Shared Services Market Size, Share, Outlook, and Opportunity Analysis, 2019 – 2027


Posted April 1, 2021 by shrushtig

Share services refer to managing single or multiple business units by sharing resources and information among different business units of a company.
 
The primary objective of shared services is to enable every business division to focus its limited resources on activities that support the division’s business goals.
The global shared services market was valued US$ 28.79 Bn in 2019 and expected to reach US$ 98.17 Bn by 2027.
Market Dynamics- Drivers
Growing emphasis on cost reduction in overall operations is expected to drive growth of the global shared services market during the forecast period
The operational processes in the companies have witnessed a massive transition in the recent past. Management is now focused on a cost-based approach instead of a transaction-based approach. As of now, there is a need for cost reduction which can be achieved through the centralization of data. Furthermore, organizations are laying emphasis on the processes, which would align operations with a corporate strategy, enhance quality, improve service, reduce redundant or obsolete tasks, and minimize administration cost. Standardized services, accuracy, and timeliness, consolidation of the same tasks across lines of business and legal entities are the factors that affect companies' operations. Therefore, increasing focus cost reduction is expected to drive the global shared services market growth over the forecast period.
Rising demand for enhancing customer service is expected to propel the global shared service market growth over the forecast period
In any industry, good customer service plays a crucial role and helps the company to grow further and strengthen its brand in the market. Customer service is a major process offered through shared services. Thus, by using expertise on customer service executives from the shared service process, companies can focus on their core competencies. Hence, these factors are expected to support the market growth in the near future.
North America region dominated the global shared services market in 2019, accounting for 35.1% share in terms of value, followed by Europe, Asia Pacific, Middle East and Latin America respectively.
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Market Dynamics- Restraints
Challenges regarding data security and complexity are expected to restrain growth of the global shared services market over the forecast period
Shared service providers store, manage, and process an organization’s confidential and restricted personal information, complex data. Access to the confidential data is restricted by authorization objects of the shared service framework. However, this confidential information is always subjected to cyber-attacks by cyber criminals. Protecting sensitive shared services and employee information is the ultimate responsibility of the shared service provider. Hence, these factors are expected to restrict the market growth in the near future.
Negative impact of technological innovations is expected to hamper the global shared services market growth over the forecast period
Shared service providers use different types of technology and platforms to run their business. New technology or a new platform is the challenging factor and likely to bring disruption to the shared services model. Marketplace driven platforms, cloud computing, automation, and robotics are some of the major technology trends expected to hamper the market growth. Moreover, there is a possibility of the current shared service model becoming obsolete since it is difficult to match with the pace of technology evolution as it is moving at a faster pace than shared service models are developing.
Market Opportunities
Legal end-use segment can provide major growth opportunities for market players
The primary role of a company’s legal function is to protect the company’s rights and advocate its interest. Emergence of new technologies and growing need for cost reduction has accelerated the adoption of shared services in legal end-use in the recent past. It has compelled companies’ legal department to change their conventional business approach. Some of the advantages of legal shared services are dispute avoidance, alternative dispute resolution, subject matter expertise. Thus, legal shared services allow companies to resolve any internal dispute. These disputes are handled through third-party point of view and there are fewer chances of influence of any party.
Massive growth opportunities in emerging markets
Growing need for reducing costs and enhancing quality of services is accelerating growth of the market. This is achieved in emerging and new countries due to the availability of skilled resources at a low cost. Moreover, a company improves its capability to respond to growth opportunities by establishing shared services centers in emerging and new markets. The global shared service market is growing at a rapid pace in emerging economies, owing to the advantages of setting shared service centers, irrespective of skill shortages, language barriers, time zone differences, and regulatory compliance.
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Categories Biotech , Computers , Engineering
Tags shared services market outlook , shared services market share , shared services market size
Last Updated April 1, 2021