Impact of the UK Procurement Act on Market Growth in 2025 | SME-Focused Outsourcing Services Are Transforming Public Procurement

Government Initiatives in Procurement Outsourcing Services | Impact on Market Growth and Investment Opportunities

In 2025, governments worldwide are focusing on optimizing procurement practices to drive economic growth, enhance efficiency, and promote social change.

One of the most significant initiatives is the UK government's efforts to prioritize small and medium-sized enterprises (SMEs) in public sector procurement processes.

This approach aims to support innovation, local businesses, and job creation, all while ensuring that public procurement is more inclusive, efficient, and sustainable.

You can get the Exclusive Data & Insights with the Free Sample Copy of the Procurement Outsourcing Services Market Research Report: https://www.marketdigits.com/request/sample/28

UK Government's Procurement Reforms | The Procurement Act 2023

The UK government has introduced the Procurement Act 2023, a groundbreaking piece of legislation designed to overhaul public procurement processes.

The act, which received royal assent on October 26, 2023, and is expected to take effect in February 2025, aims to simplify procurement procedures and make it easier for SMEs and voluntary, community, and social enterprises (VCSEs) to access public sector contracts.

Key Features of the Procurement Act 2023:

Simplification of Procurement Processes: The act cuts down on the bureaucratic red tape that traditionally burdened smaller businesses. Streamlining these processes, it makes it easier for SMEs to participate in public procurement, thereby fostering greater competition and driving innovation.

Central Digital Platform: A new Central Digital Platform will be implemented, requiring suppliers to register in order to bid for public procurement contracts.

This initiative not only makes the process more transparent but also opens the doors for a wider range of businesses to engage in government contracts.

Focus on Social Value: The act emphasizes the inclusion of social value in procurement decisions.

Public agencies are encouraged to consider the broader social impact of contracts, which could include factors like environmental sustainability and the creation of local jobs.

Procurement Spend Targets for SMEs: A significant aspect of the reforms is the setting of procurement spend targets for SMEs.

By May 31, 2025, government departments must set a three-year target for direct spend with SMEs, covering the period from April 1, 2025, to March 31, 2028.

Departments must also publish their progress against these targets annually by September 30 each year.

The Economic Impact and Market Growth

These policy changes are expected to have a substantial impact on the Procurement Outsourcing Services Market in the coming years. The push to prioritize SMEs and the introduction of simplified procurement processes will create a more competitive market, opening up new opportunities for procurement outsourcing firms.

The SMEs gain more access to public contracts, there will likely be an increase in demand for procurement outsourcing services to help these businesses navigate complex procurement procedures, manage supplier relationships, and optimize their operations.

According to recent data from MarketDigits, the global procurement outsourcing services market is projected to reach USD 10.7 billion by 2032, growing at a CAGR of 14.70%.

The introduction of the Procurement Act 2023 and similar initiatives in other countries is expected to further fuel this growth, as procurement outsourcing services will be essential for businesses looking to scale and navigate the increasingly complex procurement landscape.

View the complete 180 Pages Market Research Report on Procurement Outsourcing Services: https://www.marketdigits.com/procurement-outsourcing-services-market

Scope and Investment Opportunities

The growing emphasis on SME participation in public procurement offers vast investment opportunities within the procurement outsourcing sector.

Companies providing end-to-end procurement services, such as strategic sourcing, supplier management, contract management, and spend analysis, will see increased demand as SMEs look for support to access government contracts.

Additionally, the increased focus on social value and sustainability in procurement decisions opens up opportunities for outsourcing firms that specialize in ethical sourcing, green procurement, and supply chain transparency.

These services will be in high demand as businesses strive to align with government expectations regarding social and environmental impacts.

Moreover, the integration of artificial intelligence (AI), machine learning (ML), and data analytics into procurement processes is likely to become a key differentiator for outsourcing service providers.

The ability to offer AI-driven procurement solutions that enhance efficiency and reduce costs will create new market dynamics and attract further investments in the procurement outsourcing space.

Sources:

MarketDigits - Procurement Outsourcing Services Market Report (2025)

Government of the UK - Procurement Act 2023 (Oct 2023)

FT.com - Social Value in Public Procurement (Jan 2025)

Warrington Borough Council - Procurement Reform 2025 (2025)

About Us

Founded in 2015, MarketDigits Consulting & Advisory Pvt Ltd is a leading business research and consulting firm. Our mission is to empower clients by identifying emerging opportunities and driving revenue growth across industries. We specialize in providing comprehensive market insights, advanced technology solutions, and actionable strategies that support operational and strategic decision-making.

With a focus on the full value chain, our expert team delivers high-quality syndicate research reports, proprietary databases, and consulting services to help clients navigate today's competitive and dynamic business environment. At MarketDigits, we use advanced analysis to uncover profitable opportunities, enabling businesses to make smart decisions and achieve sustainable success.

Contact Us:

+1 510-730-3200 | +1 276-206-2055

sales@marketdigits.com

1248 CarMia Way Richmond

VA 23235, United States

This release was published on openPR.