need for cost optimization in procurement functions.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
About Author - Ravina Pandya
Ravina Pandya,a content writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemicals and materials, etc. With an MBA in E-commerce, she has expertise in SEO-optimized content that resonates with industry professionals. LinkedIn Profile
