Source of success: A rising number of businesses has increased demand for industry services

Firms in the Procurement Outsourcing Services industry manage part or all of a client's procurement process, which can range from transactional services, such as processing purchase orders, to sourcing and maintaining relationships with suppliers. Many companies use industry services for indirect procurement. For example, a firm might use a procurement company to acquire items or services it considers non-core to its business, such as travel management, as a procurement company will likely have more experience in purchasing these services compared with the client. Downstream markets, which range from large manufacturers and government agencies to small retailers, also hire procurement outsourcers for direct procurement, which involves purchasing key inputs for production processes...read more.

Industry Statistics & Market Size
Revenue
$200m
Annual Growth 14-19
5.9%
Forecast Growth 19-24
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Profit
x.x%lock
Employment
1,083
Businesses
100
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Positive business confidence has increased the pool of potential industry customers
  • Businesses have increasingly turned to industry services to maximise cost savings
  • Profit margins are projected to weaken as new entrants boost industry competition

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    Industry Report - Industry Investment Chapter

    Capital intensity is low in the Procurement Outsourcing Services industry. For every dollar the industry invests in capital, an estimated $33.31 is expected to be paid as wages in 2018-19. This low capital-intensity is due to industry firms relying on highly skilled employees that understand transactional procurement tasks and supplier negotiation. Over the past five years, firms have developed more sophisticated and automated computer systems to reduce costs and enhance efficiency for clients, supporting rising depreciation expenses...purchase to read more.

    Additional Insights for the Procurement Outsourcing Services Industry

    IBISWorld has determined the most important Key Success Factors for the Procurement Outsourcing Services are:

  • Undertaking technical research and development
  • Highly trained workforce
  • Ability to effectively communicate and negotiate

    • IBISWorld analysts also discuss how external factors such as Business confidence index and Number of businesses in the Procurement Outsourcing Services industry impact industry performance..

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    What's in this report

    Industry Products

    What is the Procurement Outsourcing Services Industry?

    Industry companies act as a third party, providing procurement services for clients, including direct and indirect procurement. Procurement outsourcing allows client companies to reduce costs, improve efficiency and enhance performance.

    Industry Products
  • Transactional services
  • Strategic services
  • Supplier management
  • Analytics and other services
    • Industry Activities
  • Direct procurement
  • Indirect procurement
    • Table of Contents

    About this Industry

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources

    Industry at a Glance

    Industry Statistics Snapshot
    Industry Structure
    Executive Summary

    Industry Performance

    Executive Summary
    Key External Drivers
  • Business confidence index
  • Number of businesses
  • Capital expenditure by the private sector
  • IT and telecommunications adoption
  • Total business profit

    • Current Performance
  • Industry characteristics
  • Demand drivers
  • Participation and profit
  • Chart: Revenue Growth

    • Industry Outlook
  • Demand outlook
  • Increasing complexity
  • Challenges
  • Table: Procurement Outsourcing Services Industry Revenue Outlook

    • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Procurement Outsourcing Services Industry Lifecycle vs The Economy

    • Products & Markets

    Supply Chains
    Key Buying Industries
  • Clothing Retailing
  • Consumer Goods Retailing

    • Key Selling Industries
  • Computer and Electronic Office Equipment Manufacturing
  • Computer and Software Retailing
  • Office Property Operators

    • Products & Services
  • Transactional services
  • Strategic services
  • Supplier management
  • Analytics and other services
  • Chart: Procurement Outsourcing Services Industry Products and Services Segmentation

    • Demand Determinants
    Major Markets
  • Large firms
  • Small- to medium-size businesses
  • Chart: Major Market Segmentation for the Procurement Outsourcing Services Industry

    • International Trade
    Business Locations
    Chart: Business Locations by State

    Competitive Landscape

    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Procurement Outsourcing Services

    • Basis of Competition
  • Internal competition
  • External competition

    • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Procurement Outsourcing Services Industry

    • Industry Globalization

    Major Companies

    There are no major players in this industry. This report includes analysis of other companies.

    Operating Conditions

    Capital Intensity
  • Chart: Level of Capital Intensity for the Procurement Outsourcing Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

    • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

    • Regulation & Policy
    Industry Assistance

    Key Statistics

    Table: Industry Data for the Procurement Outsourcing Services Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

    • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data

    Jargon & Glossary

    Direct Procurement
  • Goods and services used in the creation of goods or services purchased by a business's clients.
    • Indirect Procurement
  • Goods and services bought for the internal use of a business, but not directly used in the creation of goods or services purchased by the business's clients.
    • Outsourcing
  • The contracting out of a business process to an independent third party.
    • What Our Customers Say
    Why buy this report?

    The Procurement Outsourcing Services market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Procurement Outsourcing Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Procurement Outsourcing Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Procurement Outsourcing Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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