The shared services market enables organizations to achieve operational efficiencies through centralized and standardized processes, reducing redundant work. Key shared services functions include finance and accounting, human resources, procurement, information technology infrastructure, and customer relationship management. Outsourcing such non-core functions to specialized shared service centers allows core business teams to focus on growth and innovation. Shared services arrangements simplify processes, enhance control and compliance, and optimize costs through economies of scale.

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 2024 to 2030.

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. The growing demand for specialized managed services from industrial and commercial customers is a major driver for key players in the market. Several players are focusing on global expansion through strategic partnerships and acquisitions to leverage expertise across different regions.

The growing demand for cost optimization and improved productivity across industries has significantly boosted the adoption of shared services solutions in recent years. Centralizing finance, HR, procurement and IT functions into shared services centers helps organizations reduce costs by 15-25%. Many small and medium businesses are also leveraging managed shared services to access world-class capabilities without large upfront investments.

The global shared services market is expected to witness strong growth over the forecast period driven by expanding global operations of multinational corporations. As companies establish offices and production facilities across countries, they are increasingly adopting standardized shared service models to maintain consistent processes worldwide. Standardization allows enterprises to leverage best practices globally and focus on their core markets. The growing cultural acceptance of outsourcing non-core activities to specialized shared services providers is expected to further accelerate market expansion until 2030.

Market drivers

One of the key drivers for the  Shared Services Market Share is the growing need for standardized processes and controls in geographically distributed organizations. As companies expand globally, it becomes difficult to ensure compliance and maintain oversight of localized financial and operational processes. Consolidating such activities into robust and auditable shared services centers helps manage risks better. This is encouraging more multinationals to partner with experienced shared services providers for standardized processes delivered with scale.

Impact of geopolitical situation on Shared Services Market growth
The shared services market is witnessing changes in growth trends due to the volatile global geopolitical environment. The ongoing Russia-Ukraine conflict and rising tensions between major nations have disrupted supply chains significantly. There have been issues in semiconductor chip procurement which is affecting manufacturing across industries that use shared services infrastructure for technology and IT needs. Rising fuel costs and inflation also pose economic challenges for businesses to maintain operations and invest in new projects. Shared service centers located in conflict areas or neighboring regions witness delays in expansion plans. However, companies are finding ways to diversify risks by establishing collaborative offshore centers or adopting hybrid work models for business continuity. The market will see new opportunities with growing demand for technology solutions that enable distributed operations and cater to workforce flexibility needs in different geographies. Vendors will need innovative service delivery mechanisms, regional connectivity systems and cybersecurity protocols to ensure uninterrupted services globally.

Geographical regions where Shared Services Market value is concentrated
North America currently accounts for the largest share of the global shared services market in terms of value. Major industries based in the US and Canada have established large shared services operations to support their extensive operations and subsidiaries spread worldwide. These centers are hubs for expertise in functions like finance, IT infrastructure management, HR administration, procurement and supply chain coordination for multinational businesses. The high technology adoption rates and large outsourcing industry additionally support market growth in the region. Asia Pacific is another major regional market, especially countries like India, Philippines and China that are popular BPO/SSC destinations. Vendors are expanding or setting up new facilities to tap business opportunities from multinationals and local enterprises rapidly expanding operations across sectors in the developing Asian economies.

Fastest growing region in Shared Services Market
The shared services market in Eastern Europe is witnessing the fastest value growth globally. Countries like Poland, Russia, Czech Republic, Hungary and Romania offer competitive talent availability and business incentives for outsourcing and technology firms to establish new shared services centers. Vendors are attracted to relatively lower costs of operations and skills in areas such as software engineering, accounting and analytics in this region. The governments also provide infrastructure and tax benefits to boost investments. Major organizations are expanding their regional hubs or forming partnerships with local firms to set up delivery centers. This is enabling them to efficiently support the business growth in Western/Eastern European markets and gain strategic advantages with shared resources located closer to these territories. The region presents lucrative prospects and is emerging as a key market for future shared services expansion.

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