A three-pronged approach was followed for deducing the procurement as a service market estimates and forecasts. The process has three steps: information procurement, analysis, and validation. The whole process is cyclical, and steps repeat until the estimates are validated. The three steps are explained in detail below:
Information procurement: Information procurement is one of the most extensive and important stages in our research process, and quality data is critical for accurate analysis. We followed a multi-channel data collection process for procurement as a service market to gather the most reliable and current information possible.
Analysis: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilized different methods of procurement as a service market data depending on the type of information we’re trying to uncover in our research.
Market Research Efforts: Bottom-up Approach for estimating and forecasting demand size and opportunity, top-down Approach for new product forecasting and penetration, and combined approach of both Bottom-up and Top-down for full coverage analysis.
Value-Chain-Based Sizing & Forecasting: Supply-side estimates for understanding potential revenue through competitive benchmarking, forecasting, and penetration modeling.
Demand-side estimates for identifying parent and ancillary markets, segment modeling, and heuristic forecasting.
Qualitative Functional Deployment (QFD) Modelling for market share assessment.
Market formulation and validation: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilize different methods of data analysis depending on the type of information we’re trying to uncover in our research.
Market Formulation: This step involves the finalization of market numbers. This step on an internal level is designed to manage outputs from the Data Analysis step.
Data Normalization: The final market estimates and forecasts are then aligned and sent to industry experts, in-panel quality control managers for validation.
This step also entails the finalization of the report scope and data representation pattern.
Validation: The process entails multiple levels of validation. All these steps run in parallel, and the study is forwarded for publishing only if all three levels render validated results.
The procurement as a service market was categorized into four segments, namely component (Strategic Sourcing, Spend Management, Process Management, Category Management, Contract Management, Transaction Management), enterprise size (SMEs, Large Enterprises), vertical (BFSI, Manufacturing, Retail, IT & Telecom, Healthcare), and regions (North America, Europe, Asia Pacific, Latin America, Middle East & Africa).
The procurement as a service market was segmented into component, enterprise size, vertical, and regions. The demand at a segment level was deduced using a funnel method. Concepts like the TAM, SAM, SOM, etc., were put into practice to understand the demand. We at GVR deploy three methods to deduce market estimates and determine forecasts. These methods are explained below:
Demand estimation of each product across countries/regions summed up to from the total market.
Variable analysis for demand forecast.
Demand estimation via analyzing paid database, and company financials either via annual reports or paid database.
Primary interviews for data revalidation and insight collection.
Used extensively for new product forecasting or analyzing penetration levels.
Tool used invoice product flow and penetration models Use of regression multi-variant analysis for forecasting Involves extensive use of paid and public databases.
Primary interviews and vendor-based primary research for variable impact analysis.
The procurement as a service market was analyzed at a regional level. The globe was divided into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, keeping in focus variables like consumption patterns, export-import regulations, consumer expectations, etc. These regions were further divided into nine countries, namely, the U.S.; Canada; the UK.; Germany; China; India; Japan; Brazil; and Mexico.
All three above-mentioned market research methodologies were applied to arrive at regional-level conclusions. The regions were then summed up to form the global market.
The procurement as a service market was analyzed via companies operating in the sector. Analyzing these companies and cross-referencing them to the demand equation helped us validate our assumptions and conclusions. Key market players analyzed include:
Accenture - Accenture is a renowned consulting firm that offers management consulting, technology, and outsourcing services. The company operates through five distinct business units: media & communications technology, financial services, products, resources, and health & public service. Within its service segment, Accenture provides a wide range of offerings, including application services, artificial intelligence, business process outsourcing, zero-based budgeting, and more. These solutions and services cater to industries and sectors, such as aerospace & defense, automotive, banking, communications, media, and industrial equipment.
Capgemini - Capgemini offers a comprehensive range of services, including consulting, digital transformation, and technological and engineering services. The company operates primarily through three business segments: application & technology, operation & engineering, and strategy & transformation. Capgemini's procurement as a service offering covers various services, such as strategic sourcing, supplier management, procurement analytics, contract management, and spend analysis. Additionally, the company provides solutions and services to diverse industries, including financial services, manufacturing, consumer goods & retail, public sector, energy & utilities, and IT & telecom.
