Global Procurement Outsourcing Market to Grow at a CAGR of +14%

The report on the global Procurement Outsourcing market is a comprehensive overview of the market, covering various aspects such as product definition, segmentation based on various parameters, distribution channel, supply chain analysis, and the prevailing vendor landscape. It compiles exhaustive information sourced via proven research methodologies. The information of the Procurement Outsourcing market is accessible in a logical chapter-wise format. It is also interspersed with relevant graphs and tables to enable readers to get a better perspective of the global Procurement Outsourcing market.

The report, focuses on the global Procurement Outsourcing market, and answers some of the most critical questions stakeholders are currently facing across the globe. Information about the size of the market (by the end of the forecast year), companies that are most likely to scale up their competitive abilities, leading segments, and challenges impeding the growth of the market are given.

Procurement Outsourcing market

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Key Players:

Accenture, Capgemini, Genpact, GEP, IBM, Xchanging

Market segmentation of procurement outsourcing by end-user

Manufacturing sector, BFSI sector, Consumer packaged goods sector, Software and telecom sector, Energy and chemicals sector, Automotive sector, Pharmaceuticals sector, Hospitality sector, Others

This report considers the main regions i.e. North America, Middle East & Africa, Asia Pacific, Europe and Latin America. Top manufacturers in global market, their capacity, production, revenue, price and shares are covered in detail.

Microeconomic and macroeconomic factors which affect the Procurement Outsourcing market and its growth, both positive and negative, are also studied. The report features the impact of these factors on the ongoing market throughout the mentioned forecast period. The upcoming changing trends, factors driving as well as restricting the growth of the market are mentioned.

The major opportunity regions in the market and the top trends impacting the development of the market have also been introduced through this report. The present development and improvement patterns of this market have also been plotted in this study. The competitive scenario section of the report shields the crucial players and throws light on the policies being adopted by them for better perception into the market.

A bird’s eye view of the Procurement Outsourcing industry made available in the report helps readers to understand the key drivers, restraints, challenges, and opportunities that are shaping the global Procurement Outsourcing market. Furthermore, the report evaluates challenges experienced from buyers and sellers side. The report offers advice from key industry experts on how these challenges can be overcome.

A major chunk of the report talks about the technologies that are and will influence the growth of the Procurement Outsourcing market. Forecasts for these technology sectors are presented in the report. Integration is the key to advancement in technology in the global Procurement Outsourcing market. Companies that offers the latest integrated technologies at an affordable cost are expected to thrive in the Procurement Outsourcing market. The dominating technologies in the Procurement Outsourcing market along with the upcoming technologies that are expected to revolutionize the market are explained in the report

Source: -Global Procurement Outsourcing Market to Grow at a CAGR of +14% 

HfS Webinar: State of Business Operations 2017

The webinar will share the key findings of the State of Business Operations survey by HfS Research in conjunction with KPMG with 829 enterprise buyers, service providers, and advisor/consultants.

The outsourcing and shared services market has been in a seemingly endless state of flux for as long as HfS Research has existed – with the current market more confused than ever before, organizations struggling to cope with competing priorities, and confusion on the requisite timing and methods to best exploit new(ish) technologies such as process automation and evolving service delivery models.

Attend and learn:

  • Changes to organizational operating and service delivery models
  • The investments and directives driving operational change
  • The use of shared services, outsourcing, global business services, and the impact of automation and offshoring on these service delivery models
  • The maturity of business operating models linked to the use of alternative service delivery models and emerging technologies
  • Adoption levels, challenges, and opportunities related to process and cognitive automation
  • The effectiveness of outsourcing, above and beyond delivering cost savings, and impact on service provider selection
  • Stakeholders’ current view on service providers and future expectations
  • Organizational and operational talent challenges, shortages, and solutions, including automation


  • Phil Fersht – CEO & Chief Analyst, HfS Research
  • Jamie Snowdon – Executive Vice President, Research Operations, HfS Research
  • Dave Brown – Global Lead, Shared Services & Outsourcing Advisory, KPMG
  • Stan Lepeak – Director & Head, Research & Thought Leadership, Global Management Consulting, KPMG

Source: Webinar: State of Business Operations 2017

Outsourcing trends to watch in 2017

This year, we saw outsourcing integration challenges multiply, production workloads and enterprise systems hit the cloud, and security hit the top of the agenda.

So what’s ahead for 2017? Uncertainty for one thing. Industry watchers expect a number of shifts in the IT and business process services space — not least of which will be the initiation of more flexible outsourcing terms as the world watches and waits to see what happens once president elect Donald Trump takes office and Brexit takes hold.

We also expect to witness maturation in cloud computing, robotic process automation (RPA), and cognitive capabilities while entities like the call center and business models based solely on labor arbitrage fade into history. For more on what our outsourcing experts expect in 2017, read on.

1. Industry insecurity reigns

The coming year will be a time of uncertainty for the outsourcing industry, both within the U.S. and abroad. “It will be one of a handful of times that outsourcing will be affected by the political climate, says Rebecca Eisner, partner in Mayer Brown’s Technology Transactions practice. The new administration coming to power in the U.S. could have an impact on trade agreements, regulations, tax policies, visas and immigration–ultimately impacting the outsourcing industry, which continues to rely on the benefits of global labor arbitrage. Brexit only adds to industry anxiety in the U.K. and Europe.

Companies have already begun assessing and auditing their contracts to determine the impact, says Christopher A Seidl, partner and chair of the global business and technology sourcing group at Robins Kaplan. “In 2017, this will lead to deeper discussions between parties, and more renegotiations, over terms relating to currency, changes in the law, and the overall costs of the deal,” Seidl predicts. “They will also seek to add flexibility into their outsourcing arrangements through, for example, new termination rights, rights to move locations, rights to insource, and other similar protections,” Eisner says.

In the business process services space, the political environment and the higher-end work being outsourced will lead to more work being be delivered from onshore locations, predicts Rajesh Ranjan, partner with outsourcing consultancy Everest Group.

2. Security stays top of mind

Information and data security will continue to be a major concern over the next 12 months. “Traction for advanced security automation, threat intelligence, and security analytics solutions will continue to be robust as enterprises look to build a holistic approach to enterprise security and fend off business risks,” says Jimit Arora, partner in the Everest Group’s IT services division. “As-a-service models to scale security capabilities and dynamically support cloud-based workloads will also gather steam.”

Vendors will take more of a lead role in protecting the enterprise through security offerings, adds Seidl. “Vendors won’t simply be thought of as an entry point for hackers, but rather as an ally for regulators, politicians, and businesses who continue to be challenged in looking for solutions.”

3. Intelligent automation drives down costs

“Intelligent automation and robotic process automation will take a step function forward for certain providers, disrupting existing commercial outsourcing structures and driving down costs and, to a lesser degree, prices in the market,” predicts David Rutchik, executive managing director with outsourcing consultancy Pace Harmon. “This will result in supplier margin expansion, greater savings opportunities for enterprise buyers, the need for enterprises to renegotiate existing outsourcing deals, and the bifurcation of the ‘haves’ and ‘have nots’ in the marketplace.”

4. Customers demand more from cloud

The novelty of cloud computing adoption has worn off, and the grace period for providers is over. “Clients will force cloud providers to mature,” says Adam Strichman, founder of boutique outsourcing consultancy Sanda Partners. “Clients will become more savvy about what a cloud service really means, and these ‘me too’ cloud services are going to have to grow up or be kicked to the curb.” Customers will be looking to leverage cloud as the core platform for new internal and external initiatives, adds Arora. “Enterprises will demand significantly more value from cloud service providers to drive transformation in their business.”

5. Offshore providers pivot

“The days of unprecedented growth for the tier one offshore firms appear to be over,” says Chip Wagner, president and partner with Information Services Group (ISG) Business and Emerging Service. In addition to the potential impact of Brexit and a new U.S. administration as well as increasing automation, offshore providers are also dealing with currency exchange issues. All of that has lead to increased margin pressures and staff downsizing, says Wagner. “Clients will seek differentiation of solutions driven by automation and new technologies, as well as better governance to manage increasingly multiple smaller deals.”

Indian providers will significantly increase their functional capabilities in key process areas and build better organizational change management capabilities, says Rutchik. “This will enable them to compete more effectively with the IBMs and Accentures for more transformative and strategic work.” Look for acquisitions and hiring from U.S. and European consultancies.


Source: – Outsourcing trends to watch in 2017

Outsourcing in the UK on the rise, despite Brexit

Outsourcing in the UK has seen a significant rise in the first half of this year, compared to the same time last year, which is interesting knowing how Brexit vote turned out.

