Shared Services Market

Shared Services Market Overview

The shared services market size is projected to grow from $58.98 billion in 2024 to $473 billion by 2035, representing a CAGR of 20.84% during the forecast period 2024-2035.

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The new research study consists of industry trends, detailed market analysis, key market trends of the shared services market, SWOT analysis and value chain analysis .The swift transformation in the business environment is compelling organizations to evaluate their operations and structures to identify which are delivering extensive business results where shared services play a key role in enhancing service delivery and efficacy. Shared services refer to business models that are largely used by organizations to unify similar business functions into a single unit that supports the entire organization. The shared service unit is also known as a unit shared service organization or services center that offers centralization, standardization, service level agreements, and emphasis on business and its core activities.

In today’s rapidly evolving technological landscape, enterprises are vigorously adopting shared services to enhance their business efficiency, reduce costs, and better service quality by minimizing redundancy, standardizing operations, and benefiting economies of scale. The significance of shared service centers eliminates the need for each department’s support functions by providing these services across different organizations. Shared services incorporate several types of services such as finance and accounting, human resources, information technology, procurement, and more. In terms of demand, finance & account and information technology services accelerate the shared service market growth. Besides, continuous technological advancements are fostering the shared services market development due to increased automation and a shift towards cloud computing technologies. Overall, the growing trend of outsourcing for innovative solutions and increasing focus on cost reduction in business operations are the factors anticipated to expand the scope of the shared services market during this forecast period.

Shared Services Market Share Insights

The market report presents an in-depth analysis of the various service providers that are involved in offering shared services market, across different segments, as defined in the table below:

Shared Services Market Key Segments

Market Share by Type of Component

The global shared services market is segregated into two types of components: software and services. According to market research, the service segment acquires the majority of the market share which will likely fuel the segment's growth. The elevating demand for professional services that support the implementation and maintenance of shared service centers coupled with the requirement for expertise in automation and data management technologies are ascribed to enhance the growth of the segment. However, the software component is projected to grow at a higher CAGR due to a rise in demand for software as a service (SaaS).

Market Share by Type of Deployment

This segment describes types of deployment in the global shared services market which include cloud-based and on-premises. As per market research, cloud-based deployment obtains the highest market share and is likely to lead the segment during the forecast 2024-2035. The advantages of cloud-based software solutions in flexibility, scalability, and accessibility are the major factors to augment the segment growth. Also, the cost-efficiency and handling to anywhere feature, make the cloud-based solutions more popular. Hence, the segment is anticipated to rise at a substantial CAGR throughout the projection period.

Market Share by Type of Services

The global shared services market is distributed into several types of services namely communication and marketing, data analytics, facilities management, finance accounting, human resources, information technology, procurement, project management, and others. According to analysis, accounting & finance services are likely to hold the maximum shared services market share which will propel the segment growth till 2035. The shared services centers play a critical role in driving segment growth by managing processes including invoice management, financial analysis and offering centralized solutions and enhancing efficiency and compliance. However, the human resources segment is expected to register a higher CAGR due to the rising demand for effective HR processes and the increasing need to manage a global workforce effectively.

Market Share by Type of Organization

Based on the different types of organizations, the global shared services market is bifurcated into large enterprises and small and medium-sized enterprises. The large enterprises segment is estimated to obtain the majority of the market share and will lead the market segment over this forecast. Due to cost-effectiveness, large-size corporations are progressively adopting shared services to centralize and streamline their myriad business operations. While small and medium-sized enterprises are expected to experience significant growth rates driven by the benefits of shared services in improved services and cost reduction.

Market Share by Type of End User

The distribution of the global shared services market is split into a variety of end-users such as BFSI, healthcare, IT and telecommunications, manufacturing, retail and consumer goods, and others. As per market research, the BFSI segment holds the major market share and is likely to lead the segment over this projection period. Majorly, the segment drives the demand for shared services to manage banking, investment, financing, and other transactional activities, thereby leading the segment's growth. Whereas the retail and consumer goods segment is expected to expand at a faster CAGR owing to the growing focus on customer experience. Therefore, organizations are implementing shared services to improve user satisfaction and seamless experience. 

