Shared Services: Key market research findings
- Need for process automation to impel market growth
- The Americas to be the largest market
- Key vendors – Accenture, Cognizant, IBM, Infosys, and TCS
Technavio’s market research analysts expect the shared services market to grow impressively at a CAGR of over 14% by 2020. Process automation is an important component of business transformation at a functional level as it reduces manual work and increases process efficiencies. Automation in processes help to reduce redundancy and errors in the transactional processes and brings about a reduction in the number of manual steps required in the finance, HR, and supply chain processes through data accuracy and consistency. Its ability to enhance the efficiency of operational processes will lead to the augmented demand for shared services for faster and high-quality service delivery systems. In terms of geography, the Americas dominated this market and accounted for almost 43% of the total market share during 2015. The high preference for shared services across sectors like manufacturing, healthcare, and oil and gas to enhance quality and service delivery systems will result in the strong growth of the market in the Americas.
The new market research report from Technavio presents a breakdown and analysis of the shared services segments based on function.
“At present, it has been observed that firms from across the globe have started adopting analytics services to transform unstructured data into structured data to get meaningful insights. This data is analyzed using advanced analytical tools to understand the pattern related to business and consumer behavior. Analytical tools have been helping numerous industries, such as BFSI, telecommunications, and healthcare, to take key decisions at organizational levels,” says Amit Sharma, Lead Analyst, ICT, Technavio Research.
In 2015, the finance and accounts segment dominated this market and accounted for a market share of approximately 27%. The adoption of shared services in this sector is high as chief financial officers (CFOs) face intense business challenges in terms of managing accounts receivables, accounts payables, and other transactional processes. Due to such challenges, organizations have started adopting shared services for the standardization and transformation of finance processes in pursuit of economies of scale.
The global market for shared services is characterized by the presence of intense competition as numerous vendors are offering similar shared services with very few differentiations in terms of service offerings. To thrive in this market, the vendors are competing to win contracts from governments for shared services. Accenture, Cognizant, IBM, Infosys, and TCS are the key players in this market space.
A more detailed analysis is available in the Technavio report, Global Shared Services Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
Other related reports:
