You are here
Global Shared Services Market – by Function, Component, End User, Region - Market Size, Demand Forecasts, Company Profiles, Industry Trends and Updates (2018 - 2025)
Shared Services Market – Segmented by Function, Component, End User, Region | Market Size, Growth, Drivers, Trends, Industry Structure and Forecasts | MarkGenes
Shared services include including processes, people, and technologies that focuses on defined business functions which help in cost reduction which would otherwise be higher if these services are taken separately by different divisions of a company. Business process automation reduces manual work and increases operational efficiencies in finance, HR, and supply chain process through data accuracy and consistency using shared services. Companies in the market are setting up customized shared service centers (SSCs) to professionally bring about their functional departments such as finance, HR, marketing, and CRM in the most efficient way. Customized SSCs are planned to accomplish specific functions of different business elements within a huge organization
The global shared services market was USD 56.09 billion in 2018 and is estimated to reach USD 111.26 billion by 2025 at a CAGR of 10.28% during the forecast period. The vendors are competing to secure contracts from governments for shared services where the demand is growing exponentially. These vendors are predominantly competing on factors such as the quality of service offerings, new technologies, pricing, and new service offerings
Growth by Region
Asia Pacific will witness the highest growth rate during the forecast period. Strong ethnic similarity and low-cost arbitrage in the region have made Asia Pacific one of the most lucrative regional markets. Furthermore, the presence of many institutions and universities in the region facilitates access to a skilled labor force with multilingual skills, which is quite like the culture prevalent in Western Europe. This is anticipated to boost the global shared services center market significantly Several industries in the Americas such as manufacturing, healthcare, aerospace, and oil and gas implement shared services to enhance the operational efficiencies and the quality of delivery systems. The implementation reduces the administrative and IT costs and offers IT services to support the adoption of next-generation technologies in industries. Additionally, the availability of a highly skilled workforce at lower wages across emerging nations in Eastern Europe and Asia Pacific is envisioned to boost the market
Drivers vs Constraints
The shared services market is intensely competitive as the vendors are offering similar shared services with little product differentiation. Their performances are evaluated based on financial overview, strategies adopted, cost structure, and expansion trends, among others Customized SSCs provide flexibility to manage some of the functions through in-house IT service management. Enterprises are preferring to setup food safety system certification (FSSCs) or human resources shared services center (HRSSCs) to share resources at a low cost and increase flexibility in the IT systems. This process minimizes redundancy and errors in the transactional processes and enhances the quick and high-quality service delivery systems for customers Majority of the companies globally use shared services. Further, the market is expected to grow at a rapid pace due to increase in number of deals in shared services market across public and private sectors. Shared services save approximately 20 to 30% of the cost which motivates the companies to adopt this service On the other hand, implementing shared services is a complex process as it needs alteration in the complete structure and professional process of the organization. It also requires a lot of time to implement shared service across the organization.
Industry Structure and Updates
The market is moderately consolidated with few players holding crux of the market share. Organizations are implementing shared services in the F&A segment to standardize and transform the finance processes to achieve economies of scale, to ensure that all the regulatory and compliance norms are met and maximize the efficiency of the financial services. SSCs for finance are centralized service delivery systems for financial processes such as invoice management, analysis, and reporting
Browse other Information & Communication Technology reports at: https://markgenes.com/industry-reports/information-and-communication-technology
MarkGenes Business Consulting
2nd Floor, Aditya Enclave,
Hyderabad - 500033
MarkGenes is a Market Intelligence and Business Consulting firm with Market Research as its core combining unparalleled experience, comprehensive capabilities across all industries and business functions while putting together the teams with strong functional knowledge and technical expertise.
Syndicate Research Reports
Our syndicated market research reports provide detailed coverage and market intelligence on categories of various industries. These reports are focused for broader industry audience for market traction. Latest happenings are tracked by our category specialists and are updated / modified every year, these updates are sent to the purchased client on a quarterly basis till one year of purchase.
Customized Research Reports
Our customized market research reports are a requirement from a specific client which focus on a specific agenda. Our industry contacts with experts, coupled with internal category specialists ensure that the requirement is fulfilled. Our quick turnaround time means the client will have enough buffer time to take understand and take necessary actions.