Industry Analysis & Industry Trends
The industry has expanded over the past five years. This is primarily because businesses chose to outsource procurement sourcing activities in order to improve cost efficiencies. Demand from public-sector organisations also increased because of pressures on public spending. In addition, rising IT and telecommunications adoption made it easier to outsource activities to industry operators. Improvements in business capital spending also increased business capacity levels, which in turn increased the need for industry services. However, weak manufacturing activity and the closure of many retail stores constrained growth, as they a key market for the industry. Industry revenue is projected to grow at a compound annual rate of 4.1% over the five years through 2016-17 to £1.6 billion... purchase to read more
Industry Report - Industry Key Buyers Chapter
The Procurement Outsourcing Services industry exhibits a low level of market share concentration, since the four largest players are estimated to generate approximately 36.1% of industry revenue in 2016-17. The industry is characterised by a few large players and many small enterprises.
Market share concentration varies between product and market segments as many firms, especially smaller players, tend to target specific market segments. Fragmentation is expected to remain a feature of the industry over the next five years. However, market share concentration is projected to increase over the coming period as larger firms acquire smaller players.
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