Shared Services Market: Current Analysis and Forecast (2023-2030)

Shared services refer to a business model where centralized support functions are established within an organization to provide common services to various departments or business units. These services can range from finance and accounting, human resources, IT support, procurement, and more. The concept behind shared services is to streamline operations, optimize efficiency, and reduce costs by eliminating duplication of efforts across different departments

The shared services market was valued at USD 31.8 Billion in the year 2022 and is expected to grow at a strong CAGR of around 24.1% during the forecast period. Globally, the adoption of shared services continues to escalate across industries and geographies, driven by the pursuit of operational efficiency, cost optimization, and enhanced service delivery. Organizations worldwide are recognizing the transformative potential of shared services in streamlining processes, consolidating operations, and leveraging economies of scale. This global surge is fueled by advancements in technology, particularly the advent of cloud computing, automation, and data analytics, enabling shared service centers to transcend geographical boundaries and operate seamlessly across diverse regions. Moreover, the COVID-19 pandemic has accelerated the adoption of shared services as companies pivoted towards remote work, prompting a reevaluation of operational models and a greater reliance on digital solutions.

Based on components, the market is segmented into software and services. The services segment has highest market share and is expected to dominate during forecast period, driven by the quest for streamlined operations and cost efficiency. One significant trend contributing to this growth is the expanding global footprint of companies. With businesses spanning diverse geographies, the need for software and services capable of multilingual support becomes imperative. Companies are increasingly investing in services tailored to specific languages, such as customer support, translation services, and multilingual content creation.

Based on End-Users, the market is segmented into BFSI, media and entertainment, manufacturing, healthcare and others( utility, consumer goods, and education). The BFSI sector dominate with a highest share of the market. In the BFSI sector, companies are leveraging shared services to centralize back-office functions like accounting, compliance, and customer support. By consolidating these operations, financial institutions achieve cost efficiencies, standardize processes, and enhance their ability to navigate regulatory complexities. Shared services enable BFSI organizations to optimize resources, improve service delivery, and redirect focus toward innovation and client-centric initiatives.

Based on the deployment, the market is segmented into cloud and on-premises. The cloud held a largest share of the market in 2022. Furthermore, the cloud's flexibility and ability to accommodate remote work have been particularly beneficial in recent times. With the rise of remote and hybrid work models, cloud-based shared services ensure seamless accessibility to essential tools and data from anywhere, fostering collaboration among dispersed teams. Additionally, Software as a Service (SaaS) solutions like Workday and ServiceNow are gaining traction in shared service setups, offering specialized functionalities in HR, IT, and other shared service domains.

For a better understanding of the market adoption of the shared services, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, UK, France, Italy, Spain, Rest of Europe), Asia-Pacific (China, Japan, India, Korea, and Rest of Asia-Pacific), Rest of World. North America will hold the largest share of the market in 2022. North America serves as a hub for shared services evolution, with corporations across diverse industries actively integrating these models into their operational frameworks. The region's dynamic business landscape has fostered the widespread adoption of shared services. Various industries, including finance, healthcare, technology, telecommunications, and manufacturing, have embraced shared services as a means to streamline operations, optimize resources, and enhance service delivery. The collaborative nature of shared services has revolutionized how North American businesses operate, enabling them to consolidate resources, standardize processes, and focus on core competencies, enhancing competitiveness in both domestic and global markets. For instance, in 2023, TD Bank Group (TD) reaffirms its commitment to strengthening its technology workforce by tapping into relationships with key recruitment and tech talent organizations, such as Black Professionals in Tech Network (BPTN) and FDM Group, to continue to help build a strong pipeline of diverse talent and new colleagues.

Some of the major players operating in the market include: Cognizant; IBM., Accenture; HCL Technologies Limited, Genpact; Oracle; ExlService Holdings, Inc; Capgemini; Infosys Limited; SAP SE.