P2P outsourcing: Key market research findings
- The Americas to dominate the market geographically
- The manufacturing sector accounts for a majority of the market’s revenue
- Key vendors – Accenture, Capgemini, IBM, GEP, Infosys, and TCS
Technavio’s market research analysts predict the global P2P outsourcing market to grow at a CAGR of almost 16% between 2016 and 2020. The market’s growth is fueled by the modernization of indirect procurement processes. Organizations are modernizing their indirect procurement processes to achieve cost reduction and add value to the bottom line. Outsourcing of indirect procurement functions can save significant amounts of money as well as increase the bottom line. During 2015, the Americas dominated the global procure-to-pay (P2P) outsourcing market by accounting for a market share of more than 46%. The outsourcing of procurement processes among industry verticals such as the banking, financial services, and insurance (BFSI), healthcare, manufacturing, and telecom sector is expected to propel growth in the P2P outsourcing market in the Americas during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the P2P outsourcing segments based on the end-user.
“Of late, there has been a rise in the e-procurement outsourcing services. E-procurement outsourcing activities involve IT-related services and processes to provide an online platform for companies to execute e-procurement process. E-procurement outsourcing services include outsourcing of IT support services, online platform management systems, and e-procure systems. Besides, cloud-based e-procurement services are also gaining popularity in the market due to their unique and flexible pricing model,” says Amit Sharma, Lead Analyst, ICT, Technavio Research.
In 2015, the manufacturing segment accounted for almost 21% of the market share to become the key revenue generator in the global P2P outsourcing market. P2P solutions help organizations to reduce their supply chain risks and expenses by integrating advanced analytical solutions in the procurement process. Predictive analytical solutions help estimate the exact amount of raw materials required to manufacture a certain product.
The key vendors in the global P2P outsourcing market include Accenture, Capgemini, IBM, GEP, Infosys, and TCS. The market is dominated by a few large vendors who distinguish their products with innovative and high-quality services. Several companies in the market are opting for automation of processes, simplification of the IT environment, and development of an economical cost structure, which will be beneficial for creating a favorable spending environment for procurement outsourcing during the forecast period. Competition in the market will intensify with the emergence of new players who offer specific P2P solutions like cloud-based procurement solutions to grab P2P outsourcing deals.
A more detailed analysis is available in the Technavio report, Global P2P Outsourcing Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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