Global Shared Services market was valued at US$ 41.37 Bn in 2023, and is projected to reach US$ 177.27 Bn by 2030, exhibiting a CAGR of 23.1% over the forecast period (2023-2030). According to Global Shared Services Market Report, By Component (Software, Services, Consulting, Integration, Maintenance), By End-use (Banking, Financial services and Insurance (BFSI), Media and Entertainment, Manufacturing, Healthcare, IT and Telecom, Retail & Hospitality and Others), By Deployment (Cloud and On Premise)and By Region (North America, Europe, Asia Pacific, Latin America, Middle East and Africa)”
Sharing resources and information amongst various business units within a corporation is referred to as providing shared services. In other terms, a shared service is a service that is provided by one area of an organization when that service is present in other areas of the company. Owing to the increasing emphasis on cost reduction by making optimum utilization of organizational resources, the demand for shared services is expected to grow. Utilizing shared services has advantages, including reducing redundancy by centralizing back-office functions used by several divisions of the same firm and making them cost-effective. The needs of many business units within the company are catered to through shared services, which are backed by IT and IT services. Furthermore, shared services' main goal is to allow each corporate division to concentrate its limited resources on tasks that.
Global Shared Services Market- Drivers
- Growing demand for end-to-end solutions to control business processes and obtain efficiency in operations: Organizations have recently altered the way they operated in the past. Traditional methods are being replaced with a corporate strategy that controls costs while maintaining quality and efficiency. The services that are visible via both upstream and downstream processes and have improved control over the business outcomes at any time are in high demand right now. This method of process control is made available through shared services. Therefore, over the course of the forecast period, the market's expansion is anticipated to be supported by the rising demand for end-to-end and improved regulated solutions. These advantages aid in the transformation of businesses into leaner, more flexible approach. For instance, in March 2022, Indian Oil Corporation, a state-owned multinational oil company in India, announced the adoption of shared services platform in integration with IBM, a global technology company to develop end-to-end business solutions that trace all the activities within an organization and provide holistic shared services solution.
Global Shared Services Market- Restraints
- Complexities involved in the implementation of shared services: The implementation of shared services is a complex process that requires a major change in the infrastructure and business process of the entire organization. Shared service providers store, process and process the organization's confidential and restricted personal data, complex data. In addition, implementing shared services across an organization is time-consuming. Therefore, many small and medium-sized companies are not ready to adopt shared services in their business. For instance,
Global Shared Services Market- Key Developments
On June 17, 2023, NASA (National Aeronautics and Space Administration), an independent agency of the U.S. federal government announced that COLSA, a U.S. based technological solutions provider would provide transformational shared services to the space organization.
On November, 2020, Daimler, a global commercial vehicle manufacturer, announced the opening of its global shared service center in Chennai, India. The new facility would integrate the services of different functional departments of the company like manufacturing, R&D, etc.
Global Shared Services Market- Impact of COVID-19
The COVID-19 pandemic resulted in the rapid technological advancements in the global shared services market. In order to assist struggling businesses, shared service providers adopted cost optimization techniques and provided specialized solutions across numerous industries. The pandemic's influence is likely to shape the future of the global shared services market as companies rethink their operational models, highlighting the significance of technology-driven solutions, scalable infrastructure, and flexible business processes.
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Key Trends and Analysis of the Global Shared Services market:
- BFSI segment held a dominant position in 2023 and is projected to retain its dominance throughout the forecast period. The wide scope of application of shared services in the BFSI industry would lead to a significant growth in demand for shared services in the industry and lead to the expansion of the segment.
- North America held a dominant position in the Global Shared Services market in 2023 and is expected to maintain its dominance during the forecast period, owing to the presence of huge multinational corporations.
- Asia Pacific Shared Services market is projected to exhibit the highest CAGR during 2023–2030. The organizations in the region are increasingly focused on adopting cost-effective techniques to fuel the expansion of the market.
- Europe is also expected to show significant growth during the forecast period, owing to the existence of mature industrial sector.
- Some of the major players in the Global 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.
