HfS Blueprint Competitive Analysis – Procurement Outsourcing Services

The Procurement Outsourcing (PO) market (~$3.4B)  has quickly become one of the fastest growing BPO segments in the market (CAGR 12.4% over the next 5 years) as a result of piggybacking from a mature F&A offering.

Finance’s P2P linkages to procurement have allowed providers to quickly seek synergies between both functions to drive further value for customers.

Customers, savvy of their outsourcing relationships and the synergies that can transpire, have slowly been identifying newer areas ripe for outsourcing adoption to transpire. Combining both, the PO market has seen a real hotbed of activity in recent years and looks to be the fasting growing BPO service line for the next several years.

This Blueprint takes a detailed look into the PO market, underlining the relative strengths and challenges for vendors in this segment and identifies several key trends to consider going forward.