Global Shared Services Centers: Opportunities and Challenges

Shared services centers have become increasingly popular in recent years as companies look for ways to streamline their operations and reduce costs. These centers are typically centralized locations where a company’s back-office functions, such as finance, human resources, and IT, are consolidated and managed. The global shared services market is expected to grow at a CAGR of 14.6% from 2020 to 2027, reaching a value of $144.2 billion by the end of the forecast period. This article will provide an overview of the opportunities and challenges facing the global shared services market.

Overview

The global shared services market is driven by several factors, including the need for cost reduction, increased efficiency, and improved service quality. Companies are increasingly looking to consolidate their back-office functions to reduce duplication and improve standardization. Shared services centers can also provide access to specialized skills and expertise that may not be available in-house.

The market is segmented by function, industry, and geography. The most common functions served by shared services centers include finance and accounting, human resources, IT, and procurement. The industry verticals that are most likely to adopt shared services include healthcare, BFSI, retail, and manufacturing. Geographically, North America and Europe are the largest markets for shared services, but the Asia-Pacific region is expected to grow at the highest rate due to the increasing adoption of shared services by companies in the region.

Key Players in the Global Shared Services Centers: Opportunities and Challenges

The global shared services market is highly competitive, with several key players dominating the market. Some of the leading players in the market include Accenture, Capgemini, Deloitte, IBM, Infosys, KPMG, and Wipro. These companies offer a range of services, including consulting, implementation, and managed services. They also have a strong presence in multiple geographies and industries.

Market Challenges

Despite the many benefits of shared services, there are also several challenges that companies may face when implementing a shared services model. One of the biggest challenges is the resistance to change from employees who may be used to working in a decentralized environment. This can lead to a lack of buy-in and adoption of the shared services model, which can impact the success of the initiative.

Another challenge is the need for significant upfront investment in technology and infrastructure. Companies must be willing to invest in the necessary systems and processes to support a shared services model, which can be a significant financial burden. Additionally, companies must ensure that they have the right talent in place to manage the shared services center and provide the necessary support to the business.

Market Opportunities

Despite the challenges, there are also many opportunities for companies that adopt a shared services model. One of the biggest opportunities is the potential for cost savings. By consolidating back-office functions, companies can reduce duplication and improve efficiency, which can lead to significant cost savings over time.

Shared services centers can also provide access to specialized skills and expertise that may not be available in-house. This can help companies to improve the quality of their services and support the business more effectively. Additionally, shared services can help to improve standardization and consistency across the organization, which can lead to better decision-making and improved performance.

Future of

The future of the global shared services market looks bright, with continued growth expected in the coming years. The increasing adoption of shared services by companies in the Asia-Pacific region is expected to be a key driver of growth, as is the growing trend towards digitalization and automation. Companies are increasingly looking to leverage technology to improve efficiency and reduce costs, and shared services centers are well-positioned to support this trend.

However, companies must also be prepared to adapt to changing market conditions and evolving customer needs. The global shared services market is highly competitive, and companies must be willing to invest in the necessary technology, talent, and infrastructure to remain competitive.

Conclusion

The global shared services market offers many opportunities for companies looking to streamline their operations and reduce costs. However, there are also several challenges that must be overcome, including resistance to change and the need for significant upfront investment. Companies that are willing to invest in the necessary technology, talent, and infrastructure can reap the benefits of shared services, including cost savings, improved efficiency, and access to specialized skills and expertise.