Amid ongoing economic uncertainties and cost pressures, enterprises are evolving their Procurement Outsourcing (PO) engagements to optimize value, enhance RoI, and achieve improved outcomes. Providers and enterprises are collaborating to bridge the gap between expected and delivered value by understanding and aligning on desired outcomes throughout the procurement value chain. Value drivers along the Source-to-Pay (S2P) value chain vary based on the nature of processes and their strategic importance. Additionally, the nature and volume of spend, as well as the categories outsourced, impact these value drivers. There is a notable increase in the adoption of innovative pricing models that offer greater flexibility, enable risk/reward sharing, and incentivize better performance to drive desired outcomes.

In 2022, the PO market grew significantly as providers expanded their scope into strategic procurement areas and improved penetration across various regions and industries. However, starting early in 2023, prevailing economic uncertainties slowed buyer decision-making, resulting in growth moderation. Despite this, decent growth is anticipated as enterprises seek support from providers to navigate uncertainties and manage costs.

This research provides comprehensive coverage of the PO market, analyzing it across aspects such as regional/industry variations, buyer adoption trends, and growth drivers. The report will be relevant for stakeholders interested in establishing agile and resilient procurement functions with differentiated capabilities. This includes new buyers / parent organizations exploring procurement outsourcing, service providers, and industry influencers such as investors and industry bodies.

Scope

• All industries and geographies
• This research leverages our interactions with 23+ leading PO service providers worldwide

Contents

This report examines:

• Value from PO function
• Capturing value through innovative pricing constructs
• PO market overview and adoption trends
• Key buyer adoption trends

Membership(s)

Procurement and Supply Chain

Sourcing and Vendor Management