 |
| Cost Reduction Services Market |
The global Cost Reduction Services Market is estimated to be valued at US$ 101.87 billion in 2023 and is
expected to exhibit a CAGR of 10.1%
over the forecast period 2023-2030, as highlighted in a new report published by
Coherent Market Insights.
Market Overview:
Cost reduction services help organizations improve operational efficiency and
reduce wasteful costs in their business operations through process
optimization, change management, and cost rationalization. These services
analyze the client's expenditure trends across procurement, supply chain
operations, workforce management, overhead costs and more to identify areas of
redundancy and implement cost-savings initiatives. With globalization and
fierce competition, organizations increasingly rely on third-party consulting
service providers to drive performance improvement through strategic cost
optimization.
Market key trends:
One of the key trends driving the growth of Cost Reduction Services Market is
the increasing outsourcing of non-core operations by companies. As businesses
focus more on their core competencies, there has been a rise in outsourcing
support functions like finance & accounting, human resources, and
facilities management to specialized third-party service providers. These
consultancies leverage expertise, scale advantages and technological
capabilities to enhance efficiencies and effectiveness of business services at
lower costs. Their data-driven approach involving activity-based costing, spend
analytics and benchmarking helps organizations rationalize expenditure and free
up resources.
Porter’s Analysis
Threat of new entrants: The Cost
Reduction Services Market has medium threat of new entrants due to the
presence of few well-established players and moderate capital requirements.
However, new entrants need to spend significantly to gain customer trust.
Bargaining power of buyers: The bargaining power of buyers is high due to the
availability of substitutes and price sensitivity of buyers. Buyers can
negotiate on price and switch between service providers based on better offers.
Bargaining power of suppliers: As there are number of service providers, the
bargaining power of suppliers is low. Suppliers heavily rely on a few big
players for majority of their revenue.
Threat of new substitutes: The threat from substitutes is medium as
digitization is enabling various cost reduction options like robotic process
automation. However, personalized consulting services have fewer substitutes.
Competitive rivalry: The competitive rivalry in the industry is high due to
presence of large number of global and regional players offering similar
services. Players compete based on service quality, expertise, and price.
Key Takeaways
The global Cost Reduction Services market is expected to witness high growth,
exhibiting CAGR of 10.1% over the
forecast period 2023-2030, due to increasing need for operational optimization
and cost control among corporates.
North America is expected to dominate the Cost Reduction Services market during
the forecast period. This is attributed to presence of majority of key players
and early adoption of consulting services in the region. Growing cost pressures
on companies will further drive adoption of cost reduction solutions in the
region.
Key players operating in the Cost Reduction Services market are Accenture,
Deloitte Consulting LLP, PricewaterhouseCoopers (PwC), Ernst & Young (EY),
KPMG, McKinsey & Company, Bain & Company, Boston Consulting Group
(BCG), T. Kearney, Oliver Wyman, Alvarez & Marsal, GEP, Protiviti, Ayming,
Expense Reduction Analysts. Major players focus on acquisitions and
partnerships to expand their service capabilities and geographical reach.
Read
More: https://www.trendingwebwire.com/cost-reduction-services-market-analysis/