Market Insight- Global Shared Services Market

Market Overview

Share services refer to managing single or multiple business units by sharing resources and information among different business units of a company. In other words, shared services are the consolidation of business operations that are used by numerous parts of the same organization. Share services are cost-effective since they centralize back-office operations that are utilized by multiple divisions of the same company thereby minimizing the redundancy. The shared service model focuses on defined business functions, centralized service, and single delivery location. This model caters to the requirement of diver business units within the enterprise and is supported by information technology and its services. 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

  1. 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.

  1. 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.

Shared Services  | Coherent Market Insights

Source: Coherent Market Insights

Market Dynamics- Restraints

  1. 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.

  1. 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

  1. 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.

  1. 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.

Shared Services  | Coherent Market Insights

Source: Coherent Market Insights

Market Trends

  1. Growing trend of process efficiency, process standardization, and centralization of data

Shared services constantly look for opportunities to integrate the functions across organization and expand globally. These functions include process standardization, process efficiency, and centralization of data. Shared service models provide a number of benefits namely leveraging technology, supporting roles, and cross-training of staff. Shared services and multi-function models align with an increasing trend towards process standardization as companies move from independent standards tied to business units. Furthermore, combined administration across the organization provides more prestige among enterprise leadership.

  1. Increasing popularity of self-service and cloud-based solutions

In the recent past, there has been an increase in the use of advanced technologies. This has a number of related parameters such as expansion of self-service, mobile applications, social media, and use of the cloud. Self-service applications allow shared service providers to focus on performing higher-value services. Cloud-based solutions provide numerous benefits such as increased capability, shorter implementations, and lower costs. Thus, by combining both self-service and cloud-based applications, shared service providers can adapt to changing business requirements.

Segment information:

In global shared services market, by End-use segment, the IT & Telecom segment dominated the global market in 2019, accounting for 27.8% share in terms of value, followed by BFSI, Manufacturing, Healthcare and Pharmaceuticals, Media and Entertainment, Retail & Hospitality and Others respectively.

Shared Services  | Coherent Market Insights

Source: Coherent Market Insights

Regulations

Shared Services Canada (SSC) is responsible for delivering mandated email, data center, and network services to partner organizations in a consolidated and standardized manner to support the delivery of Government of Canada programs and services. SSC also provides certain optional technology-related services to government organizations on a cost-recovery basis. Budget 2013 further expanded SSC’s mandate, adding the consolidation of government-wide procurement of software and hardware for workplace technology devices

Competitive Section

Key players operating in the global shared services market are Infosys Limited, SAP, HCL, EXL, Atos SE, Accenture, Genpact, IBM Corporation, Oracle Corporation, Cognizant, Capgemini SE, and Tata Consultancy Services Limited.

Key Developments

  1. Key companies in the market are focused on business expansion, in order to enhance the market presence. For instance, in January 2017, Oracle announced a new expansion plan in the regions of North America and EMEA. This would double the regional presence of cloud platform of Oracle.
  2. Major players in the market are involved in contracts and agreements, in order to gain competitive edge in the market. For instance, in December 2019, Infosys Limited entered into a five-year contract Telenet Group, a Belgium-based telecom company, to build new digital and data capabilities

Share services refer to managing single or multiple business units by sharing resources and information among different business units of a company. In the other words Shared service is the provision of a service by one part of an organization where that service has been found in more than one part of the organization. Use of share services provides benefits which includes share services are cost-effective since they centralize back-office operations that are utilized by multiple divisions of the same company thereby minimizing the redundancy. Shared services are supported by IT and IT services and cater to requirements for diverse business units within the enterprise. Moreover, 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.

Market Dynamics

Growing importance of cost reduction in overall operations and resources is expected to drive the global shared service market in the forecast period. To remain competitive in the market company are reducing their product margin and to fill that gap company are trying to reduce the operation cost by sharing company’s resources across the companies various domains and regions. Sharing services can be achieved by centralized service which provides benefit includes Standardized services, accuracy, and timeliness, consolidation of the same tasks across lines of business and others. Therefore, increasing focus cost reduction is expected to drive the global shared services market growth over the forecast period.

However, increasing complexity of implementing sharing services and high implementing cost are these factors are expected to hamper the growth global shared services market over the forecast period. Sharing services requires modern infrastructure and highly skilled IT professionals to implement the shared services in the company. Due high investment SMEs are hesitating to adopt the shared services.

Market Taxonomy

This report segments the global shared services market on the basis of component, End-user,   deployment and region. On the basis of component, global shared services market is segmented into software and services and on the basic of services market is segmented into consulting, integration and maintenance. On the basis of end-user, the global shared services market is segmented into Banking, Financial services and Insurance (BFSI), Media and Entertainment, Manufacturing, Healthcare, IT and Telecom, Retail & Hospitality and Others. On the basis of deployment, the global shared services market is segmented into Cloud, On Premise. On the basis of region, global shared services market is segmented into North America, Latin America, Europe, Asia pacific, Middle East and Africa.

