Shared Services Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, Canada, China, India, Germany - Size and Forecast 2024-2028

Shared Services Market Size 2024-2028

The shared services market size is projected to increase by USD 284.68 billion, at a CAGR of 17.09% between between 2023 and 2028. The need for business process automation is the key factor driving market growth. Business process automation is an important component of business transformation at a functional level. It reduces manual work and increases operational efficiencies in organizations. This process reduces manual steps in the finance, HR, and supply chain processes through data accuracy and consistency using shared services. Automated business processes minimize redundancy and errors in transactional processes. The emergence of robotics process automation is the primary trend shaping market growth. Robotics process automation (RPA) is a comprehensive IT solution developed through advanced technologies such as AI, intelligent systems, and automated software programs. RPA can be used to automate manual business processes across several functions in organizations such as F&A, HR, and SCM. RPA eliminates manual errors in the business processes of organizations and enhances operational efficiencies to a great extent.
 

What will be the Size of the Market During the Forecast Period?

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Market Segmentation

By Deployment 

The market share growth by the on-premises segment will be significant during the forecast period. On-premises shared services can be customized to meet the specific needs of an organization, allowing for greater control and flexibility. This segment is particularly popular among large organizations with complex processes and regulatory requirements, as it enables them to maintain tighter control over their data and processes. The growth of the on-premises segment is driven by factors such as the need for data privacy and security, which has become a major concern for companies in the wake of several high-profile data breaches.

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The on-premises segment showed a gradual increase in the market share of USD 74.43 billion in 2018. To overcome challenges with the deployment of on-premises software, end-users of on-premises shared services are investing in automation and artificial intelligence (AI) technologies to reduce the need for manual intervention and increase efficiency. This includes the use of chatbots, robotic process automation (RPA), and machine learning to automate routine tasks and improve the accuracy and speed of processes. Thus, the on-premises segment is expected to drive the growth of the global shared services market during the forecast period.

By Application

The On-premises shared services will be significant during the forecast period. Shared services for finance and accounting serve as a key function for most organizations. Therefore, shared services in the F and A area are widely adopted by leading organizations. In this segment, organizations must ensure that the finance processes meet the regulatory and compliance requirements as per guidelines. Shared service providers help firms ensure that all the regulatory and compliance norms in the management of financial processes are followed. The SSCs for finance are centralized service delivery systems for financial processes such as invoice management, analysis, and reporting. The integrated SSC and COE model for financial management provides effective solutions for business management and quality enhancement of finance processes. Such factors will increase segment growth during the forecast period.

Regional Overview

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North America is estimated to contribute 35% to the growth of the global market during the forecast period. 
Technavio's analysts have provided extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. Shared services are preferred by industry verticals in the North American region, such as manufacturing, healthcare, as well as oil and gas, to enhance the quality of delivery systems. Shared services are evolving as a strategic tool in North and South America to counter the growing competition in the domestic and international markets. South America is evolving as a preferred destination for the location of SSCs.

Furthermore, with abundant data flowing across the world, data management has become one of the key challenges for financial institutions in developed regions such as North America. Artificial intelligence and machine learning are expected to play a crucial role in analyzing these huge volumes of data sets for actionable insights, especially around risk management. Furthermore, with the advent of technological innovation, financial technology companies are expected to play a key role in the financial services sector. Hence, such factors are expected to drive market growth in this region during the forecast period. 

Market Dynamics and Customer Landscape

The Shared Services Market is primarily driven by the need for business process automation, prompting organizations to streamline their operations and enhance efficiency. A notable trend in this market is the emergence of robotics process automation, revolutionizing how repetitive tasks are performed within the Shared services center (SSC). However, the industry faces challenges in the effective design and implementation of SSCs, requiring careful consideration of procurement, customer satisfaction, and the Administrative Services Center (ASC) while ensuring data security and mitigating the threat of data leakage posed by cybercriminals. By centralizing company processes and promoting uniformity across organizational units, SSCs enable businesses to focus on their core capabilities while outsourcing non-core operations. Despite concerns such as labor costs and headcount, the shared services market continues to grow, driven by the demand for streamlined processes and supported by ongoing market growth analysis to identify emerging opportunities and navigate challenges effectively.

Key Market Driver

The need for business process automation is the key factor driving market growth. Business process automation is an important component of business transformation at a functional level. It reduces manual work and increases operational efficiencies in organizations. This process reduces manual steps in the finance, HR, and supply chain processes through data accuracy and consistency using shared services. Automated business processes minimize redundancy and errors in transactional processes.

