£1.6bn
£XXX.Xm
21,229
1,941
£XXX.Xm
Downstream businesses outsource the procurement of assets to companies in the procurement outsourcing services industry, which helps businesses focus on their primary business activities, increasing efficiency and profit. The main markets for the industry are manufacturers, retailers and food processors. Government contracts are also a significant source of industry revenue. Over the five years through 2024-25, the procurement outsourcing service industry is expected to contract at a compound annual rate of 3.6% to £1.6 billion.
Industry revenue has declined at a CAGR of 3.6 % over the past five years, to reach an estimated £1.6bn in 2024.
Market size is projected to grow over the next five years.
Company | Market Share (%)
2025 | Revenue (£m)
2025 |
---|---|---|
IBM United Kingdom Ltd | 200.8 | |
Accenture (UK) Ltd | 180.9 | |
Capita plc | 163.1 |
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Procurement Outsourcing Services in the UK
Industry revenue is measured across several distinct product and services lines, including Direct procurement and Indirect procurement. Direct procurement is the largest segment of the Procurement Outsourcing Services in the UK.
The share of indirect procurement sees good growth
Businesses in this industry provide direct and indirect procurement services for their clients. Procurement is obtaining goods or services, typically for business purposes. Direct procurement relates to obtaining goods or services to maintain the company's primary activity. Indirect procurement includes everything else.
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SIC 74.1 - Procurement Outsourcing Services in the UK
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
IT adoption boosts procurement efficiencies. The uptake of IT and telecommunications among businesses has mitigated the effects of low business confidence, with the automatio...
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The pandemic spurred growth in indirect procurement services. Companies are increasingly outsourcing non-core activities due to greater efficiency and cost reduction needs, p...
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London draws in procurement service providers. The city attracts these companies with direct access to top-notch clients, governmental institutes, and head offices, along wit...
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
The industry is defined by high labour intensity. Parallel to its dependence on highly specialised and experienced talents, regular updates in IT equipment, software and syst...
Learn about the performance of the top companies in the industry.
IBM dominates due to unmatchable software expertise and global reach. The company's prowess in cutting-edge technologies like AI, cloud services, and cybersecurity, combined ...
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Public procurement thresholds now include VAT. The new 2022 regulations now state public contracts' value inclusive of VAT, effectively reducing the amount procurement firms ...
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Profit hinges on size and specialisation of procurement firms. These companies' earnings massively depend on the scale of their operations, with larger firms benefitting from...
Including values and annual change:
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Key data sources in the UK include:
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These sources include:
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The market size of the Procurement Outsourcing Services in the UK industry in United Kingdom is £1.6bn in 2024.
There are 1,941 businesses in the Procurement Outsourcing Services in the UK industry in United Kingdom, which has declined at a CAGR of 0.4 % between 2019 and 2024.
The market size of the Procurement Outsourcing Services in the UK industry in United Kingdom has been declining at a CAGR of 3.6 % between 2019 and 2024.
Over the next five years, the Procurement Outsourcing Services in the UK industry in United Kingdom is expected to grow.
The biggest companies operating in the Procurement Outsourcing Services market in United Kingdom are IBM United Kingdom Ltd, Accenture (UK) Ltd and Capita plc
Direct procurement and Indirect procurement are part of the Procurement Outsourcing Services in the UK industry.
The company holding the most market share in United Kingdom is IBM United Kingdom Ltd.
The level of competition is moderate and increasing in the Procurement Outsourcing Services in the UK industry in United Kingdom.