May 21, 2024
Shared Services Market

Shared Services Market Accelerates Growth Due To Adoption Of Unified Communications

The shared services market provides various benefits such as reduced operational costs, process standardization, and centralized management. Shared services enable organizations to efficiently manage common functions including human resources, information technology, finance and accounting. By consolidating these operations, companies can focus resources on core competencies while benefitting from expertise, consistent processes and economies of scale.

The global shared services market is estimated to be valued at US$ 187.18 Mn in 2024 and is expected to exhibit a CAGR of 8.3%  over the forecast period from 2024 to 2030.

Key Takeaways

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.

The key opportunities in the shared services market include increasing adoption across small and medium enterprises due to benefits such as low upfront costs and access to advanced technology. Also, growing demand for outsourcing of non-core operations from industries such as manufacturing, retail, healthcare, and BFSI is fueling market growth.

Adoption of unified communications technologies such as VoIP and collaboration tools is enabling optimized resource utilization in shared services. Cloud-based delivery models are also gaining traction as they offer scalability, flexibility and reduce infrastructure costs.

Market Drivers

The major driver for Shared Services Market Share is the need for centralized management of common functions to improve efficiency and reduce costs. Growing focus on core business processes is compelling companies to outsource non-critical operations to shared services providers. Advancements in areas such as artificial intelligence and analytics are further enhancing the capabilities of shared services platforms. Increased adoption of cloud and Software-as-a-Service models is also bolstering the demand.

Current challenges in the Shared Services Market:

The shared services market is facing challenges like increasing operational costs, integration of legacy systems with new platforms, data security, and privacy concerns. Shared services is an operational model that focuses on consolidated organizational and technological infrastructures which are designed to increase operational efficiency, reduce costs and improve efficiencies. However, integrating different business processes and platforms from multiple divisions under a shared services model increases the risk of operational challenges. The lack of adoption of advanced technologies also restricts the optimization of processes.

SWOT Analysis

Strength: Consolidation of processes leads to economies of scale and cost optimization. Standardization of processes helps in maintaining organizational compliance.
Weakness: Integration of legacy infrastructure is complex and expensive. Dependence on third parties increases security risks.
Opportunity: Adoption of automation technologies like AI, and analytics helps improve services. Growth in cloud adoption boosts shared services.
Threats: Disruption due to new and more efficient shared service offerings. Regulations around data privacy and security increase compliance requirements.

Geographical regions in terms of value

North America accounts for the largest share in the shared services market due to the presence of early adopters and technological advancements. Major shared services centers are located in the US and Canada to cater to organizations across industries.

Fastest growing region

The Asia Pacific region is expected to grow at the fastest pace during the forecast period. This is attributed to increasing global delivery centers by major IT firms in India and China. The growing IT outsourcing industry and digital transformation of enterprises in the region boost demand for shared services in Asia.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it