Market Share by Geographical Regions

This segment highlights the distribution of the Shared Services Market across various geographical regions such as North America, Europe, Asia, Latin America, the Middle East, North Africa, and the Rest of the World. In terms of market revenue, North America captures the majority of the market share and dominates the segment with the presence of diverse industries in the region that increasingly adopt such business models for their functions. Furthermore, Asia is likely to experience a faster growth rate driven by rapid industrialization which will likely fuel the demand for shared services in the region.

Shared Services Market Key Insights

The “Shared Services Market, Till-2035: Distribution by Type of Component (Software and Service) Type of Deployment (Cloud-based and On-Premises), Type of Service (Communication and Marketing, Data Analytics, Finance & Accounting, Facilities Management, Human Resources, Information Technology, Procurement, Project Management, and Others), Type of Organization (Large Enterprises and Small and Medium-Sized Enterprises), Type of End User (BFSI, Healthcare, IT and Telecommunications, Manufacturing, Retail, and Consumer Goods, and Others), Geographical Regions (North America, Europe, Asia, Latin America and Middle East and North Africa and Rest of the World): Industry Trends and Global Forecasts “report features an extensive study of the current market landscape, market size and future opportunity within their shared services market, during the given forecast period. The market report highlights the efforts of several stakeholders involved in this rapidly emerging segment of the service providers industry. Key takeaways of the shared services market report are briefly discussed below.

Market Trends in Shared Services Market

The shared service industry is witnessing an extensive demand for cloud computing and cloud-based software solutions which have expanded the potential growth of the industry. Influenced by technology, software as a service (SaaS) and platform as a service (PaaS) are gaining traction in the market. The greater scalability, flexibility, and broader accessibility of such software, make it effortless for businesses and organizations to handle their services remotely, thereby thriving the market demand. As a result, to leverage technological advancements, service providers are increasingly embracing innovative technologies like blockchain , artificial intelligence, IoT sensors , and machine learning to generate a more effective and transparent shared services environment. For instance, in January 2024, Cognizant  launched an AI-powered Innovation Assistance tool. This tool is designed to integrate Cognizant’s internal innovation program which allows superior creativity and innovation among the team of Cognizant employees.

Competitive Landscape of Shared Services Market

The competitive landscape of the shared services market is categorized into several big and small companies in the global marketplace. The market experiences intense competition due to the presence of leading industry players and niche tech companies. However, the top companies such as Cognizant, Deloitte, DXC, Genpact, IBM, and others acquire the maximum share of the market. Their competitive strategies like enhanced service portfolio, collaboration, partnership, acquisition and mergers aid them to maintain their dominance in the global marketplace. 

Key Drivers of Shared Services Market

Significantly, the rising inclination toward innovative business solutions to gain higher efficiency and functionalities is one of the key drivers to uplift the shared services market growth. Along with this, the advantages of shared services in process standardization and optimization augment the demand for the services as they offer uniformity and consistency to all types of organizations. Additionally, the growing focus on reducing costs by centralizing services to obtain economies of scale and better service quality, are some of the substantial market drivers in expanding the opportunities for the shared services market during this forecast period. 

Regional Analysis: North America is Likely to Lead the Market with the Largest Shared Services Market Share

With regard to regional insights, North America’s largest corporate sector with giant multinational companies that increasingly implement such business models in their operations, foster the shared services market growth. The high adoption rate of advanced technology and business process automation fuels the demand for shared services in the region as North America is one of the early adopters of advanced technology like robotics  process automation, machine learning, and artificial intelligence. Additionally, well-established key industries such as healthcare, finance, and information technology are ascribed to propel the demand for various shared services for human resources, procurement, and financial operations within these end-use industries and will likely continue to lead the market for shared services. 

Leading Companies in the Shared Services Market

Examples of key service providers involved in the shared services market (which have also been captured in this market report, arranged in alphabetical order) include Accenture (Ireland), Capgemini (France), Capita (UK), Cognizant (US), Deloitte (UK), DXC (US), Genpact (US), IBM (US), Infosys (India), PwC (UK), TCS (India), Wipro (India). This market report includes an easily searchable Excel database of all the companies who have adopted the shared services market.

