Indirect Procurement BPO Market Report Overview
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The global indirect procurement BPO market size was USD 4063.01 million in 2021. As per our research, the market is expected to reach USD 6183.29 million in 2027, exhibiting a CAGR of 7.25% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with the indirect procurement BPO market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.
Indirect procurement BPO stands for indirect procurement business process outsourcing. It refers to the practice of outsourcing various aspects of indirect procurement processes to a third-party service provider. Indirect procurement involves the purchase of goods and services for a company to retain and grow its business. However, these goods and services are typically sourced for internal use by various business units or functions within the organization, as opposed to being directed towards external customers or clients. Additionally, these resources are sourced by different internal stakeholders or departments to meet their specific needs, enhancing the overall efficiency and effectiveness of the organization's business functions.
COVID-19 Impact: Shut Down of Industries Declined the Market Demand
Considering the impact of COVID-19, the market for indirect procurement BPO faced challenges during the pandemic. Due to lockdown restrictions and, closure of industries including the service sector, the pandemic disrupted BPO operations, particularly in regions heavily affected by COVID-19. This included disruptions in customer service, finance and accounting, human resources, and other outsourced functions that impacted service levels and client satisfaction. However, as this health emergency accelerated the adoption of digital technologies and emphasized cost optimization, it boosted the market potential which is expected to enhance the growth of this market.
Latest Trends
"Adoption of Technology and Automation Amplify Scope for the Market"
The market for indirect procurement BPO is experiencing significant growth due to various factors that are shaping its dynamics. One of the key trends in the market is the increasing adoption of technology and automation. Companies are leveraging advanced software solutions and digital platforms to streamline their procurement processes, reduce costs, and enhance efficiency. This trend is driven by the need for organizations to optimize their operations and gain a competitive edge in a rapidly evolving business landscape. In addition to this, another important trend in this market is the growing focus on strategic sourcing and supplier management. Companies are recognizing the importance of strategic partnerships with suppliers to ensure reliable and cost-effective procurement of goods and services. As a result, there is a rising demand for BPO providers that can offer expertise in strategic sourcing, supplier relationship management, and category management. Consequently, these trends are projected to elevate the growth of this market over this forecast period.
Indirect Procurement BPO Market Segmentation
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- By Type Analysis
According to type, the market can be bifurcated into Marketing, IT, Human resources, Facility management, and Others.
- By Application Analysis
Based on application, the market can be divided into CPG & Retail, BFSI Sector, Manufacturing Sector, Energy & Utilities, Hi-Tech & Telecom, Healthcare & Pharma, and Others.
Driving Factors
"Increasing Need for Cost Optimization Augment the Demand for BPO Service"
The main driving factor in this market is cost reduction. Companies are increasingly outsourcing their indirect procurement functions to third-party service providers in order to achieve cost savings. By engaging with specialized BPO firms that have expertise in indirect procurement, organizations can benefit from economies of scale, improved supplier management, and enhanced negotiation power.
"Globalization Drives the Growth of the Market"
Another considerable driving factor of the growth of the indirect procurement BPO market is globalization. As companies expand their operations globally, managing indirect procurement across different regions and markets can become complex. Indirect Procurement BPO providers often have a global presence and expertise, which can help organizations navigate international procurement challenges. As a result, these key driving factors are predicted to propel the indirect procurement BPO market growth during this projection timeframe.
Restraining Factors
"Data Security and Privacy Concerns Can Curb the Market Expansion"
However, despite these positive factors, there are also some restraining factors that can impact the market expansion. One main factor is data security and privacy concerns. As businesses entrust their procurement processes to third-party service providers, ensuring the confidentiality of sensitive information becomes crucial. Thus, this privacy concern can hamper the market’s growth.
Indirect Procurement BPO Market Regional Insights
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"North America is Expected to Dominate the Market due to its Mature Outsourcing Ecosystem"
According to market research, North America has a strong presence in the indirect procurement BPO market. It is projected to be a leading region due to its mature outsourcing ecosystem and emphasis on advanced technologies in procurement. Additionally, the U.S. plays a significant role in the region’s leading position with the presence of the major service providers and vendors in the country. Therefore, the region is expected to acquire the largest indirect procurement BPO market shares in the global marketplace.
Key Industry Players
"Key Players Offer a Wide Range of Procurement BPO Services to Cover Various Aspects of Indirect Procurement"
key players dominate the indirect procurement BPO market through their extensive global reach, diverse service offerings, advanced technology solutions, industry expertise, and proven track record. They provide tailored solutions to clients across various sectors, leveraging cutting-edge technologies and strategic partnerships to optimize procurement processes, ensure data security and compliance, and deliver cost savings and operational excellence. Furthermore, their client-centric approach, change management expertise, and established supplier relationships further solidify their leadership in the industry.
List of Market Players Profiled
- Infosys (India)
- Corbus (U.S)
- Accenture (Ireland)
- WNS (India)
- Genpact (U.S.)
- IBM (U.S.)
- GEP (U.S.)
- Wipro (India)
- Capgemini (France)
- Xchanging (U.K.)
- TCS (India)
Report Coverage
This report defines the indirect procurement BPO market. It emphasizes the market value, expected CAGR, and USD value over the forecast period, before and after the impact of the COVID-19 pandemic restrictions on the international market, and how the industry is going to turn the corner is also stated in the report. The report provides significant market data with its product type and product applications, end-use details, and an idea of the market growth in the future. This report also provides an understanding of the growing market trends and developments and their effects on the market growth, driving factors along with restraining factors that impact the market dynamics. Along with this, the leading region, key players of the market, and their tactics to beat the market competition, sustainable policies, their collaboration, mergers, companies’ profile, previous years’ revenue, profit & loss, and market position based on their share value in the market, are also explained in the report.
REPORT COVERAGE | DETAILS |
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Market Size Value In |
US$ 4063.01 Million in 2021 |
Market Size Value By |
US$ 6183.29 Million by 2027 |
Growth Rate |
CAGR of 7.25% from 2021 to 2027 |
Forecast Period |
2021-2027 |
Base Year |
2023 |
Historical Data Available |
Yes |
Regional Scope |
Global |
Segments Covered |
Type and Application |
Frequently Asked Questions
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What value is the global indirect procurement BPO market expected to touch by 2027?
The global indirect procurement BPO market is expected to touch USD 6183.29 million by 2027.
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What CAGR is the indirect procurement BPO market expected to exhibit during 2021-2027?
The indirect procurement BPO market is expected to exhibit a CAGR of 7.25% over 2021-2027.
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What are the key driving factors of the Indirect Procurement BPO market?
The increasing need for cost optimization and globalization are the key driving factors of the Indirect Procurement BPO market.
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What are the key players in the Indirect Procurement BPO market?
The key players in the Indirect Procurement BPO market include Infosys, Corbus, Accenture, WNS, Genpact, IBM, GEP, Wipro, Capgemini, Xchanging, and TCS are top players in the Indirect Procurement BPO market.