Service Procurement Market size is expected to grow $1,011.6 Million by 2022

Service Procurement Market

Service procurement are adopted by companies across the globe, due to the increasing number of freelancers in the job market and growing impetus on workforce analytics. Hence, the providers of service procurement, with advancements in the Software-as-a-Service (SaaS) technology, are enhancing their solutions to boost their revenue growth. Strategic partnership is an important growth strategy adopted by the key market players to develop new services and gain traction in the service procurement market.

MarketsandMarkets expects the Service Procurement Market 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.

The Asia Pacific (APAC) market is expected to grow at the highest CAGR during the forecast period. The APAC region comprises key economies, such as China, India, Japan, Singapore, Malaysia, and Australia. The region is expected to record the highest adoption rate of service procurement, owing to the presence of a large number of Small and Medium-sized Enterprises (SMEs) which are inclined toward the adoption of cloud-based service procurement. The growing adoption of cloud technologies and the presence of a broad customer base are driving the adoption of service procurement across enterprises in APAC.

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The telecom & IT vertical is expected to be the fastest-growing vertical in terms of the adoption of service procurement during the forecast period. The vertical requires service procurement for resource scheduling, freelancers and temporary workforce; and to keep pace with the market changes and emerging competitions. Moreover, the vertical is highly focused on technology adoption and innovation for delivering the best to its customers and remains at top in this competitive market.

The cloud deployment type is expected to grow at a higher CAGR during the forecast period. Companies are deploying solutions in the cloud to improve mobility, collaboration of data, and reduction of data loss during the transit. Moreover, it takes care of the latest version of the software every time and gets installed at the earliest. Due to these advantages, many vendors are switching from on-premises deployment mode to the Software-as-a-Service (SaaS)-based mode. The cloud deployment is gaining more popularity, due to its competitive advantage over the on-premises deployment mode.

The SMEs segment is expected to grow at a higher CAGR during the forecast period. Organizations with less than 1,000 employees are categorized as SMEs. SMEs use freelancers and temporary workforce according to project requirement as a cost optimization method over hiring permanent employees. More than large enterprises, SMEs face resource crunch and require methods to solve the complexities for better cost optimization on their assets and requirements. The increasing usage of cloud-based offerings among various organizations has led to the implementation of service procurement solutions among SMEs as well.

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Service procurement consist of freelancer management, contingent workforce management, statement of work procurement, analytics and reporting, resource sourcing and tracking, and service governance and MSA management. Major vendors of service procurement include 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 players have adopted various growth strategies, such as partnerships, collaborations, agreements, mergers and acquisitions, and new product developments, to grow in the service procurement market.