Shared Services Market Driven by Demand for Cost Optimization and Work Enhancement
Shared services aim to consolidate common back-office functions like finance, accounting, procurement, supply chain, and human resources into centralized organizations that are meant to serve internal customers through standardized processes and shared services delivery models. By streamlining operations and reducing redundancies, shared services optimize costs for companies. They also enhance work by promoting collaboration and transparency across organizational divisions through shared platforms and systems. The shared services market includes multi-function devices like all-in-one printers, scanners, copiers that facilitate document handling and processing capabilities required across shared services units.
The global Shared Services Market is estimated to be valued at US$ 162.48 Mn in 2024 and is expected to exhibit a CAGR of 8.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The flexibility and scalability of cloud models have made them particularly appealing to organizations pursuing shared services strategies. Transition towards cloud is expected to continue shaping the shared services market over the coming years.
Porter's Analysis
Threat of new entrants: The threat of new entrants in the shared services market is moderate. Establishing shared service centers require significant upfront investments and specialized skillsets.
Bargaining power of buyers: The bargaining power of buyers in the shared services market is high. Buyers have a choice of in-house capabilities or multiple shared services providers.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. Specialized service providers have some pricing power due to their expertise and economies of scale.
Threat of new substitutes: The threat of new substitutes is moderate. In-house capabilities continue to be a substitute though shared services offer cost and scalability benefits.
Competitive rivalry: The shared services market sees intense competition among existing providers on the basis of pricing, quality of services and contracts.
Key Takeaways
The Global Shared Services Market Size is expected to witness high growth over the forecast period supported by cost optimisation benefits and technological advancements. The global Shared Services Market is estimated to be valued at US$ 162.48 Mn in 2024 and is expected to exhibit a CAGR of 8.3% over the forecast period 2023 to 2030.
North America currently dominates the market due to significant adoption by enterprises to enhance operational efficiencies. The Asia Pacific region is expected to show high growth in the shared services market supported by rapid digitization and industrialization in countries such as China, India and Japan. Enterprises are leveraging shared services to optimize resources and focus on their core offerings.
Key players operating in the shared services market are Dell Inc., Curtiss-Wright Corp., Getac Technology Corp., General Dynamics Corp., Zebra Technologies Corp., L3 Technologies Inc., Panasonic Corporation, Scio Teq, Sparton Corp., Crystal Group Inc., Kyocera Corp., and Beijer Electronics Group AB. These players are focusing on partnerships, acquisitions and new service launches to stay ahead of the competition and capitalize on growth opportunities.
For more Insights, Read –
https://www.marketwebjournal.com/shared-services-market-size-market-share-analysis/
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