Key features of the study:

  • This report provides an in-depth analysis of the global shared services market and provides market size (US$ million) and compound annual growth rate (CAGR %) for the forecast period (2019-2027), considering 2018 as the base year
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrix for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, regional outlook, and competitive strategy adopted by leading players
  • It profiles leading players in the global shared services market based on the following parameters – regulatory landscape, company overview, financial performance, product portfolio, geographical presence, distribution strategies, key developments and strategies, and future plans
  • Key companies covered in the global shared services market includes Infosys Limited, SAP, HCL, EXL, Atos SE, Accenture, Genpact, IBM Corporation, Oracle Corporation, Cognizant, Capgemini SE, and Tata Consultancy Services Limited.
  • These key market players are focusing on collaboration strategy with other market leaders to innovate and launch new products to meet the increasing needs and requirements of consumers.
  • Insights from this report would allow marketers and management authorities of companies to make informed decision regarding future product launches, technology upgradation, market expansion, and marketing tactics
  • The global shared services market report caters to various stakeholders in this industry including investors, suppliers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through the various strategy matrices used in analyzing the global shared services market.

Detailed Segmentation:

  • Global Shared Services Market By Component
    • Software
    • Services
      • Consulting
      • Integration
      • Maintenance
  • Global Shared Services Market  By End-use
    • Banking, Financial services and Insurance (BFSI)
    • Media and Entertainment
    • Manufacturing
    • Healthcare
    • IT and Telecom
    • Retail & Hospitality
    • Others
  • Global Shared Services Market  By Deployment
    • Cloud
    • On Premise
  • Global Shared Services Market  By Region
    • North America
    • Europe
    • Asia-Pacific
    • Middle-East and Africa
    • Latin America
  • Company Profiles
    • Infosys Limited*
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments
      • Future Plans
    • SAP SE
    • HCL
    • EXL
    • Atos SE
    • Accenture
    • Genpact
    • IBM Corporation
    • Oracle Corporation
    • Cognizant
    • Capgemini SE
    • Tata Consultancy Services Limited.

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Table of Contents

  1. Research Objectives and Assumptions
    • Research Objectives
    • Assumptions
    • Abbreviations
  2. Market Purview
    • Report Description
      • Market Definition and Scope
    • Executive Summary
      • Market Snippet, By Component
      • Market Snippet, By End-use
      • Market Snippet, By Deployment
      • Market Snippet, By Region
    • Coherent Opportunity Map (COM)
  3. Market Dynamics, Regulations, and Trends Analysis
    • Market Dynamics
      • Drivers
      • Restraints
      • Market Opportunities
    • Regulatory Scenario
    • Industry Trend
    • Merger and Acquisitions
    • New system Launch/Approvals
  4. Global Shared Services Market, By Component, 2017-2027 (US$ Billion)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Software
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Billion)
    • Services
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Billion)
        • Consulting
        • Integration
        • Maintenance
  5. Global Shared Services Market, By End-use, 2017-2027 (US$ Billion)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Banking, Financial services and Insurance (BFSI)
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Billion)
    • Media and Entertainment
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Billion)
    • Manufacturing
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Billion)
    • Healthcare
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Billion)
    • IT and Telecom
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Billion)
    • Retail & Hospitality
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Billion)
    • Others
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Billion)
  6. Global Shared Services Market, By Deployment, 2017-2027  (US$ Billion)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Cloud
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Billion)
    • On Premise
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Billion)
  7. Global Shared Services Market, By Region, 2017-2027  (US$ Billion)
    • Introduction
      • Market Share Analysis, By Region, 2017 and 2027 (%)
    • North America
      • Regional Trends
      • Market Size and Forecast, By Component, 2019–2027 (US$ Billion)
      • Market Size and Forecast, By End-use, 2019–2027 (US$ Billion)
      • Market Size and Forecast, By Deployment, 2019–2027 (US$ Billion)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • U.S.
        • Canada
    • Europe
      • Regional Trends
      • Market Size and Forecast, By Component, 2019–2027 (US$ Billion)
      • Market Size and Forecast, By End-use, 2019–2027 (US$ Billion)
      • Market Size and Forecast, By Deployment, 2019–2027 (US$ Billion)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • U.K.
        • Germany
        • Italy
        • France
        • Russia
        • Rest of Europe
    • Asia Pacific
      • Regional Trends
      • Market Size and Forecast, By Component, 2019–2027 (US$ Billion)
      • Market Size and Forecast, By End-use, 2019–2027 (US$ Billion)
      • Market Size and Forecast, By Deployment, 2019–2027 (US$ Billion)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • China
        • India
        • Japan
        • ASEAN
        • Australia
        • South Korea
        • Rest of Asia Pacific
    • Latin America
      • Regional Trends
      • Market Size and Forecast, By Component, 2019–2027 (US$ Billion)
      • Market Size and Forecast, By End-use, 2019–2027 (US$ Billion)
      • Market Size and Forecast, By Deployment, 2019–2027 (US$ Billion)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • Brazil
        • Argentina
        • Mexico
        • Rest of Latin America
    • Middle East and Africa
      • Regional Trends
      • Market Size and Forecast, By Component, 2019–2027 (US$ Billion)
      • Market Size and Forecast, By End-use, 2019–2027 (US$ Billion)
      • Market Size and Forecast, By Deployment, 2019–2027 (US$ Billion)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • GCC Countries
        • South Africa
        • Rest of the Middle East and Africa
  8. Competitive Landscape
    • Company Profiles
      • Infosys Limited
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • SAP SE
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • HCL
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • EXL
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Atos SE
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Accenture
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Genpact
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • IBM Corporation
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Oracle Corporation
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Cognizant
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Capgemini SE
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Tata Consultancy Services Limited.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
  9. Section
    • References
    • Research Methodology
    • About us and Sales Contact

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