Shared Services Center Market

Growing demand for digital transformation is driving the market growth

Market CAGR for shared services center is growing due to the number of factors. Robotic process automation (RPA) and other digital technologies automate repetitive, rule-based procedures, which helps SSC increase efficiency, streamline operations, and minimize manual labor. Automation increases output, shortens cycle times for processes, and lets SSCs handle larger transaction volumes without adding more employees. To extract valuable insights from vast amounts of data, SSCs use predictive modeling, data visualization, and advanced analytics techniques.

Industry trends for shared services centers (SSCs) point to a rapidly expanding global presence. Demand for SSCs is rising across numerous nations, according to polls carried out by top firms. It's common to see the integration of cutting-edge technology like automation and artificial intelligence with an emphasis on improving customer experience. Businesses are using SSCs more and more to increase productivity and streamline processes. The information gathered from these surveys highlights the increasing acceptance of shared services as a strategic business model, indicating a paradigm shift in organizational dynamics in a variety of international marketplaces.

For instance, according to a Deloitte report from August 2023, India surpassed Poland and Mexico to become the top location for shared services globally. The research predicted that India would see rapid expansion, with over 1,900 global capability centers (GCCs) opening up, employing two million people, and bringing in an astounding $60 billion annually. India, one of the top service exporters in the world, was well-positioned to strengthen its reputation internationally by building more shared service centers, which would increase its economic might and influence in global trade.

Thus driving the Shared Services Center market revenue.

The Global Shared Services Center Market Industry is poised for substantial growth, with projections indicating a market value of 68.7 USD Billion in 2024 and an anticipated increase to 514.4 USD Billion by 2035. This growth trajectory reflects a compound annual growth rate of 20.08 percent from 2025 to 2035, driven by various factors such as technological advancements, globalization, and the increasing demand for cost efficiency. These metrics underscore the evolving landscape of shared services, highlighting its critical role in modern business operations.

Organizations increasingly prioritize their core competencies, leading to a surge in the Global Shared Services Center Market Industry. By outsourcing non-core functions to shared service centers, companies can concentrate on strategic initiatives that drive growth and innovation. This approach not only enhances operational efficiency but also allows businesses to allocate resources more effectively. For instance, firms that adopt this model often report improved customer satisfaction and faster time-to-market for new products. The ongoing shift towards this strategic focus is expected to sustain market growth, with a valuation of 68.7 USD Billion in 2024.

Technological innovations play a pivotal role in the Global Shared Services Center Market Industry. The integration of advanced technologies such as artificial intelligence, machine learning, and automation enhances service delivery and operational efficiency. These technologies enable organizations to process data more rapidly and accurately, thus improving decision-making. For example, companies utilizing AI-driven analytics can achieve a 20 percent increase in productivity. As the market evolves, the adoption of these technologies is expected to propel growth, contributing to a projected market value of 514.4 USD Billion by 2035.

The globalization of business operations significantly influences the Global Shared Services Center Market Industry. As companies expand their footprint across borders, the need for standardized processes and centralized services becomes paramount. Shared services facilitate seamless communication and collaboration among geographically dispersed teams. This trend is especially prevalent in multinational corporations that require consistent service delivery across various regions. The market's growth reflects this shift, with a compound annual growth rate of 20.08 percent anticipated from 2025 to 2035, underscoring the importance of shared services in a globalized economy.

The Global Shared Services Center Market Industry experiences heightened demand for cost efficiency as organizations seek to streamline operations. By consolidating services, companies can reduce operational costs significantly. For instance, businesses that implement shared services report savings of up to 30 percent in administrative costs. This trend is particularly evident in sectors such as finance and human resources, where repetitive tasks can be centralized. As of 2024, the market is valued at 68.7 USD Billion, indicating a robust growth trajectory driven by the need for financial prudence and operational efficiency.

The necessity for regulatory compliance and effective risk management is a critical driver in the Global Shared Services Center Market Industry. Organizations face increasing scrutiny from regulatory bodies, necessitating robust compliance frameworks. Shared services can streamline compliance processes, ensuring adherence to local and international regulations. For example, financial institutions leveraging shared services for compliance reporting can reduce the risk of penalties and enhance their reputation. As the market evolves, the emphasis on compliance and risk management is likely to contribute to its growth, with projections indicating a market value of 514.4 USD Billion by 2035.

