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Vendor Risk Management Market Global Forecast Over 2018 - 2026

Vendor Risk Management Market  

Vendor risk management is a system that facilitates the planning and management of outsourced products and services. The system is designed to support enterprises in monitoring and managing the risk exposure resulting from third-party service providers. Additionally, vendor risk management system offers a dynamic data storage for vendor assessments comprising compliance checklists, risk evaluations, and other tools and technologies to estimate vendor performance related to organization’s objectives. 
Various enterprises are replacing their paper-based systems and point solutions with vendor risk management systems in order to improve real-time visibility into vendor risks and controls as well as to automate and streamline the vendor management lifecycle. Procedures in the vendor management lifecycle include vendor on-boarding, vendor qualification, vendor name change, annual re-qualification processes, and contract management.
In this tough economic environment, high-tech and automated facilities are gaining momentum over traditional operations. Traditional Word systems and spreadsheets make it difficult to keep track of all vendors and their data. Currently, enterprises are experiencing intense competition owing to the development of new technologies that improve productivity. Moreover, in order to maximize revenue and deliver quality service, enterprises are reducing operating costs by partnering third-party suppliers who are engaged in the management of complex business processes.
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The global vendor risk management market is driven by rise in adoption of vendor risk management solutions to efficiently manage multifaceted vendor ecosystems. Additionally, increase in development and acceptance of new and advanced solutions among enterprises in order to decrease the risk associated with managing several vendors and enhance production is driving demand for vendor risk management solutions across the world. Moreover, demand for vendor risk management systems is rising in the highly regulated end-use industries including life sciences & health care, and banking, financial services, & insurance (BFSI). 
These companies rely on different vendors to efficiently perform and manage their critical operations. This also contributes to the growth of the global vendor risk management market. However, reluctance among organizations to invest in new and advanced technologies is one of the major factors hampering the growth of the global market. This is primarily because organizations are still dependent on manual and non-formal process to evaluate their vendor risks.
Increase in demand for cloud-based vendor risk management solutions among small and medium enterprises is anticipated to augment the market in the next few years. This is because small and medium enterprises generally prefer cloud-based solutions to on-premise solutions due to budget constraint. This trend is anticipated to grow during the forecast period.
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The global vendor risk management market can be segmented based on component, deployment type, enterprise size, industry, and region. In terms of component, the global market can be bifurcated into solutions and services. Based on deployment type, the vendor risk management market can be categorized into on-premise and cloud-based. In terms of enterprise size, the global market can be segregated into small & medium enterprises and large enterprises. Based on industry, the global vendor risk management market can be classified into life sciences & healthcare, BFSI, manufacturing, IT & telecom, retail & consumer goods, government, energy & utilities, and others.
In terms of region, the global vendor risk management market can be segmented into Europe, North America, Middle East & Africa, South America, and Asia Pacific. The vendor risk management market in North America is estimated to expand at a substantial growth rate during the forecast period. Increase in investment in new and advanced technologies such as cloud platforms, analytics & big data is accelerating the growth of the market in the region. However, Asia Pacific is anticipated to present significant opportunities in the vendor risk management market in the near future. This is primarily due to rise in adoption of emerging technologies among organizations in the region.
Major players operating in the global vendor risk management market include LexisNexis Group, Inc., BWise B.V., LogicManager, Inc., MetricStream, Inc., Relational Security Corporation (Rsam), IBM Corporation, LockPath, Inc., and Genpact Limited.
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