Shared Services Market Report Coverage

The market report presents an in-depth analysis, highlighting the capabilities of various companies engaged in this domain, across different segments. Amongst other elements, the market report includes:

• A preface providing an introduction to the full report, shared services market, 2019-2023 (Historical Trends) and 2024-2035 (Forecasted Estimates).
• An outline of the systematic research methodology adopted to conduct the study on shared services market, providing insights on the various assumptions, methodologies, and quality control measures employed to ensure the accuracy and reliability of our findings.
• An overview of economic factors that impact the overall shared services market, including historical trends, currency fluctuation, foreign exchange impact, recession, and inflation measurement.
• An executive summary of the insights captured during our research. It offers a high-level view on the current state of the market for shared services and their likely evolution in the mid-long term.
• A detailed assessment of the shared services market landscape, based on several relevant parameters, including year of experience, company size, location of headquarters, and ownership structure.
• Elaborate profiles of prominent players engaged in the shared services market, featuring information on their year of establishment, location of headquarters, company size, company mission, company footprint, management team, contact details, financial information, operating business segments, shared services portfolio, moat analysis, recent developments, and an informed future outlook. 
• A value chain analysis featuring a discussion on various stakeholders involved in the development of the shared services market, from suppliers to end-users.
• A discussion on affiliated trends, key drivers and challenges, under a SWOT framework, which is likely to impact the industry’s evolution, along with a Harvey ball analysis, highlighting the relative effect of each SWOT parameter on the overall shared services market.
• A detailed estimate of the current market size and the future growth potential of the shared services market over the next decade. Based on multiple parameters we have provided an informed estimate on the market evolution during the forecast period 2024-2035. The report also features the likely distribution of the current and forecasted opportunity within the shared services market. Further, in order to account for future uncertainties and to add robustness to our model, we have provided three forecast scenarios, namely conservative, base, and optimistic scenarios, representing different tracks of the industry’s growth.
• Detailed projections of the current and future shared services market across various types of components such as software and services.
• Detailed projections of the current and future shared services market across various types of deployment such as cloud-based and on-premises.
• Detailed projections of the current and future shared services market across various types of services such as communication and marketing, data analytics, finance and accounting, facilities management, human resources, information technology, procurement, project management, and others.
• Detailed projections of the current and future shared services market across various types of organizations such as large enterprises and small and medium-sized enterprises.
• Detailed projections of the current and future shared services market across various types of end user such as BFSI, healthcare, IT & telecommunications, manufacturing, retail and consumer goods, and others.
• Detailed projections of the current and future market for shared services across various geographical regions, such as North America (US, Canada, Mexico, and other North American countries), Europe (Austria, Belgium, Denmark, France, Germany, Ireland, Italy, Netherlands, Norway, Russia, Spain, Sweden, Switzerland, UK and other European countries), Asia (China, India, Japan, Singapore, South Korea and other Asian countries), Middle East and North Africa (Egypt, Iran, Iraq, Israel, Kuwait, Saudi Arabia, UAE and other MENA countries), Latin America (Brazil, Chile, Colombia, Venezuela and other Latin American countries) and rest of the world (Australia, New Zealand and other countries).

Recent Developments In Shared Services Market

• In July 2024, Capgemini extended its strategic collaboration with SAP. The goal of this partnership is to leverage generative AI to solve critical business challenges, optimizing key processes and functions such as HR, sales, procurement, and sustainability.
• In June 2024, Cognizant introduced its first set of healthcare large language model (LLM) solutions as a part of generative AI collaboration with Google Cloud. This aims to transform healthcare administrative processes and better experiences.
• In June 2024, Capita entered into a partnership with Amazon Web Services to offer a next-generation contact center solution  that aims to aid organizations in transforming customer experience from day one.
• In May 2024, OIA Global inaugurated a new shared services center in Pune India. This service center would deliver cost-effective services across all OIA corporate functions and business segments. 
• In April 2024, Genpact teamed up with Microsoft to enhance modern finance transformation across enterprises. This partnership focuses on data and technology. 
• In March 2024, Cognizant strengthened its strategic partnership with PonIT to continue delivering cloud-managed services for Pon IT across its suite of operating companies.

Author(s): Ronit Sharma and Neha Kashyap

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