Shared services provide significant benefits such as increased operational efficiency, cost optimization, and scalability. The growing need amongst organizations to focus on core competencies and outsource support activities is driving the demand for shared services solutions. Additionally, need to streamline business operations and gain competitive advantage is also augmenting the shared services market growth.
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:
Consolidation and acquisitions have emerged as a key trend in the shared services market. Major players are engaging in mergers and acquisitions to expand their expertise and capabilities. For instance, in 2020, Zebra Technologies Corporation acquired Reflexis Systems, a provider of intelligent workforce management, execution and sourcing solutions for retailers and distributors globally. This acquisition helped Zebra expand its retail and supply chain execution solutions portfolio. Similarly, in 2022, General Dynamics completed the acquisition of EverWatch Corporation to enhance its cybersecurity capabilities and managed security service offerings for government customers. Such strategic initiatives are helping key players expand their shared services capabilities and global footprint.
The global shared services market is dominated by the IT outsourcing sub-segment. IT outsourcing constitutes around 35% of the overall shared services market owing to organizations increasingly outsourcing their non-core IT functions such as networking, server management, data management, infrastructure management etc. to shared service providers. This helps organizations focus more on their core business competencies while leveraging the expertise of shared service providers to handle IT functions in a more scalable and cost-effective manner.
The Global Shared Services Market Size is expected to witness high growth during the forecast period of 2023 to 2030 growing at a CAGR of 8.3%. The market is estimated to reach a size of US$ 162.48 Mn in 2024.
North America currently dominates the global shared services market and is expected to continue its dominance during the forecast period as well. The presence of large enterprises and willingness to adopt shared services models to streamline operations is driving market growth in the region. The Asia Pacific region is expected to grow at the fastest pace during the forecast period owing to growing economies, increasing digitalization, and rising adoption of shared services by organizations to optimize costs.
Key players operating in the Shared Services market are Dell Inc., Curtiss-Wright Corp., Getac Technology Corp., General Dynamics Corp., Zebra Technologies Corp. These companies have robust financial resources that help them invest in R&D and emerging technologies to develop innovative solutions and stay ahead of competition. Dell Inc. and General Dynamics Corp. have a stronghold in the IT outsourcing market owing to their capabilities across various IT functions.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it