Procurement as a Service offers numerous benefits, the market also faces several challenges that organizations must address to fully leverage PaaS solutions. One of the major challenges is data security and confidentiality concerns, as procurement operations involve sensitive supplier and financial data. Organizations may hesitate to outsource procurement activities due to concerns about data breaches and loss of control over procurement processes. Additionally, integration complexities with existing enterprise resource planning systems and procurement platforms can create implementation challenges. Resistance to organizational change and lack of awareness about the benefits of PaaS solutions also hinder market growth. However, the market presents significant growth opportunities driven by increasing digital transformation initiatives, adoption of advanced procurement technologies, and growing demand for strategic procurement solutions. Service providers are investing in cybersecurity measures, customizable procurement solutions, and advanced analytics platforms to address these challenges and expand market adoption.