The global Shared Services Market is estimated to be valued at US$ 162.48 Mn or in 2023 and is expected to exhibit a CAGR of 23.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Shared services are centralized service delivery models that are common in business support functions like finance, human resources (HR), IT, procurement, customer service, and supply chains. Shared services help optimize costs and standardize processes across an organization or related group of organizations.
Market key trends:
One of the key trends in the shared services market is the increased adoption of digital technologies. The COVID-19 pandemic has accelerated digital transformation initiatives and many shared service organizations are adopting technologies like robotic process automation, artificial intelligence, and cloud computing to streamline business processes. Digital technologies help improve accuracy, enhance productivity, optimize costs and provide a centralized platform to manage shared services remotely. This trend is expected to continue driving market growth over the forecast period.
SWOT Analysis
Strength: Shared services allow companies to leverage economies of scale and achieve cost savings in finance, HR and procurement functions. It allows better access to talent and expertise.
Weakness: Standardization of processes can reduce flexibility. Transitioning to a shared services model requires large upfront investments and coordination between business units.
Opportunity: Growing adoption of cloud-based shared services provides an opportunity to improve efficiency further. Demand from SMEs and startups also presents an opportunity.
Threats: Cybersecurity threats and data privacy issues pose challenges. Regulatory changes related to outsourcing of functions can impact business models.
Key Takeaways
The global Shared Services Market Share is expected to witness high, exhibiting CAGR of 23% over the forecast period, due to increasing demand for cost optimization and focus on core business activities. North America currently dominates the market due to presence of major Shared Services providers while Asia Pacific is expected to grow at a higher rate due to growing adoption among large enterprises.
Regional analysis
North America accounts for over 35% of the global market share due to strong presence of Shared Services vendors in the region. Asia Pacific is expected to grow at the fastest rate during the forecast period led by countries like India, China and Philippines. This can be attributed to growing adoption among large enterprises from industries such as retail, manufacturing and banking in the region to optimize costs. Countries in Asia offer lucrative talent pools and tax incentives to set up shared services centers.
Key players
Key players operating in the shared services market are Infosys Limited, SAP, HCL, EXL, Atos SE, Accenture, Genpact, IBM Corporation, Oracle Corporation, Cognizant, Capgemini SE, and Tata Consultancy Services Limited and Others. Major players are focusing on partnerships, mergers and acquisitions to enhance their shared services capabilities and gain new clients in growing markets.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
