The Shared Services Market is estimated to be valued at US$ 162.48 Mn in 2023 and is expected to exhibit a CAGR of 23.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Shared services functions include support services such as finance, human resources, procurement, and facilities management. These services are provided by an organization or separate business unit making specialized expertise, processes and technology available to those internal stakeholders needing the service. Shared services approach helps consolidate resources and standardize processes for efficiency and scalability. It offers benefits such as improving operational efficiency, enforcing regulatory and process compliance, greater control over spending etc.

Market key trends:
One of the key trends driving the growth of shared services market is the increased scalability and cost reductions offered by shared services model. Shared service centers have capability to scale operations efficiently based on the demand from business units with minimum additional investments. It also helps organizations reduce duplicative work, enables process standardization and automation to significantly reduce operating costs. Sharing assets and resources across functions and business divisions provides opportunities for better resource management and frees up capital for reinvestment into core operations. This has increased adoption of shared services model across industry verticals. Scalability and cost optimization are crucial success factors for companies operating in highly competitive environment which is fueling demand in the market.

Porter’s Analysis
Threat of new entrants: The high investments and costs associated with infrastructure and technology serves as entry barriers for new players in the shared services market.
Bargaining power of buyers: Buyers in the shared services market have moderate bargaining power due to the availability of substitutes and customized offerings by vendors as per buyer requirements.
Bargaining power of suppliers: The presence of several intermediaries reduces the bargaining power of suppliers in the shared services market.
Threat of new substitutes: Substitutes like outsourcing pose a low threat due to advantages like cost saving and scalability offered by shared services.
Competitive rivalry: High.

SWOT Analysis
Strengths: Economies of scale, efficiency gains, cost optimization.
Weaknesses: High initial setup costs, need for standardized processes, change management challenges.
Opportunities: Growth in outsourcing, adoption in SMBs, advancement of technologies.
Threats: Security and compliance issues, talent crunch, changing business models.

Key Takeaways
The global Shared Services Market is expected to witness high growth, exhibiting CAGR of 23.% over the forecast period, due to increasing need to optimize business processes. The global shared services market size for 2023 is US$ 162.48 Mn.

Regional analysis: North America dominates the shared services market currently due to early adoption. Asia Pacific is expected to grow at the fastest rate due to growing adoption among large enterprises in countries like China and India.

Key players operating in the shared services market are Infosys Limited, SAP, HCL, EXL, Atos SE, Accenture, Genpact, IBM Corporation, Oracle Corporation, Cognizant, Capgemini SE, and Tata Consultancy Services Limited and Others. Key players are focusing on partnerships and mergers to expand service offerings and geographical footprint.

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