The global procurement as a service market size was estimated at USD 6.89 billion in 2024 and is projected to reach USD 22.10 billion by 2033, growing at a CAGR of 14.4% from 2025 to 2033. This growth is primarily driven by increasing demand among businesses for cost optimization, operational efficiency, and strategic sourcing across multiple industries.

Organizations are increasingly recognizing the benefits of outsourcing procurement functions to specialized third-party providers. By doing so, they can reduce overall procurement costs, streamline operations, and gain access to advanced technologies that enhance procurement performance. PaaS providers offer modular and scalable services, including spend analysis, supplier management, and category management, enabling companies to tailor solutions according to their specific requirements and stage of growth. This adaptability, combined with a focus on strengthening core business competencies, is driving adoption among both small and medium-sized enterprises (SMEs) and large corporations.

The rapid digital transformation across supply chains is another key factor fueling the growth of the PaaS market. Integration of cloud computing, artificial intelligence (AI), machine learning, and advanced analytics into procurement workflows enhances transparency, improves spend visibility, and facilitates data-driven decision-making. Enterprises increasingly rely on these digital tools to mitigate supply chain risks, ensure regulatory compliance, and advance sustainability initiatives, making technologically-enabled PaaS offerings particularly attractive. For example, in May 2024, GEP launched the industry’s first AI-powered Total Orchestration Solution, aimed at enhancing enterprise procurement and supply chain operations. This platform incorporates a built-in AI co-pilot, streamlining complex workflows and providing a more intuitive and efficient user experience, exemplifying the trend toward intelligent, digitally-driven procurement solutions.

Key Market Trends & Insights:

• North America dominated the global procurement as a service (PaaS) market, holding a revenue share of over 44.6% in 2024. The region’s leadership is driven by advanced technological infrastructure, high adoption of outsourcing strategies, and the presence of major procurement service providers.

• Within the region, the U.S. is expected to witness significant growth, registering a CAGR of 14.5% from 2025 to 2033, fueled by increasing investments in digital procurement platforms, AI-driven analytics, and strategic sourcing initiatives.

• Based on component, the strategic sourcing segment led the market, accounting for a revenue share of 31.9% in 2024. The prominence of this segment reflects the growing demand among organizations to optimize supplier selection, reduce procurement costs, and improve supply chain efficiency.

• By enterprise size, the large enterprises segment dominated the market and accounted for the largest revenue share in 2024. Large corporations typically manage complex procurement operations and higher transaction volumes, making PaaS solutions essential for operational efficiency and scalability.

• Based on vertical, the manufacturing segment held the largest revenue share in 2024. The dominance of manufacturing is due to the sector’s significant reliance on procurement functions for raw materials, components, and operational continuity, driving higher adoption of procurement as a service solutions.

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Market Size & Forecast:

• 2024 Market Size: USD 6.89 Billion

• 2033 Projected Market Size: USD 22.10 Billion

• CAGR (2025-2033): 14.4%

• North America: Largest market in 2024

• Asia Pacific: Fastest growing market

Key Companies & Market Share Insights:

Key players operating in the procurement as a service (PaaS) industry include Accenture, Genpact, GEP, IBM Corporation, and WNS (Holdings) Limited. These companies are actively pursuing a range of strategic initiatives, such as new product development, partnerships and collaborations, and strategic agreements, to strengthen their market position and maintain a competitive edge over rivals. The following examples highlight some of these initiatives.

In May 2025, Accenture partnered with SAP SE to support businesses in accelerating their digital transformation by enabling connected intelligence across enterprise operations in the era of artificial intelligence (AI). Their ADVANCE initiative integrates SAP’s comprehensive business suite, advanced applications, data analytics, and AI capabilities with Accenture’s deep industry expertise and implementation experience. Together, they provide preconfigured, AI-driven cloud solutions designed to modernize functions across finance, procurement, supply chain, and workforce management, helping organizations enhance efficiency, reduce costs, and drive innovation.

In April 2025, Infosys Limited announced a definitive agreement to acquire MRE Consulting Ltd., a technology and business consulting firm, to strengthen its capabilities in trading and risk management within the energy sector. This acquisition is intended to enhance Infosys’s advanced procurement solutions, particularly in energy procurement, commodity trading, and supply chain risk management. By leveraging MRE’s proprietary E/CTRM frameworks, Infosys aims to accelerate vendor selection, streamline solution design, and enable efficient implementation, thereby improving supply chain transparency and enhancing operational agility for its clients.

Key Players

• Accenture

• Aegis Components

• Capgemini

• Genpact

• GEP

• HCL Technologies Limited

• Infosys Limited

• IBM Corporation

• TATA Consultancy Services Limited

• Wipro

• WNS (Holdings) Limited

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Conclusion:

The procurement as a service market is on a strong growth trajectory, driven by widespread business demand for cost savings, greater operational efficiency, and more strategic sourcing practices across industries. As companies increasingly outsource procurement functions to expert third party providers, they gain access to advanced procurement technologies, modular and scalable services, and streamlined supplier management — making procurement more flexible and tailored to business needs. Digital transformation in supply chains, especially the adoption of cloud, AI, and analytics, is accelerating this shift by enhancing spend visibility, risk management, and decision making.