by Shared services are centralized functions which are designed, implemented and managed once for use by multiple operating units within an organization. Shared services help in enhancing productivity, lowering costs and standardizing practices by consolidating common business functions to a centralized unit. The global shared services market encompasses various services including HR, finance & accounting, customer relationship management, information technology infrastructure and others. These services aid in optimizing business operations and freeing up resources to focus on core competencies.
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 14% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Growing preference for outsourcing non-core business functions is fueling the growth of shared services market. Shared services help companies to focus on core competencies by outsourcing non-essential operational tasks such as HR, finance, IT infrastructure management and customer support functions. This allows enterprises to reduce operational costs and improve productivity. Moreover, shared services offer standardized and centralized processes, thereby improving quality, compliance and delivering services uniformly across different business units and geographies. Advanced technologies such as cloud, artificial intelligence and robotic process automation are enabling shared services providers to offer more automated, cost-effective and scalable solutions. Ongoing digital transformation across industries is further augmenting the demand for automated shared services functions.
SWOT Analysis
Strength: The shared services market has an opportunity to drive efficiency and optimize costs across business functions through economies of scale. It allows organizations to focus on their core competencies.
Weakness: Transitioning to a shared services model can be challenging for organizations due to changes in processes and cultures. Data security and privacy also remain key concerns for companies operating in this model.
Opportunity: The COVID-19 pandemic has accelerated the digital transformation of business processes and increased the demand for automated and streamlined shared services. There is potential to automate more transactional activities through technologies like robotics process automation (RPA) and artificial intelligence (AI).
Threats: Dependence on third-party service providers for business-critical functions increases outsourcing risks. Rising labor and infrastructure costs pose threats to the profit margins of shared services providers.
Key Takeaways
The Global Shared Services Market Analysis is expected to witness high growth over the forecast period supported by increasing demand to optimize costs and drive efficiency across business functions. 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 14% over the forecast period 2023 to 2030.
North America currently dominates the market owing to early adoption of shared services models among large enterprises in the region. However, Asia Pacific is expected to offer high growth opportunities over the next decade supported by countries like India, Philippines and China emerging as preferred destinations for offshore shared services centers due to availability of low-cost skilled talent pool.
Key players: Key players operating in the shared services market are INOVIQ, Bio-Rad Laboratories, Inc., Abbott, Becton, Dickinson and Company, Merck KgaA, QIAGEN, Thermo Fisher Scientific Inc., CENTOGENE N.V., PerkinElmer Inc., and Siemens Healthcare Private Limited. These players are focusing on expanding their shared services offerings through strategic partnerships and acquisitions.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