 The information came from customer service provider Arvato UK. Its recently released Outsourcing Index says that £3.91 billion worth of contracts were signed in the first half of 2016. That equals to 19 per cent year-on-year increase.

The majority, £2.20bn, came from the private sector.

“The UK market remained buoyant in the first half of the year despite the political and economic uncertainty in the run up to the EU referendum,” said Bryan Mouat, CEO, Arvato Financial Solutions UK & Ireland.

“This supports the view that organisations continue to see outsourcing as an effective strategy to tackle key challenges and fluctuation in demand, but it remains to be seen if the prolonged uncertainty following the vote to leave will dampen spending in the second half of the year.”

Value of the average contract increased 16 per cent in the first half of 2016, compared to the same period last year. Total value hit £47.5 million. Length also increased 14 per cent, to 59 months’ time, average.

When it comes to outsourced customer service, total spend hit £706 million in H1 2016. This is a ‘sharp rise’, compared to the £62 million worth of deals agreed in the first half of 2015.

 A vast majority (83 per cent) covered multi-channel services, compared to 50 per cent last year.

Source: in the UK on the rise, despite Brexit

The Trouble With Outsourcing IT for Larger Firms

According to cOutsource founder, Sal Sarosh, Mid-size and enterprise customers have largely stayed away from using freelancing platforms.

Although many companies continue to find success with outsourcing a lot of their work, according to Sarosh, the outsourcing structure, as it is today does nothing to offer larger firms the reliability they need. The need for innovation makes a turn over a less strategic option at a time when IT is strategic again.


Outsourcing is not a new phenomenon, it has been around since the mid-1980s. Companies in search of new ways to cut costs and to increase efficiency decided to outsource the work with the understanding that technology was a cost of doing business.

Why has the tide turned against IT outsourcing? The idea only made sense when companies viewed technology as a cost of doing business. The rise of digitization, big data analytics, and cognitive technologies has made IT strategic again. And it is often difficult to get innovative, differentiated outcomes when you turn IT over to someone else.

Tom Davenport, Why Companies Have Stopped Outsourcing IT

Although there are many reasons why larger firms may choose to apply their IT strategies in-house, Sal Sarosh believes that by providing something as simple as reliability can offer them the confidence to continue to explore outsourcing.

The unreliability of Outsourcing

Over the years, IT outsourcing vendors opened up offices in locations around the world looking for the best and brightest. This approach resulted in some success and enabled organizations to tap into a global pool of talent that was not available before. However, this model has now saturated and cost for IT outsourcing has gone up significantly, and quality of talent has come down drastically.

On the one hand, companies that outsource work do not end up getting their dream team of A+ players with both large and small outsourcing vendors. While smaller consulting firms have only limited talent and end up using not so qualified resources for projects, large enterprises tend to keep the billable rate high and use more junior talent for most of the work. On the other hand, companies end up paying way more money than they should. Some of the reasons for this are most consulting firms are bloated and end up with huge hierarchies that are not required. Other reasons are the need to maintain US-based sales teams and huge infrastructure costs.

Enterprises Stay Away

Enterprises have not adopted freelancing platform due to several factors. First, most enterprise projects require more than one or two resources and need someone to manage these resources. Usually, freelancing platforms do not provide access to a team. Second, managing freelancers from around the globe, given time zone, culture and communication challenges, becomes a nightmare and very few companies have had success with this. Third, even if companies overcome the first two challenges, there is no guarantee for the quality and security of the work product, and there is no one neck to choke to ensure deliverables are met. Finally, the reliability of the talent through a ranking system has not created the trust required for them to adopt these platforms.


Creating a pool of verified project managers with the ability to manage enterprise size project work.

We are providing a reliable and trusted way for enterprises to adopt freelancers. This is achieved by providing verified project managers in the US who compete with each other for enterprise project work. The best among them chosen by the customers are provided with tools and other freelance talent to manage the entire project. All project managers are background checked by us for communication and leadership skills and are experts at managing global teams. The global pool of freelance talent is verified by us for authenticity and filtered by the project manager for skills, talent, and fit for the project. Customer’s benefit from on-demand access to a labor force that is truly global, when they need it, where they need it and with the skills they need; trust and accountability comes through the project manager. In short, we have redefining IT outsourcing like never before.


