SCM outsourcing market to expand by 16-18% CAGR by 2023
The market for supply chain management (SCM) business process services (BPS) will expand at a 16 to 18% Compound Annual Growth Rate (CAGR) between 2021 and 2023 as supply chain issues continue to hamper the global economy.
According to a report by management consulting company Everest Group, the top two business constraints for enterprises going into 2022 are the lack of talents and “bottlenecked” logistics.
Shirley Hung, partner at Everest Group, said that “Bboth of these corporate issues are contributing to rapid growth in the outsourcing market for SCM business process services.”
Although the overall SCM BPS market will expect a rapid growth by next year, the after-sales sector will grow the fastest — between 16 to 20% — compared to othe rsubfucntions because of its direct impact on customer satisfaction, brand image, and the top-line revenue of the organization.
The ongoing talent shortage will also boost the SCM BPS industry as Everest revealed that 32% of enterprises are intending to move about 19% of their operations outside their organizaion due to lack of capable workers.
Hung added that enterprises are increasing seeking third-party providers to help with their digital adoption, enable supply chain visibility, and inventory planning.
