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| Global Shared Services Market Growth |
The shared services market is gaining momentum owing to advantages such as
improved operational efficiency, controlled costs, scalability, and
standardization of business processes. Shared services offer efficiencies in
functions such as finance, human resources, supply chain, and information
technology. The concept involves centralizing common organizational functions
across geographic and organizational boundaries while improving service levels,
lowering operational costs, and gaining tax efficiencies. Shared services
facilitates corporate units to focus on core businesses while leveraging
efficient operational support.
The global shared services market is estimated to be valued at US$ 187.18 million in 2024 and is
expected to exhibit a CAGR of 8.3% over
the forecast period from 2024 to 2030.
Key Takeaways
Key players: Dell Inc., Curtiss-Wright Corp., Getac Technology Corp., General
Dynamics Corp., Zebra Technologies Corp., L3 Technologies Inc., Panasonic
Corporation, Scio Teq, Sparton Corp., Crystal Group Inc., Kyocera Corp., and
Beijer Electronics Group AB are the prominent players in the shared services
market. These companies are focusing on new product launches and mergers &
acquisitions to expand their shared services portfolio and market reach. For
instance, in July 2022, General Dynamics acquired Alion Science and Technology
for $5.35 billion to expand its mission solutions portfolio.
Key opportunities: Increasing adoption of automation technologies such as
robotics process automation and artificial intelligence across organizations is
expected to create significant growth opportunities for players in the Global Shared Services Market Growth .
Growing demand for cloud-based shared services from small and medium
enterprises will offer lucrative business opportunities during the forecast
period.
Global expansion: Leading shared services providers are focusing on expanding
their global footprint through partnerships and joint ventures. For example, in
June 2022, Panasonic partnered with ABeam Consulting to expand shared services
solutions in South East Asian nations. Players are also eyeing emerging markets
in Asia Pacific and Latin America for global expansion.
Market drivers: Increasing focus on cost optimization through consolidation of
business processes is a key factor driving the adoption of shared services
solutions. Growing need to improve efficiencies without affecting front-end
operations is also propelling the market growth. Additionally, benefits such as
scalability, standardization, and technological innovations are fuelling the
demand for shared services.
Market restrain: Data privacy and security concerns associated with shared
infrastructure could hamper the adoption of shared services, especially among
regulated industries. Lack of skilled workforce and integration challenges with
legacy systems also act as a barrier to the market growth. High initial
investment requirements also pose a challenge, mainly for small and medium
enterprises.
Segment Analysis
The shared services market is dominated by the finance and accounting
sub-segment. This is because a majority of businesses look to outsource their
finance and accounting processes as these are more procedural and require
significant effort to manage internally. Shared services providers help
businesses consolidate accounting functions across regions which helps lower
costs and improve compliance. The human resources sub-segment is also growing
strongly as companies look to automate HR operations like payroll, benefits
administration and recruitment through centralized shared services centers.
Global Analysis
North America is expected to remain the largest as well as the fastest growing
regional market for shared services during the forecast period. The presence of
major shared services providers along with early adoption of advanced
technologies across industries is supporting the growth of the market in the
region. Asia Pacific is anticipated to showcase significant growth
opportunities owing to rapid digital transformation of enterprises and the need
to optimize costs. Countries like China, India and Japan are increasingly
adopting shared services solutions to streamline business functions on a
regional or global scale.
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