by The Shared Services Market is in trends by digital transformation. Shared services provide centralized support functions to multiple business units in an organization. This allows business units to focus on their core operations by outsourcing non-core functions like HR, finance and accounting, supply chain management etc. Shared services deliver cost savings, improve operations through standardized best practices and help manage regulatory changes efficiently.
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 from 2024 to 2031.
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. These companies are focusing on developing innovative shared services solutions for organizations across industries.
The growing demand for centralized functions from enterprises is a major driver for the shared services market. Centralizing support functions delivers cost savings through economies of scale and standardization. It allows companies to focus on their core operations.
The Shared Services Market Demand is expanding globally as more companies look to leverage shared services models. Regions with large outsourcing markets like North America, Europe and Asia Pacific offer significant growth opportunities. Countries like India have emerged as important shared services hubs.
Market Key Trends
Digital transformation is a key trend in the shared services market. Advanced technologies like analytics, automation, cloud and Artificial Intelligence are enabling innovative shared services models. These technologies help improve the efficiency, compliance and user experience of shared services. Analytics allows optimization of operations based on data-driven insights. Automation streamlines routine tasks to boost productivity. Cloud deployment offers scalability and pay-per-use models. AI assists with tasks like customer support through virtual agents. This is driving the next generation of digital shared services solutions.
Porter’s Analysis
Threat of new entrants: Low capital requirement allows new companies to enter the market easily. However, established companies have strong brand names and economies of scale.
Bargaining power of buyers: Buyers have moderate to high bargaining power due to availability of substitute offerings from various vendors.
Bargaining power of suppliers: A few large technology providers control majority of market share giving them high bargaining power over customers.
Threat of new substitutes: Emerging technologies like cloud computing, AI and IoT pose threat of substitution.
Competitive rivalry: Intense competition due to low switching costs has led to pricing pressures. Key differentiators are technological expertise, reliability and customer support.
Geographical regions
North America accounts for the largest share of the shared services market currently, valued at US$XX million in 2024. This is attributed to presence of majority of key players and early technology adoption in countries like US and Canada.
Asia Pacific is poised to be the fastest growing regional market at a CAGR of XX% during the forecast period. Increasing investments towards modernizing public infrastructure and industrial automation are driving demand from countries such as China and India.
*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.