We source a large pool of freelance talent in a wide variety of skills. Usually, this is done by posting ads on LinkedIn and other channels, direct solicitation through various channels, network effects, and other channels. This pool of talent is then verified for authenticity by validating their identity (i.e drivers license, etc). Once the freelance pool is verified, they compete with each other for the enterprise project work through profile and background, contributions to discussions, and direct interaction with project managers through the platform.


In addition, project Managers go through additional background check and interviews to make sure they have the communication, leadership skills required for the job. All project managers are based in the US and sign Non-Disclosure agreements with personal liability to ensure confidentiality of the information provided by the customer. Project managers compete with each other for enterprise project work, and the winning project manager is provided with the choice of freelancers they can select from and manage the work. The platform has ranking and rating of all freelancers, access to LinkedIn profiles of freelancers, and audio/video/chat integration between customers and project managers, and between project managers and other freelancers so they can discuss the project and shortlist the talent.


Source: Huffington Post-The Trouble With Outsourcing IT for Larger Firms

Brexit Decision Contradicts Beliefs of Britain’s Outsourcing Industry

Following Britain’s decision to leave the European Union, Kerry Hallard, CEO of the National Outsourcing Association, commented:

“This is certainly not the result that members of the National Outsourcing Association wanted; this is not the result that the British outsourcing industry as a whole wanted. That fact was clearly demonstrated back in March when we surveyed the UK outsourcing industry, and again just two days ago when we polled over 200 industry representatives on their beliefs regarding Britain’s EU membership at our NOA Symposium conference.”

In March, a survey conducted by the National Outsourcing Association found that 73% of the UK outsourcing industry believed Britain should remain part of the EU. A subsequent poll of over 200 industry representatives at the NOA Symposium 2016, conducted on Wednesday 22nd June, found that 84% wanted Britain to remain part of the European Union.

Ms Hallard continued: “Nevertheless, the people of Britain have decided to leave the EU, and it is vital now that our political and business leaders do everything they can to restore and maintain market stability as a new relationship with the EU is established. David Cameron must protect Britain’s businesses during his last few months as prime minister; the government and Conservative party must commit all of their resources to running the country to the best of their abilities at this highly turbulent time.

“It is also paramount that our government does everything it can to protect the rights of EU citizens living and working in the UK. The valuable skills they bring to the outsourcing industry and our country are essential to the wellbeing of our businesses and economy – they will be significantly missed if those individuals are forced to leave our country.”

Source: sourcingfocus-Brexit Decision Contradicts Beliefs of Britain’s Outsourcing Industry

Technavio Announces Top Seven Vendors in the Global IT Outsourcing Market Until 2019

Technavio has announced the top seven leading vendors for the global IT outsourcing market in their latest research report. This report also lists 13 other prominent vendors who are expected to contribute to this market’s growth over the forecast period.

Technavio announces top seven vendors in the global IT outsourcing market until 2019.

To identify the top vendors, Technavio’s market research analysts have considered the top contributors to the overall revenue of this market. To calculate the market size, the report considers revenue generated from infrastructure and application outsourcing services.

“Increased adoption of application outsourcing is predicted to fuel the growth of IT outsourcing until 2019. To meet the growing demand, vendors are providing application development outsourcing services that include modular architectures and are compatible with advanced IT infrastructures like cloud computing. In addition, IT outsourcing service providers are also developing applications that are embedded with intelligent systems for handling multiple features and high volumes of data,” said Amit Sharma, one of Technavio’s lead analysts for ITO and BPOs.

“For adding value to their service offerings, IT outsourcing service providers are giving prime importance to their clients’ application portfolio. Application development through DevOps and Agile are increasing innovative solutions for software development. Automation of applications is predicted to vastly improve performance of routine tasks over the next four years,” adds Amit.

Seven leading vendors in the global IT outsourcing market:


Accenture was incorporated in 2009 and is headquartered in Dublin, Ireland. The company provides management consulting, and technology and outsourcing services globally. As of August 31, 2014, the corporation had 305,000 employees across the world and reported a net revenue of close to USD 28.56 billion in FY2013 and USD 30 billion in FY2014.

