Shared Services Market Is Anticipated To Witness High Growth Owing To Increasing Cost Optimization Efforts Among Enterprises

https://www.coherentmarketinsights.com/market-insight/shared-services-market-3636
Shared Services Market 


The shared services market is gaining momentum owing to advantages such as improved operational efficiency, controlled costs, scalability, and standardization of business processes. Shared services offer efficiencies in functions such as finance, human resources, supply chain, and information technology. The concept involves centralizing common organizational functions across geographic and organizational boundaries while improving service levels, lowering operational costs, and gaining tax efficiencies. Shared services facilitates corporate units to focus on core businesses while leveraging efficient operational support.


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


Key Takeaways
Key players: 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 are the prominent players in the shared services market. These companies are focusing on new product launches and mergers & acquisitions to expand their shared services portfolio and market reach. For instance, in July 2022, General Dynamics acquired Alion Science and Technology for $5.35 billion to expand its mission solutions portfolio.

Key opportunities: Increasing adoption of automation technologies such as robotics process automation and artificial intelligence across organizations is expected to create significant growth opportunities for players in the Shared Services Market Share. Additionally, growing demand for cloud-based shared services from small and medium enterprises will offer lucrative business opportunities during the forecast period.

Global expansion: Leading shared services providers are focusing on expanding their global footprint through partnerships and joint ventures. For example, in June 2022, Panasonic partnered with ABeam Consulting to expand shared services solutions in South East Asian nations. Players are also eyeing emerging markets in Asia Pacific and Latin America for global expansion.

Market drivers: Increasing focus on cost optimization through consolidation of business processes is a key factor driving the adoption of shared services solutions. Growing need to improve efficiencies without affecting front-end operations is also propelling the market growth. Additionally, benefits such as scalability, standardization, and technological innovations are fuelling the demand for shared services.

Market restrain: Data privacy and security concerns associated with shared infrastructure could hamper the adoption of shared services, especially among regulated industries. Lack of skilled workforce and integration challenges with legacy systems also act as a barrier to the market growth. High initial investment requirements also pose a challenge, mainly for small and medium enterprises.


Segment Analysis
The shared services market is dominated by the finance and accounting sub-segment. This is because a majority of businesses look to outsource their finance and accounting processes as these are more procedural and require significant effort to manage internally. Shared services providers help businesses consolidate accounting functions across regions which helps lower costs and improve compliance. The human resources sub-segment is also growing strongly as companies look to automate HR operations like payroll, benefits administration and recruitment through centralized shared services centers.

Global Analysis
North America is expected to remain the largest as well as the fastest growing regional market for shared services during the forecast period. The presence of major shared services providers along with early adoption of advanced technologies across industries is supporting the growth of the market in the region. Asia Pacific is anticipated to showcase significant growth opportunities owing to rapid digital transformation of enterprises and the need to optimize costs. Countries like China, India and Japan are increasingly adopting shared services solutions to streamline business functions on a regional or global scale.

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