This market study presents a detailed segmentation of the global shared services market by function (finance and accounts (F&A), human resource (HR), supply chain management (SCM), information technology (IT), and customer relationship management (CRM)) and by geography (the Americas, APAC, and EMEA). It also analyzes the key market vendors and their market shares, including Accenture, Cognizant, IBM, Infosys, and TCS.
Technavio’s market research analysts estimate the global shared services market to grow at a CAGR of around 14% between 2016 and 2020. The global market for shared services will grow at a significant rate during the forecast period and will be positively affected by the recent increase in the number of shared services deals across the public and private sectors. Factors such as cost reduction and location proximity to client firms will compel enterprises in the public and private sectors to adopt shared services as it will help to save approximately 30% of employee and administrative costs. The Americas dominates the shared services outsourcing market, accounting for 42% of the total market share. The ability of shared services to provide IT services for the facilitation of next generation technology adoption across industries is a critical factor that will result in this market’s impressive growth in the Americas.
The new market research report from Technavio provides a breakdown and analysis of the shared services segments by technology.
“One of the latest trends gaining prominence in this market is the growing need for process automation. Process automation is an important component of business transformation at a functional level as it reduces manual work and increases process efficiencies. The ability of automated processes to reduce redundancy and errors in the transactional processes will result in its augmented adoption during the forecast period,” says Amit Sharma, Lead Analyst, ICT, Technavio Research
The F&A segment is the largest market segment, accounting for approximately 27% of the total market share. The rising need to meet the regulatory and compliance requirements will impel the adoption of shared services in the F&A sector during the forecast period. Also, factors such as the growing implementation of shared services for the standardization and transformation of financial processes will also aid in the growth of this market segment during the predicted period.
The leading vendors in the global shared services market are Accenture, Cognizant, IBM, Infosys, and TCS. The market 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. The vendors are also focusing on emerging markets to avail numerous contracts from industry verticals like manufacturing, healthcare, and automotive.
A more detailed analysis is available in the Technavio report, Global Shared Services Market 2016-2020.
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