Procurement outsourcing services is a process in which company involves external service provider to manage their core and non-core purchase transactions and expenditures. This helps to allocate important resources to work on strategic initiatives and handle important business activities. Procurement outsourcing services reduce operational costs, increase savings on investments, and improve businesses. Procurement outsourcing involves operations such as stock management, cost management, 24*7 delivery, supplier management, warehouse and packaging management, etc.
Increasing demand for impactful procurement continues to run high in terms of managing cost and unleashing potential of supply market to differentiate business performance. Traditional constraints of manpower, expertise, and policy-driven process may act as a challenging factor for the target business.
Increasing technological advancements and innovative product launches by manufacturers or service providers will create potential revenue opportunities for procurement outsourcing across the globe.
Currently, rising adoption of new IT solutions along with new consumer demands in different organizations and increasing focus on develop and improve business process automation across various industries.
Types of procurement outsourcing are direct procurement and indirect procurement. Direct procurement is a process of acquiring raw materials and goods for production or providing services. Generally, this purchase is done for large quantities, it acquired from a pool of suppliers at best possible cost, quality, and reliability. If direct procurement stops working or may face any problems, companies are no longer able to manufacture product and create revenue.
Indirect procurement required to keep day to day business activities. It includes repairing equipment, buying office supplies or acquiring services, etc. Without indirect procurement functions, businesses cannot operate effectively.
Procurement outsourcing service is used across various industrial applications such as CPG and retail and BFSI sector. The BFSI sector is majorly using procurement outsourcing services for better management and improve operational efficiency.
Early adoption of new and advanced technologies, increasing digitization, and high consumer base use these services across various countries in this region can lead to high demand for procurement outsourcing services to a significant extent. In Europe and South America, similar trend such as rising awareness of such technology or services and their benefits will result in rising adoption rate of procurement outsourcing in various industries in the years to come.
Procurement outsourcing services providers are focusing on development of new method of offering services, technology and tools, investments for research and development, and strategic partnerships and agreements with other organizations in order to expand their business and improve product offerings.
Some of the major players operating and profiled in the global procurement outsourcing market report include IBM, Accenture, GEP, Infosys, Capgemini, Genpact, TCS, Xchanging, and WNS. Apart from these company’s Aquanima, Optimum Procurement, Corbus, LLC, Wipro Limited, Infosys Ltd., HCL Technologies, etc., are some other service providers of procurement outsourcing.