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Shared Services Center market will dominate this market. Owing to the expanding government initiatives to promote shared services, close service gaps, and improve regional cooperation. Through cooperative services, these initiatives seek to advance community sustainability and vibrancy, supporting a feasible market upsurge. To address service shortages and improve community capacity through collaborative, shared services activities, the U.S. Department of Municipal and Provincial Affairs, for example, launched the Community Collaboration Grants initiative in September 2023.

These cooperative service projects support industries like recreation centers, emergency response, economic development, and others by providing grants of up to USD 100,000.

Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: SHARED SERVICES CENTER MARKET SHARE BY REGION 2023 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe's Shared Services Center market accounts for the second-largest market share. The expansion is attributed to the presence of a proficient workforce, extensive linguistic proficiency, and proximity to Western Europe both geographically and culturally. Additionally, the area is home to a large number of prestigious universities, providing access to a competent talent pool. Cities in East Europe compete with one another to draw investment for newly established or growing SSCs, and important variables, including infrastructure, labor costs, and population availability, determine their appeal.

First-tier and capital cities like Bratislava, Budapest, and Warsaw have lost some of their appeal to second-tier cities as a result of this rivalry. Further, the German Shared Services Center market held the largest market share, and the UK Shared Services Center market was the fastest-growing market in the European region.

The Asia-Pacific Shared Services Center Market is expected to grow at the fastest CAGR from 2024 to 2032. The region's large pool of young English-speaking professionals, comparatively inexpensive wages, and low infrastructure expenses are some of the factors contributing to this rise. The region's cultural homogeneity, together with low labor and infrastructure costs in nations like China, Singapore, and India, could encourage the growth of SSCs. Moreover, China’s Shared Services Center market held the largest market share, and the Indian Shared Services Center market was the fastest-growing market in the Asia-Pacific region.

The Shared Services Center market will continue to grow due to major companies in the industry making significant R&D investments to extend their product ranges. Significant market developments include new product releases, contractual agreements, mergers and acquisitions, greater investments, and cooperation with other organizations. Market participants also engage in various strategic actions to broaden their global footprint. The Shared Services Center sector must provide affordable products & services to grow and thrive in a more cutthroat and dynamic market.

One of the main strategies manufacturers use in the worldwide Shared Services Center market is local manufacturing, which expands the market sector and helps customers by lowering operating costs. Some of the biggest medical benefits in recent years have come from the Shared Services Center sector. Major players in the Shared Services Center market, including Accenture plc, Genpact Ltd., Deloitte Touche Tohmatsu Limited, Tata Consultancy Services Limited, WNS (Holdings) Ltd., CGI, Inc, Capgemini SE, Infosys Limited, EXLService Holdings, Inc., International Business Machines Corporation, and others, are engaging in research and development activities in an effort to boost market demand.

Information technology (IT) services are offered by Tata Consultancy Services Ltd (TCS), a subsidiary of Tata Sons Pvt Ltd. Cloud services, quality engineering, blockchain, enterprise solutions, IoT, business intelligence, business process outsourcing, and consultancy services are all provided by the company in addition to IT infrastructure services. Additionally, it provides business solutions to a range of industries, such as retail, manufacturing, information services, banking, financial services, banking media, technology, insurance, healthcare, life sciences, and education.

TCS Optumera, TCS OmniStore, TCS ADD, TCS HOBS, Quartz, Jile, TCS MasterCraft, TCS BaNCS, Ignio, TAP, TCS iON, and TCS TwinX are among its software offerings. The global IT outsourcing company Tata Consultancy Services, with its headquarters in India, announced on January 17, 2023, the release of TCS Finance and the Shared Services Transformation suite, which will enable companies everywhere to leverage shared services and boost productivity.

Accenture Plc offers services and solutions in the areas of strategy, consulting, digital, technology, and operations. The business manages business operations for enterprise functions, including supply chain, marketing, sales, finance and accounting, and sourcing and procurement. In addition, it provides services unique to the industry, such as banking, insurance, health services, and platform trust and safety. The corporation provides services to the following industries: communications, media and technology, agribusiness, automotive, finance, capital markets, retail, travel, health, and chemicals. Accenture plc. It acquired Nautilus Consulting in September 2023.

As a result of the growing effects of healthcare digitization, Nautilus Consulting specializes in electronic patient record solutions. This is similar to the shared services center trend in the industry, wherein industries such as healthcare concentrate on supporting operations to increase productivity. Accenture's move highlights the need for digital healthcare expertise and propels market expansion to address industry-specific requirements.