Coming out on top: Growing awareness of the benefits of outsourcing is boosting revenue

Firms in the Procurement Outsourcing Services industry manage part or all of a company's procurement process. This 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, to acquire items or services that a company considers non-core to their business, such as travel management, as they have less experience in buying these services compared with industry players. 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 process.Industry revenue is expected to grow at an annualised 8.1%...read more.

Industry Statistics & Market Size
Revenue
$174m
Annual Growth 12-17
8.1%
Forecast Growth 17-22
Profit
Employment
936
Businesses
62
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Report - Industry Products Chapter

Industry operators provide third-party procurement services, including both direct and indirect procurement. Inputs to production and goods used in a client's core business are part of direct procurement. These goods are typically purchased frequently. Conversely, indirect procurement includes goods and services ancillary to an enterprise's core business. These include categories such as fleet management, utilities, IT services, HR services and travel services. Many of these products and services are purchased infrequently or on an ad hoc basis.Industry firms provide a variety of services that cover both direct and indirect procurement. These include sourcing products and services, providing transactional support, such as issuing purchase orders, and managing suppliers. Oth...purchase to read more.

Additional Insights for the Procurement Outsourcing Services Industry

IBISWorld identifies 250 Key Success Factors for a business.The most important for the Procurement Outsourcing Services Industry are

  • Undertaking technical research and development
  • Highly trained workforce
  • Ability to accommodate environmental requirements
  • 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

    What is the Procurement Outsourcing Services Industry?

    Companies in the industry act as a third party to provide 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

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    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

  • 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
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • 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
    There are no major players in this industry. This report includes analysis of other companies.
    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
    Table: Industry Data for the Procurement Outsourcing Services Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

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