Genpact - Genpact is an internationally recognized professional services firm that provides a wide range of services. The company's offerings are divided into two main segments: Core Industry Operations and Enterprise Services. Under the Core Industry Operations segment, Genpact assists its clients in designing, transforming, and managing their operations to meet their unique business needs. On the other hand, the enterprise services provided by Genpact include CFO advisory services, finance and accounting services, supply chain management, sourcing and procurement, sales and commercial services, and environmental, social, and governance services. Genpact caters to various industries, such as financial services, consumer goods, healthcare, high-tech, and manufacturing.
GEP - GEP is a renowned global leader providing integrated procurement and supply chain solutions. The company offers various managed services, including procurement outsourcing, supply chain services, strategic sourcing, procure-to-pay, source-to-contract, procurement support services, and category management. Moreover, GEP provides various procurement consulting services, such as procurement transformation, opportunity assessment, strategic cost management, M&A services, and supply risk management. GEP has developed advanced technology platforms known as "GEP SMARTTM" and "GEP NEXXE" to facilitate efficient supply chain management and source-to-pay processes. These platforms offer comprehensive end-to-end solutions. Furthermore, GEP's Global Regional Integrated Delivery operating model enables clients to leverage the expertise of their skilled team of global category specialists.
HCL Technologies Ltd. - HCL Technologies Limited is a provider of IT and engineering services and solutions. The company operates in three segments: IT & business services, engineering and R&D services, and products and platforms. It offers services such as marketing, contract management, sales support, order management, billing, collections, procurement, and HR operations to meet different business needs, including fulfillment, service management, and support assistance. HCL Technologies serves clients from various industries and sectors, including manufacturing, financial, consumer, healthcare, and public services.
Infosys Limited - Infosys Limited provides various services, including business consulting, information technology, and outsourcing. The company utilizes cutting-edge technologies such as robotics, machine learning, artificial intelligence, rich content visualization, predictive analytics, and mobile technologies to deliver innovative solutions to its clients. These solutions cover various areas, including customer service, finance and accounting, human resources, BPM analytics, sourcing and procurement, sales and fulfilment, digital interaction services, and business transformation services. Infosys Limited operates across multiple industries, including communication and services, energy and utilities, financial services, healthcare, insurance, manufacturing, media and entertainment, retail, CPG, logistics, EdTech, and business transformation services.
IBM Corporation - IBM Corporation is a renowned technological solutions and services provider. The company caters to various industries, including electronics, education, aerospace & defense, automotive, banking & financial, energy & utilities, healthcare, insurance, life science, government, and electronics. IBM Corporation operates through five distinct business segments, namely Global Business Services, Cloud and Cognitive Software, Global Financing, Global Technology Services, and Systems. The company specializes in offering diverse services, such as business transformation consulting, technology consulting, and customized application development, to meet the unique requirements of its clients. IBM also provides cloud services, business process outsourcing, and infrastructure support. These services can be delivered fully or partially through cloud-based or as-a-service models.
Tata Consultancy Services Limited - Tata Consultancy Services is a company that specializes in offering consulting, IT services, and business solutions. The company operates in various business segments, including Banking, Financial Services and Insurance, Manufacturing, Retail and Consumer Business, Communication, Media and Technology, Life Sciences and Healthcare, and others, encompassing Resources and Utilities, Energy, e-government, and Products. Additionally, TCS provides various services, such as cognitive business operations, consulting, data and analytics, enterprise solutions, IoT and digital engineering, and sustainability. One of the company's offerings is TCS TAP, a digital procurement solution that aids in the modernization of outdated procurement processes.
