Shared services are centralized business functions that provide common services to various operating units within an organization. Shared services encompass a wide range of operational and administrative functions including finance and accounting, human resources, information technology infrastructure and applications. The adoption of shared services platforms provides various advantages such as reduced operational costs, improved productivity, enhanced process standardization and scalability. The global shared services market is gaining momentum due to growing need of business organizations to centralize support functions for better efficiency and cost optimization.
The global Shared Services Market is estimated to be valued at US$ 162.48 Mn in 2023 and is expected to exhibit a CAGR of 8.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The trend of increased adoption of cloud-based shared services platforms is primarily driving the market growth. Traditional on-premise shared service models require huge upfront investments and have limited scalability. However, cloud-based platforms provide functionalities of shared services through Software-as-a-Service model which eliminates requirement of physical infrastructure. The cloud delivery mechanism offers benefits such as low startup costs, easy deployment, enhanced scalability, simplicity in collaboration and accessibility from any location. Various shared services functions such as finance and accounting, HR, customer support and IT infrastructure are increasingly being offered through cloud-based platforms. This has boosted the adoption of cloud-based shared services solutions, especially among small and medium enterprises. The growing popularity of these cost-effective platforms is expected to continue propelling the shared services market during the forecast period.
SWOT Analysis
Strength: Shared services allow organizations to leverage scale and specialization. Resources can be pooled to provide services more efficiently at a lower cost.
Weakness: There is a loss of control over certain business functions which can reduce responsiveness. Standardization also limits flexibility to adapt services for unique business unit needs.
Opportunity: Expanding scope of services offered as a centralized shared center. Growth of outsourcing to third-party shared services providers.
Threats: Disruptions in shared services operations can impact multiple business units simultaneously. Dependency on a single provider can be a risk.
Key Takeaways
The Global Shared Services Market Size is expected to witness high growth over the forecast period of 2023 to 2030. The market size is projected to reach USD 162.48 Mn in 2024, registering a CAGR of 8.3% during the forecast period.
Regional analysis comprises North America dominates the shared services market currently, primarily due to early adoption of shared services models. The region is expected to continue its dominance over the forecast period as well supported by continuous investments in digital transformations initiatives across industries in the region. Asia Pacific is expected to be the fastest growing region owing to growing adoption of outsourcing models and standardized business processes across organizations in the developing economies of the region such as China, India.
Key players operating in the shared services market are 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. Dell Inc. provides a wide portfolio of optimized devices, deployment, and management solutions for shared services workforce. Getac offers fully rugged tablets suitable for use in shared services field operations.
For more Insights, Read –
Check more trending articles related to this topic:
Arabic
French
Spanish
Portuguese
Deutsch
Turkish
Dutch
Italiano
Russian
Romaian
Portuguese (Brazil)
Greek