The global shared services market encompasses a range of solutions and services that enable organizations to consolidate common operational activities into specialized organizational units. Shared services provide cost savings and efficiencies through concentrated expertise and economies of scale. By outsourcing non-critical operations such as finance & accounting, human resources, procurement, and supply chain management to shared services providers, organizations can focus on their core competencies. The market is witnessing growing adoption across industries as companies look to streamline operations and reduce expenses.
The global Shared Services Market is estimated to be valued at US$ 162.48 Mn in 2023 and is expected to exhibit a CAGR of 14% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The shared services market is slated to gain significant traction in coming years mainly due to rising focus of companies on improving operational efficiencies. Growing preference for outsourcing non-core business processes and functions to expert third-party vendors offering specialized shared services is a key trend. Additionally, shift towards cloud-based shared services solutions that offer advantages such as flexible scalability, lower upfront costs, and omnichannel access is boosting the market prospects. Implementation of artificial intelligence, machine learning, and analytics is another trend being witnessed as shared services providers look to enhance service automation.
Threat of new entrants: The threat of new entrants in the shared services market is moderate. The market requires high capital investment and operational cost to set up the infrastructure. However, new regional players can enter the market with collaboration models.
Bargaining power of buyers: The bargaining power of buyers is moderate. The demand for shared services is growing from large organizations that have better price negotiating power. However, buyer switching cost is low.
Bargaging power of suppliers: The bargaining power of suppliers is low. The shared services market has several technology and platform providers with easy availability of substitutes.
Threat of new substitutes: The threat of substitutes is moderate. New cloud-based technologies pose threat to traditional shared services. However, switching costs to adopt new technologies are high for existing customers.
Competitive rivalry: The competition in the shared services market is high. Players compete on parameters like service quality, scalability, process expertise, and pricing.
The Global Shared Services Market Analysis is expected to witness high growth over the forecast period of 2023 to 2030. The global Shared Services Market is estimated to be valued at US$ 162.48 Mn in 2023 and is expected to exhibit a CAGR of 14.% over the forecast period 2023 to 2030.
North America is expected to dominate the shared services market during the forecast period. The growth can be attributed to high technology adoption and presence of major players in the region. Asia Pacific is projected to grow at the fastest pace due to increasing expenditure on IT infrastructure by organizations in developing countries.
Key players operating in the shared services market are INOVIQ, Bio-Rad Laboratories, Inc., Abbott, Becton, Dickinson and Company, Merck KgaA, QIAGEN, Thermo Fisher Scientific Inc., CENTOGENE N.V., PerkinElmer Inc., and Siemens Healthcare Private Limited. INOVIQ provides human resource and finance management services. Bio-Rad Laboratories offers research and diagnostic laboratory support services.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it