The service procurement market is expected to grow from USD 579.5 Million in 2017 to USD 1,011.6 Million by 2022, at a Compound Annual Growth Rate (CAGR) of 11.8% during the forecast period.
Several factors such as the increasing number of freelancers in the job market, growing impetus on workforce analytics, and effective management of spending on contractual workers, are driving the growth of the service procurement market. Moreover, an increasing adoption rate of services procurement solutions by several industry verticals, such as telecom, manufacturing, BFSI, and information technology, is expected to boost the service procurement market growth.
Services procurement solutions facilitate organizations to hire human resources and automate various service governance activities in managing the life cycle of external workforce. The solutions help organizations better manage spend and gain control of its operations. The trend of services procurement from Managed Service Providers (MSP) is growing among most of the industry verticals, and the usage of mobile devices and cloud deployment is transforming the market.
Services procurement solutions help organizations make decisions using a comprehensive analysis and reporting of information generated throughout the life cycle of the external workforce. The growing requirement for automation, need for data-driven businesses, and the increasing use of social media and smartphones for enhanced collaboration and spend management are expected to drive the demand for services procurement solutions.
The evolution of services procurement technologies has transformed various MSP and vendor management for organizations that depend on considerable external workforce for carrying out various projects. The automation of various processes, such as timesheet approval and generation of statement of work procurement. The services procurement solutions help organizations to control and reduce expenditure by helping them increase the employee visibility and MSP management.
The service procurement market is expected to gain more traction, due to more opportunities, with the advancement of mobile devices and workforce analytics. Organizations are offering services procurement solutions empowered with mobile applications to approve timesheets for managers and govern resources to gain control over the spend. Organizations across the world are expected to adopt these solutions to hire contractors, consultants, and other external workforce.
North America is expected to be the largest revenue generating region for vendors of services procurement solutions over the next 5 years, followed by Europe. This is mainly due to the presence of developed economies, such as Canada and the US, and the focus on innovations obtained from R&D and technologies. Asia Pacific (APAC) is expected to be the fastest-growing region in the service procurement market.
The market's growth in the emerging economics of APAC and the Middle East and Africa (MEA) is expected to be high due to the rapid adoption of emerging trends, such as mobility and the cloud. The MEA and Latin American regions are gradually adopting the services procurement solutions, which empowers organization in these regions to manage the external workforce efficiently while leveraging the benefits of the cost-effective solutions.
Major global vendors of services procurement solutions are SAP Fieldglass (US), Beeline (US), DCR Workforce (US), PRO Unlimited (US), PeopleFluent (US), Provade (US), PIXID (France), Upwork (US), Field Nation (US), WorkMarket (US), Superior Group (US), Enlighta (US), and TargetRecruit (US).
These vendors have adopted various organic and inorganic growth strategies, such as new product launches, partnerships and collaborations, and mergers and acquisitions, to enhance their position in the service procurement market.
Key Topics Covered:
2 Research Methodology
3 Executive Summary
4 Premium Insights
5 Market Overview
6 Service Procurement Market, By Component
7 Service Procurement Market, By Deployment Type
8 Market By Organization Size
9 Service Procurement Market, By Industry Vertical