by This allows businesses to focus on core competencies while benefitting from spend expertise, process standardization and analytical insights.
The Global Procurement Outsourcing Market is estimated to be valued at US$ 25.15 Billion in 2024 and is expected to exhibit a CAGR of 8.9% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the procurement outsourcing market are 3M, Cardinal Health, Smith+Nephew, Genadyne, DeRoyal Industries, Inc., Medela AG, Convatec Inc., Mölnlycke Health Care AB, PAUL HARTMANN AG, ATMOS MedizinTechnik GmbH & Co. KG, Talley Group Ltd, Cork Medical, LLC, and Devon Medical Products. Demand for procurement outsourcing is growing as companies aim to reduce operational costs and focus on core business areas. The market is also expanding globally as procurement outsourcing service providers enter new geographic regions and industries.
Market Key Trends
One of the key trends in the Procurement Outsourcing Market Size is the rise of strategic sourcing. Procurement outsourcing providers are moving beyond transactional activities and offering advanced analytics and consulting to help optimize spend. Strategic sourcing helps businesses discover new cost-saving opportunities, manage supply risk, enhance supplier relationships and drive innovation. This trend is allowing procurement outsourcing to deliver higher value and transform into a strategic function for companies.
Porter’s Analysis
Threat of new entrants: The procurement outsourcing market is moderately difficult to enter as it requires technical skills and managing suppliers. Existing players have strong brand recognition and supplier relationships.
Bargaining power of buyers: Large healthcare organizations have significant bargaining power over outsourcing companies due to their bulk buying ability. They can negotiate on price and drive competition between suppliers.
Bargaining power of suppliers: Suppliers of medical devices and products have moderate to high power as outsourcing firms rely on them for steady supply. Suppliers can influence pricing and delivery schedules.
Threat of new substitutes: There is no direct substitute for outsourcing procurement functions. However, healthcare providers can decide to internalize these activities, reducing demand for third party procurement services.
Competitive rivalry: The market has the presence of global as well as domestic players. Competition is based on service quality, innovation, cost competitiveness and buyer relationships.
Geographical Regions
North America accounts for the largest share of the procurement outsourcing market, with the US being the major contributor. This is attributed to the large healthcare expenditure and presence of major market players in the region.
The Asia Pacific region is expected to grow at the fastest rate during the forecast period. This is due to rising medical tourism, increasing healthcare infrastructure and spending in countries such as India, China and Japan. Countries are looking to improve access and reduce treatment costs through strategic sourcing partnerships.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
About Author - Ravina Pandya
Ravina Pandya,a content writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemicals and materials, etc. With an MBA in E-commerce, she has expertise in SEO-optimized content that resonates with industry professionals. LinkedIn Profile
