Procurement outsourcing market to reach $12Bn by 2031: Valuates Reports
BENGALURU, INDIA — The global procurement outsourcing market shows significant growth, according to industry projections, which forecast annual expansion of nearly 12% from 2024 until 2031.
The market now evolves from basic staff augmentation to form strategic business partnerships that deliver more than traditional cost-saving benefits.
Strategic evolution driving market expansion
A research report from Valuates Reports shows the procurement outsourcing market reached $5.57 billion in 2024 and will grow to $11.97 billion by 2031 at an 11.7% annual compound growth rate (CAGR).
“The Procurement Outsourcing Market is shifting from tactical staff‑augmentation contracts to outcome‑based partnerships that encompass category strategy, supplier‑innovation programmes, and integrated payables,” notes the Valuates Reports analysis.
Specialized outsourcing partners now handle raw material and component purchases because manufacturers and retailers transfer their purchasing responsibilities to them. The service providers use aggregated purchasing power to obtain substantial discounts that single companies cannot obtain independently.
The banking, financial services, and insurance (BFSI) sector stands as a primary growth driver among all sectors. Financial institutions implement procurement outsourcing solutions to handle intricate regulatory needs while directing their internal talent toward vital business objectives.
Regional leadership and industry consolidation
The procurement outsourcing market remains under North American control, which leads the market with about 45% of worldwide dominance. The report identifies this regional strength to “mature shared-service ecosystems and a strong focus on cost [optimization] within publicly traded companies,” according to the report.
The Asia-Pacific region shows the highest growth rate among all markets because multinational companies establish new regional sourcing facilities throughout this region.
The global procurement outsourcing market shows IBM, Accenture, GEP, and Infosys as its leading competitors, who lead the market with more than 60% control. Capgemini and Genpact, as well as TCS, Xchanging Solutions, and WNS, form other important providers in the industry.
The industry continues to merge through strategic partnerships to establish complete source-to-pay platforms. New market participants have established business opportunities in specialized verticals as well as mid-size segments.
The report predicts continued double-digit growth because economic uncertainty, together with ESG imperatives and talent constraints, will establish procurement outsourcing as a fundamental component of enterprise resilience and value creation.