Moreover, organizations that have implemented shared services display a correlation between process automation and operational efficiencies. The automation of different processes across finance and HR functions helps to standardize the process and maintain cost controls for sustainable competitive advantage in the marketplace. Therefore, increasing demand for business process automation will drive market growth during the forecast period.

Significant Market Trends

The emergence of robotics process automation is the primary trend shaping market growth. Robotics process automation (RPA) is a comprehensive IT solution that is developed through advanced technologies such as AI, intelligent systems, and automated software programs. RPA can be used to automate manual business processes across several functions in organizations such as F&A, HR, and SCM. RPA eliminates manual errors in the business processes of organizations and enhances operational efficiencies to a great extent.

Moreover, aligned with market trends and analysis, the use of RPA in SSCs is gradually increasing to automate routine business processes so that organizations can share data and enterprise resources within their business units. Chief information officers (CIOs) of SSCs are revamping their traditional IT systems to digitally transform workflow across business units with the emergence of automated and intelligent systems. Thus, such factors will increase the market growth during the forecast period. 

Major Market Challenges

The effective design and implementation of SSCs will be a major challenge impeding market growth. The designing and implementation of SSCs require technical expertise and domain experts to assess the requirements of the clients. SSCs should be carefully designed to fulfill business requirements specific to the clients. The implementation of SSCs requires CAPEX and IT systems to design the infrastructure. Shared services can be seamlessly delivered to clients with the help of adequate and advanced IT infrastructure.

Additionally, the implementation of SSCs that lack the requisite quality of IT services might prompt the termination of shared services contracts. Inadequate design and development of SSCs as per the client's business requirements will incur losses for the organizations. Therefore, vendors should carefully implement the IT infrastructure for the successful delivery of shared services to their clients. Thus, such factors will hinder the market growth during the forecast period.

Market Customer Landscape

The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market  growth and trends strategies.

Global Market Customer Landscape

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

• Accenture Plc: The company offers shared services such as mobilization as a service. It also offers Process optimization and automation services and Intelligent enterprise services.
• Atos SE: The company offers shared services such as augmented interactive reality shared service. It also offers a joint mission base across security domains that facilitates collaborative combat by automatically established, digital capabilities, under the brand Shared Service and Information Room SSIR.
• Capgemini Service SAS: The company offers shared services such as Benefits Logic financial shared services center. It also offers multi functional or specialized, single governance, under Global Shared Services Organization.

The  Market  growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• CGI Inc.
• Cognizant Technology Solutions Corp.
• Deloitte Touche Tohmatsu Ltd.
• ExlService Holdings Inc.
• Gartner Inc.
• Genpact Ltd.
• HCL Technologies Ltd.
• Infosys Ltd.
• International Business Machines Corp.
• KPMG International Ltd.
• Oracle Corp.
• PricewaterhouseCoopers LLP
• SAP SE
• ServiceNow Inc.
• Tata Consultancy Services Ltd.
• The Hackett Group Inc.
• Wipro Ltd.

The market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.

• Deployment Outlook
  • On-premises
  • Cloud

• Application Outlook
  • F and A
  • IT
  • SCM
  • HR
  • CRM

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

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Market Analyst Overview

The Shared Services Market is experiencing significant growth across industries as businesses seek cost-effective solutions to enhance operational efficiency and productivity. With a focus on centralization of data and process standardization, organizations are streamlining operations in finance and accounting, human resources, information technology, supply chain management, and customer service and support. In the IT sector, cloud-based shared services offer scalable solutions for IT support, application development, and infrastructure management, enabling enterprises to navigate technological advancements and cybersecurity challenges. Similarly, in human resources, HR administration and talent acquisition benefit from standardization and HR analytics.

Moreover, the BFSI segment leverages shared services for financial reporting, customer support, and back-office functions, optimizing cost reduction and service quality. However, challenges such as integration complexities and cultural misalignment require effective communication and training to overcome. As businesses embrace digital transformation, shared services become integral to business expansion and geographic diversification, driving the global shared services industry forward. By harnessing cutting-edge technologies and specialist knowledge, organizations can adapt to shifting business conditions and maintain a competitive edge in the market.

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What are the Key Data Covered in this Shared Services Market Research Report?

• CAGR of the market report forecast during the forecast period
• Detailed information on factors that will drive the growth of the market  between 2024 and 2028
• Precise estimation of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across North America, Europe, APAC, South America, and Middle East and Africa
• Thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of Industry companies

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