Accenture provides IT professional services, including management consulting, technology, and outsourcing services to clients across a wide range of industries globally. The company serves the communications, electronics and high-tech, media and entertainment, banking, capital markets, insurance, health, public service, air, freight and travel services, automotive, consumer goods and services, industrial equipment, infrastructure, life sciences, retail, chemical, energy, natural resources, and utilities sectors.


Capgemini was founded in 1967 and is headquartered in Paris, France. It provides consulting, technology, outsourcing services, and local professional services. As of December 31, 2014, the company had 137,747 employees and the revenue generated by the company was close to USD 14.05 billion in the FY 2014. Some of its subsidiaries include Capgemini North America, Capgemini Oldco, Capgemini Consulting Österreich, Capgemini Magyarorszag, and Immobilière les Fontaines.

Capgemini focuses on the IT professional services market and has implemented various strategic initiatives for this market. In July, 2015, the company entered into a services agreement with SSP, a provider of insurance technology, to expand its legacy systems and digital ambition. Under this agreement, Capgemini can strengthen its deep insurance expertise, process improvement and systems integrator expertise across the insurance value chain. In May 2014, Capgemini France, a subsidiary of Capgemini, completed the acquisition of the French IT service company, Euriware (which provides advanced consultancy and IT services to the energy, industry, and defense sectors) and its subsidiaries.


CSC was founded in 1959 and is headquartered in Falls Church, Virginia, US. The company is a global leader in supplying next-generation IT services and solutions. The company offers a wide range of business solutions to various industries, including aerospace and defense, automotive, banking, chemical, communications, media and entertainment, energy, financial services, healthcare, life sciences, retail, technology, and travel and transportation. For FY2015, the company reported revenue of close to USD 12.2 billion and has around 70,000 employees in over 60 countries.


Fujitsu was established in 1935 and is headquartered in Tokyo, Japan. Fujitsu is an ICT company that offers a range of technology products, solutions, and services. The company operates in over 100 countries in Japan, EMEA, APAC, China, and the Americas. They provide solutions to various industrial and technology sectors such as automotive, healthcare, financial, retail, telecommunications, biometrics, smart network technology, and technical computing. The company has around 97,000 patents worldwide and has around 159,000 employees. For FY2015, the company generated revenue of around USD 43.25 billion.

Fujitsu offers innovative, managed solutions that enable employees to work more productively. Their offerings include virtual client services, classic client services, managed mobile, and unified communication and collaboration services. Fujitsu Virtual Client Services is a streamlined approach to desktop transformation harnessing Citrix virtualization technologies. Its classic client services provide employees with localized access to applications and data. The company also provides a complete life cycle management solution.


HP was founded in 1947 and is headquartered in Palo Alto, California, US. It is a global provider of products, technologies, software, solutions, and services to individual consumers, SMEs, and large enterprises. It has customers in various sectors such as government, health, and education. As of October 2014, the company has around 302,000 employees and more than 34,000 patents worldwide. This segment provides a broad portfolio of enterprise technology infrastructure solutions for a variety of operating environments. The company’s integrated solutions enable organizations of all sizes to efficiently utilize IT staffing resources and deploy applications faster.

The company offers a single-point-of-contact IT service desk software and solutions that utilizes a dependable set of automated processes to handle service delivery and support. It brings together a broad range of ITSM capabilities, big data, and social collaboration to enable a workforce with connected intelligence.


IBM was founded in 1911 and is headquartered in New York, US. The company provides a wide range of computer products and services. they offer various types of hardware, software, consulting, and infrastructure services. IBM serves various industries, including automotive, banking, chemicals and petroleum, communications, insurance, life sciences, media and entertainment, metals and mining, and retail. They have around 379,592 employees and operations in more than 175 countries. IBM offers a broad array of IT infrastructure and business solutions through two reportable segments that include global technology services and global business services.


Infosys was established in 1981 and is headquartered in Bangalore, India. Infosys is a global provider of business IT services, consulting, technology and outsourcing services, and software products. As of March 2015, the company had 176,187 employees and reported a net revenue of close to USD 8.71 billion. Globally, the company has 85 sales and marketing offices and 100 development centers.

During FY2014, the company reported revenue of around USD 8,711 million, an increase of 9.6% over the previous year, which generated around USD 6,041 million worth of revenue. This growth in revenue is attributed to, among other factors, an increase in the number and volume of executed projects.


Source: Announces Top Seven Vendors in the Global IT Outsourcing Market Until 2019