Shared services are consolidated and centralized service functions that are adopted across an enterprise to increase synergies and operational efficiencies. Shared services provides key functions such as human resources, marketing, finance, and procurement services to different business units of an organization. This enables economies of scale, skill standardization, reduced costs, and enhanced operational efficiencies. Growing need to centralize non-core operational activities is prompting organizations to adopt shared services functions.

The global shared services market is expected to exhibit significant growth, driven by growing digitization trends across industries. Organizations are increasing focus on streamlining back-office processes to concentrate on core business operations. Shared services enables centralization of non-revenue generating activities in a standardized manner through digitization. This allows deployment of technologies such as cloud, AI and automation to analyze data-driven insights, standardize processes and reduce turnaround time. For instance, finance and accounting shared services leverages automation to generate standardized reports on a real-time basis.

The global shared services market is estimated to be valued at US$ 162.48 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 Dynamics:

One key driver facilitating growth of the shared services market is digitization. Increasing focus on digitizing back-office shared services functions is propelling market growth. Adoption of technologies such as analytics, cloud computing, AI and RPA allows organizations to centralize data-driven processes in an automated manner. This enhances operational efficiency, reduces errors and turnaround time. For instance, finance shared services leverages AI-based solutions to automate paperwork processing, data entry and reconciliations at scale. Automated workflows standardize routine tasks and allow finance teams to focus on value-added tasks. Growing demand for digital transformation of shared services is expected to drive significant market opportunities over the forecast period.

Segment Analysis
The shared services market can be segmented into business processes services, information technology services, marketing and sales services, customer support services, and human resource management services. The business process services segment is projected to dominate the market as enterprises are widely outsourcing finance, accounting, and procurement activities to third-party service providers to focus on their core operations. The demand for shared services in business process outsourcing is high as it helps organizations improve business processes and reduce operational costs.

PEST Analysis
Political: Governments across various countries are promoting outsourcing and shared services adoption to enhance industrial productivity and expand their economies. They offer tax incentives and subsidies to attract global service providers.
Economic: The adoption of shared services is increasing to optimize costs and boost efficiency. It allows organizations to focus on core competencies while outsourcing non-core operations. This spurs economic growth.
Social: Shared services enable better services to customers and citizens. Cultural acceptance of outsourcing is increasing as it creates new direct and indirect jobs.
Technological: Advance technologies like cloud, analytics, AI/ML have made shared services more effective. It has transformed operations through automation, centralized operations and real-time data access across geographies.

Key Takeaways
The Global Shared Services Market Size  is expected to witness high growth over the forecast period driven by the need for cost optimization and improved efficiencies across enterprises. The global shared services market is estimated to be valued at US$ 162.48 in 2023 and is expected to exhibit a CAGR of 8.3% over the forecast period 2023 to 2030.

Regional analysis
The shared services market in North America accounts for the largest share currently led by the US and Canada. This is attributed to the mature outsourcing and technological adoption in the region. The presence of major global service providers is also driving market growth. Asia Pacific region is projected to witness fastest growth in coming years led by China and India. Higher outsourcing adoption from industries and growing BPO sector in these nations will propel market opportunities.

Key players
Key players operating in the shared services market are Dell Inc., Curtiss-Wright Corp., Getac Technology Corp., General Dynamics Corp., and Zebra Technologies Corp. Dell Inc. is one of the dominant players providing IT infrastructure services including servers, networking and data management to clients globally. Getac Technology Corp. offers rugged laptops and tablets for industrial and public safety applications.

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