Wipro Ltd. - Wipro Limited is a worldwide information technology, consulting, and business process services supplier. The organization is divided into three business segments: IT products, IT services, and India state-run enterprise services. Within the IT Services segment, Wipro offers a diverse array of IT-enabled services to businesses worldwide. These services include business process services, customer-centric design, digital strategy advisory, custom application development, consulting, process design and development, package implementation, re-engineering and maintenance, systems integration, analytics services, global infrastructure services, research and development, and hardware and software design.
WNS (Holdings) Ltd. - WNS (Holdings) Ltd. is a renowned business process management firm that provides various solutions across various industries. These solutions include customer experience services, finance and accounting (including procurement), research and analytics, consulting and transformation, technology and automation, human resources, governance, risk, and compliance services. The company's primary focus lies in sectors such as healthcare, insurance, travel and leisure, shipping and logistics, diversified businesses (including manufacturing, retail and consumer packaged goods, media and entertainment, and telecommunication), hi-tech and professional services (including consulting and professional services), banking and financial services, and utilities.
Supply Side Estimates
Company revenue estimation via referring to annual reports, investor presentations, and Hoover’s.
Segment revenue determination via variable analysis and penetration modeling.
Competitive benchmarking to identify market leaders and their collective revenue shares.
Forecasting via analyzing commercialization rates, pipelines, market initiatives, distribution networks, etc.
Demand side estimates
Identifying parent markets and ancillary markets
Segment penetration analysis to obtain pertinent
Heuristic forecasting with the help of subject matter experts
Forecasting via variable analysis
Understanding market dynamics (in terms of drivers, restraints, & opportunities) in the countries.
Understanding trends & variables in the individual countries & their impact on growth and using analytical tools to provide high-level insights into the market dynamics and the associated growth pattern.
Understanding market estimates and forecasts (with the base year as 2022, historic information from 2018 to 2021, and forecast from 2023 to 2030). Regional estimates & forecasts for each category are available and are summed up to form the global market estimates.
The report provides market value for the base year 2022 and a yearly forecast till 2030 in terms of revenue/volume or both. The market for each of the segment outlooks has been provided on region & country basis for the above-mentioned forecast period.
The key industry dynamics, major technological trends, and application markets are evaluated to understand their impact on the demand for the forecast period. The growth rates were estimated using correlation, regression, and time-series analysis.
We have used the bottom-up approach for market sizing, analyzing key regional markets, dynamics, & trends for various products and end-users. The total market has been estimated by integrating the country markets.
All market estimates and forecasts have been validated through primary interviews with the key industry participants.
Inflation has not been accounted for to estimate and forecast the market.
Numbers may not add up due to rounding off.
Europe consists of EU-8, Central & Eastern Europe, along with the Commonwealth of Independent States (CIS).
Asia Pacific includes South Asia, East Asia, Southeast Asia, and Oceania (Australia & New Zealand).
Latin America includes Central American countries and the South American continent
Middle East includes Western Asia (as assigned by the UN Statistics Division) and the African continent.
GVR strives to procure the latest and unique information for reports directly from industry experts, which gives it a competitive edge. Quality is of utmost importance to us, therefore every year we focus on increasing our experts’ panel. Primary interviews are one of the critical steps in identifying recent market trends and scenarios. This process enables us to justify and validate our market estimates and forecasts to our clients. With more than 8,000 reports in our database, we have connected with some key opinion leaders across various domains, including healthcare, technology, consumer goods, and the chemical sector. Our process starts with identifying the right platform for a particular type of report, i.e., emails, LinkedIn, seminars, or telephonic conversation, as every report is unique and requires a differentiated approach.
We send out questionnaires to different experts from various regions/ countries, which is dependent on the following factors:
Report/Market scope: If the market study is global, we send questionnaires to industry experts across various regions, including North America, Europe, Asia Pacific, Latin America, and MEA.
Market Penetration: If the market is driven by technological advancements, population density, disease prevalence, or other factors, we identify experts and send out questionnaires based on region or country dominance.
The time to start receiving responses from industry experts varies based on how niche or well-penetrated the market is. Our reports include a detailed chapter on the KoL opinion section, which helps our clients understand the perspective of experts already in the market space.
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