Shared Services

Shared Services Market Outlook

The global shared services market was valued at approximately USD 650 billion in 2025 and is projected to expand at a compound annual growth rate (CAGR) of 13% through 2035. This growth is primarily driven by the rising demand for operational efficiencies across various sectors, the increasing focus on cost reduction, and the need for enhanced service delivery models. In an era characterized by digital transformation, organizations are increasingly adopting shared services as a strategic approach to streamline their processes and optimize resource allocation. Furthermore, advancements in technology, particularly in automation and artificial intelligence, are facilitating the transition towards shared services, enabling organizations to deliver high-quality services while minimizing overhead costs. As companies continue to seek innovative solutions to improve productivity and enhance customer experience, the shared services market is expected to thrive in the coming years.

Growth Factor of the Market

The growth of the shared services market is significantly influenced by various factors that enhance its adoption within organizations. One of the primary growth drivers is the increasing complexity of operations across various industries, which has necessitated the need for centralized services. By consolidating functions such as finance, HR, IT, and customer service, organizations can achieve economies of scale and improved service quality. Additionally, the rise of cloud computing has played a crucial role in facilitating shared services, allowing organizations to access and share resources efficiently without the burden of maintaining extensive on-premises infrastructure. Moreover, the growing emphasis on data-driven decision-making has increased the requirement for centralized data management and analytics capabilities. As organizations realize the strategic benefits of shared services, including enhanced agility and faster response times, the overall market is poised for significant growth. Finally, the ongoing emergence of innovative technologies such as robotic process automation (RPA) and artificial intelligence (AI) is transforming the landscape of shared services, making them more efficient and effective.

Key Highlights of the Market

• