In Everest Groupís The Procurement Outsourcing Annual Report, it was found that the total value of contracts involved with procurement outsourcing has already reached $1.72 billion (£1.13 billion), and managed spend now amounts to $220 billion (£144 billion).
One of the key propellers of the procurement outsourcing market is the increased demand from tech firms and financial services. Meanwhile, consumer goods and manufacturing companies are still the biggest adopters of the practice.
Although it is uncommon to outsource direct spend to third party service providers, more and more companies are doing so. The top players taking up 50 percent of the market share in the procurement outsourcing segment are IBM and Accenture.
The study also revealed that a growing number of businesses are tapping different countries for new deals to reinforce their global expansion plans. Other firms that are looking to outsource procurement processes try it with spend analytics first to understand how it works.