North America Emerging as One of the Prominent Regions in the Shared Services Market
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| Shared Services Market |
The global Shared Services Market is estimated to be valued at US$ 41.37 Bn in 2022 and is expected to exhibit a CAGR of 23.1% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Shared services are business functions that provide support services to internal groups or business units within an organization rather than being dedicated to a single division or department. Shared services help in reducing operating costs and improving responsiveness. They provide services like finance and accounting, HR, procurement, supply chain management and information technology support.
Market Key Trends:
One of the key trends in the shared services market is the adoption of cloud-based shared services. The cloud-based deployment model enables enterprises to access shared services from anywhere, anytime via the internet. It offers scalability, flexibility and lower upfront costs compared to on-premise deployments. Various shared services such as finance & accounting, human resource management and supply chain management are being increasingly offered over the cloud. This is expected to drive the demand for cloud-based shared services during the forecast period.
Segment Analysis:
The global shared services market is segmented on the basis of service type, organization size, vertical, and region. Based on service type, the shared services market is segmented into finance & accounting, human resources, supply chain management, and information technology. The finance & accounting segment is expected to dominate the market over the forecast period. This is due to the increasing adoption of shared services in finance and accounting functions to reduce operational costs and gain financial and strategic benefits.
Key Takeaways:
The global Shared Services Market Segmentation is expected to witness high growth, exhibiting a CAGR of 23.1% over the forecast period, due to the increasing need to gain centralized control over business processes and achieve economies of scale.
The North America region is expected to be the fastest growing as well as the dominating region in the global shared services market. This is attributed to advancements in technologies, presence of key players, and early adoption of shared services in the region.
Key players operating in the 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 and Others. These players are focusing on various business strategies like mergers & acquisitions, expansion of service offerings, inauguration of new service centers and others for strengthening their market presence globally. For instance, in 2020, Tata Consultancy Services acquired Postbank Systems AG to expand its shared services portfolio and enhance its capabilities to serve German and European markets.
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