Services Procurement Market Report 2026

The services procurement market size has grown strongly in recent years. It will grow from $2.61 billion in 2025 to $2.85 billion in 2026 at a compound annual growth rate (CAGR) of 9.2%. The growth in the historic period can be attributed to increasing outsourcing of business services, rising complexity of vendor ecosystems, expansion of global service supply chains, growing focus on cost transparency, adoption of digital procurement workflows.

The services procurement market size is expected to see strong growth in the next few years. It will grow to $3.91 billion in 2030 at a compound annual growth rate (CAGR) of 8.2%. The growth in the forecast period can be attributed to increasing investments in ai-driven sourcing tools, rising demand for real-time spend visibility, expansion of cloud procurement adoption among smes, growing focus on sustainability-linked procurement, increasing regulatory scrutiny of supplier practices. Major trends in the forecast period include increasing adoption of automated procurement platforms, rising use of spend analytics tools, growing integration of supplier risk management systems, expansion of cloud-based procurement solutions, enhanced focus on contract compliance.

The increasing adoption of digitization is anticipated to propel the growth of the services procurement market. Digitization, utilizing digital technologies to revamp traditional business operations and communication channels, is gaining traction due to its potential for complete IT transformation, which enhances efficiency, scalability, and cost reduction. Digitization plays a pivotal role in automating and streamlining various procurement processes, from supplier identification to contract management. For example, research by the International Monetary Fund in March 2023 indicated a 6% average rise in digitalization across advanced economies. Additionally, the Government of Canada reported in the same period that global spending on digital education surged from 2.5% to 4.3% of global education expenditures, indicating significant investment growth by 2025. Consequently, the growing adoption of digitization is fostering the expansion of the services procurement market.

Major companies in the services procurement market are focusing on developing innovative solutions, such as AI-enabled vendor management systems (VMS) for external and intellectual services, to address the growing demand for improved spend visibility, faster sourcing cycles, stronger risk and compliance control, and more efficient management of complex statement-of-work engagements. These next-generation VMS platforms go beyond traditional manual tools and generic procure-to-pay suites by digitizing the full services lifecycle - from supplier sourcing and RFPs to contracting, delivery tracking, and invoicing - while embedding analytics and automation that were previously managed via spreadsheets, emails, and fragmented point solutions. For example, in June 2025, Little Big Connection SAS, a France-based digital services procurement and external talent marketplace company, launched Eleven VMS, an innovative VMS platform dedicated to managing external intellectual services. Eleven VMS is a modular, cloud-based solution that centralizes and simplifies services procurement, offering multi-level spend visibility, real-time performance tracking, and comprehensive budget control for procurement teams. It integrates artificial intelligence across the source-to-pay cycle with features such as an AI RFP Writer for drafting sourcing events, AI Score for evaluating and ranking supplier responses, CompIAPI to streamline supplier onboarding in a few clicks, and automatic data extraction from documents like purchase orders and contracts. Configurable to each organization’s governance and workflows, Eleven VMS supports global rollouts for large enterprises, improving compliance, reducing rogue spending, and enabling procurement leaders to focus on strategic decision-making rather than transactional tasks.

In June 2025, Beeline, a US-based technology company, acquired MBO Partners for an undisclosed sum. Through this acquisition, Beeline aims to expand its extended workforce platform to fully integrate independent talent by combining its vendor management system with MBO Partners’ capabilities in independent contractor engagement, compliance, and AOR-to-EOR services. This creates a unified, end-to-end solution for enterprises to manage all categories of external workers. MBO Partners Inc., based in the US, provides services for managing, engaging, and optimizing independent professionals and contingent workers.

Major companies operating in the services procurement market are Amazon.com Inc., Accenture plc, International Business Machines Corporation, Cisco Systems Inc., Oracle Corporation, SAP Fieldglass, Tata Consultancy Services Limited, Capgemini SE, Infosys Limited, HCL Technologies Limited, Wipro Limited, Palo Alto Networks Inc., Juniper Networks Inc., Bain & Company Inc., Genpact Limited, GEP Solutions Pvt. Ltd., WNS (Holdings) Limited, Coupa Software Incorporated, Upwork Global Inc., PRO Unlimited Inc., Zycus Inc., Field Nation LLC, JAGGAER Inc., WorkMarket Inc., Beeline B.V.

Europe was the largest region in the services procurement market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the services procurement market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the services procurement market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The services procurement market includes revenues earned by entities by providing services such as vendor management, sourcing and supplier selection, contract management, procurement process optimization, compliance and risk management, performance monitoring and evaluation. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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