Procurement As A Service Market Analysis

Component (Strategic Sourcing, Spend Management, Process Management, Category Management, Contract Management, Category Management)

Based on the component segment, the strategic sourcing segment in the procurement as a service market is predicted to hold the largest share by 2037. Technological progress has made it more efficient for businesses to source and manage their supply chain, allowing them to lower costs and increase profits. The growing demand for the development of procurement functions within enterprises using technology will lead to procurement as a service market growth over the coming years. For example, TATA Consultancy Services Limited entered into a partnership with the Financial Ombudsman Service of the United Kingdom in April 2022.

In addition, the Ombudsman and TATA Consultancy Services have worked together to improve and develop TCS's digital services in a way that would make them more effective at eliminating complaints and discrimination as well as better serving and supporting clients. In order to ensure that the Ombudsman's technology capabilities are futureproofed, TCS will develop a new digital experience platform that is designed to improve the user experience of complainants and their responses.

Enterprises Size (SMEs, Large Enterprises)

Large enterprises segment is set to account for procurement as a service market share of more than 70% by the end of 2037. In order to manage complex contractual agreements and bag agreements, large companies will continue to use these services, taking a significant part of the overall revenue. These services are preferred by large companies, as they reduce operating costs and remove the complexity of doing business. Service providers are chosen by large enterprises because they reduce operating costs and simplify their operations.

Vertical Outlook (BFSI, Manufacturing, Retail, IT & Telecom, Healthcare)

In procurement as a service market, manufacturing segment is likely to showcase substantial growth rate till 2037. The ability of the technology to mitigate supply chain risks can be attributed to the growing use of PaaS solutions in the manufacturing sector. In addition, several companies are entering into strategic partnerships to develop novel solutions that help end users anticipate and mitigate supply chain problems.

For example, in November 2022, Corbus entered into a partnership with GIS for the procurement of supply chain services to enable customers in Europe, Latin America, North America, Asia, and the Middle East & Africa to benefit from infrastructure and resources.

Our in-depth analysis of the procurement as a service market includes the following segments: