Shared Services Market Is Driven By Growing
Demand For Improved Operational Efficiency

The shared services market
enables organizations to achieve operational efficiencies through centralized
and standardized processes, reducing redundant work. Key shared services
functions include finance and accounting, human resources, procurement,
information technology infrastructure, and customer relationship management.
Outsourcing such non-core functions to specialized shared service centers
allows core business teams to focus on growth and innovation. Shared services
arrangements simplify processes, enhance control and compliance, and optimize
costs through 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 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 growing demand for specialized managed services from industrial and
commercial customers is a major driver for key players in the market. Several
players are focusing on global expansion through strategic partnerships and
acquisitions to leverage expertise across different regions.



The growing demand for cost optimization and improved productivity across
industries has significantly boosted the adoption of shared services solutions
in recent years. Centralizing finance, HR, procurement and IT functions into
shared services centers helps organizations reduce costs by 15-25%. Many small and
medium businesses are also leveraging managed shared services to access
world-class capabilities without large upfront investments.



The global shared services market is expected to witness strong growth over the
forecast period driven by expanding global operations of multinational
corporations. As companies establish offices and production facilities across
countries, they are increasingly adopting standardized shared service models to
maintain consistent processes worldwide. Standardization allows enterprises to
leverage best practices globally and focus on their core markets. The growing
cultural acceptance of outsourcing non-core activities to specialized shared
services providers is expected to further accelerate market expansion until
2030.



Market drivers



One of the key drivers for the  Shared
Services Market Share is the growing need for standardized processes
and controls in geographically distributed organizations. As companies expand
globally, it becomes difficult to ensure compliance and maintain oversight of
localized financial and operational processes. Consolidating such activities
into robust and auditable shared services centers helps manage risks better.
This is encouraging more multinationals to partner with experienced shared
services providers for standardized processes delivered with scale.



Impact of geopolitical situation on Shared Services Market growth

The shared services market is witnessing changes in growth trends due to the
volatile global geopolitical environment. The ongoing Russia-Ukraine conflict
and rising tensions between major nations have disrupted supply chains
significantly. There have been issues in semiconductor chip procurement which
is affecting manufacturing across industries that use shared services
infrastructure for technology and IT needs. Rising fuel costs and inflation
also pose economic challenges for businesses to maintain operations and invest
in new projects. Shared service centers located in conflict areas or
neighboring regions witness delays in expansion plans. However, companies are
finding ways to diversify risks by establishing collaborative offshore centers
or adopting hybrid work models for business continuity. The market will see new
opportunities with growing demand for technology solutions that enable
distributed operations and cater to workforce flexibility needs in different
geographies. Vendors will need innovative service delivery mechanisms, regional
connectivity systems and cybersecurity protocols to ensure uninterrupted
services globally.



Geographical regions where Shared Services Market value is concentrated

North America currently accounts for the largest share of the global shared
services market in terms of value. Major industries based in the US and Canada
have established large shared services operations to support their extensive
operations and subsidiaries spread worldwide. These centers are hubs for
expertise in functions like finance, IT infrastructure management, HR
administration, procurement and supply chain coordination for multinational
businesses. The high technology adoption rates and large outsourcing industry
additionally support market growth in the region. Asia Pacific is another major
regional market, especially countries like India, Philippines and China that
are popular BPO/SSC destinations. Vendors are expanding or setting up new
facilities to tap business opportunities from multinationals and local
enterprises rapidly expanding operations across sectors in the developing Asian
economies.



Fastest growing region in Shared Services Market

The shared services market in Eastern Europe is witnessing the fastest value
growth globally. Countries like Poland, Russia, Czech Republic, Hungary and
Romania offer competitive talent availability and business incentives for
outsourcing and technology firms to establish new shared services centers.
Vendors are attracted to relatively lower costs of operations and skills in
areas such as software engineering, accounting and analytics in this region.
The governments also provide infrastructure and tax benefits to boost
investments. Major organizations are expanding their regional hubs or forming
partnerships with local firms to set up delivery centers. This is enabling them
to efficiently support the business growth in Western/Eastern European markets
and gain strategic advantages with shared resources located closer to these
territories. The region presents lucrative prospects and is emerging as a key
market for future shared services expansion.

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Services Market