Disrupted demand: Reduced business capital spending contributed to a slowdown in growth

The industry’s growth over the past five years was primarily due to businesses outsourcing procurement activities in order to improve cost efficiencies. Demand from public-sector organisations also increased due to pressure 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 boosted business capacity levels, which increased the need for industry services. However, weak manufacturing activity and the closure of many retail stores constrained growth, as they make up a key market for the industry. Furthermore, the decision to leave the European Union is expected to have a negative effect on demand...read more.

Industry Statistics & Market Size
Revenue
£1.5bn
Annual Growth 13-18
1.7%
Forecast Growth 18-23
Profit
Employment
20,198
Businesses
1,900

Industry Threats & Opportunities

  • The weak pound increases operating costs for clients, supporting industry demand
  • The need for procurement outsourcing rises when public-sector organisations increase their spending
  • Public-sector entities are expected to outsource more work over the next five years
  • Industry Report - Industry Investment Chapter

    The level of capital intensity is determined by comparing the human and capital equipment factors of production using wages and depreciation as proxies. Comparatively high depreciation costs indicate substantial investment in depreciable assets, such as buildings and equipment, resulting in high capital intensity. Conversely, comparatively high wage costs indicate high labour intensity.The industry exhibits a low level of capital intensity. In 2017-18, the capital-to-labour ratio is expected to be 1:26.65, which indicates that for every £1.00 spent on capital, operators will spend £26.65 on labour. The level of capital intensity is low because the industry is highly reliant on skilled employees with very particular knowledge, rather than machines. The...purchase to read more.

    Additional Insights for the Procurement Outsourcing Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Procurement Outsourcing Services Industry are

  • Undertaking technical research and development
  • Highly trained workforce
  • Ability to effectively communicate and negotiate
  • IBISWorld analysts also discuss how external factors such as Business capital expenditure and Number of businesses in the Procurement Outsourcing Services industry impact industry performance..

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    What's in this report

    What is the Procurement Outsourcing Services Industry?

    Businesses in this industry provide direct and indirect procurement services for their clients. Procurement outsourcing allows client companies to reduce their costs and become more efficient.

    Industry Products
  • Direct procurement
  • Indirect procurement
  • Industry Activities
  • Direct procurement
  • Indirect procurement
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Business capital expenditure
  • Number of businesses
  • Business confidence index
  • Government capital expenditure
  • IT and telecommunications adoption

  • Current Performance
  • Procuring profit
  • Spending to save
  • Growth limitations
  • Margins improve
  • Chart: Revenue Growth

  • Industry Outlook
  • Public-sector procurement
  • Uncertainty with the Union
  • Spending and saving
  • Different markets
  • Profitability expands
  • Table: Procurement Outsourcing Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Procurement Outsourcing Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Manufacturing
  • Meat Processing
  • Wholesale and Retail Trade
  • Hospitals

  • Key Selling Industries
  • Computer & Gaming Product Retailers
  • Mobile Telephone Retailers
  • Office Furniture Wholesaling

  • Products & Services
  • Indirect procurement
  • Direct procurement
  • Chart: Procurement Outsourcing Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Manufacturers
  • Retailers
  • Other
  • Food processors
  • Government
  • Chart: Major Market Segmentation for the Procurement Outsourcing Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesDepreciationOther
  • Chart: Cost Structure Benchmarking – Sector vs Procurement Outsourcing Services

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Procurement Outsourcing Services Industry

  • Industry Globalization
    Capita plc, IBM United Kingdom Ltd, Accenture (UK) Ltd,
  • Table: Capita plc - financial performance
  • Table: IBM United Kingdom Ltd - financial performance
  • Table: Accenture (UK) Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Procurement Outsourcing Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Procurement Outsourcing Services Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Fleet Management
  • The management of a company's transportation fleet, which could include cars, vans, ships and aircraft.
  • Outsourcing
  • The contracting out of a business process to an independent third party.
  • Procurement
  • The acquisition of goods and services. Procurement can be described as either direct or indirect.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Procurement Outsourcing Services market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Procurement Outsourcing Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Procurement Outsourcing Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Procurement Outsourcing Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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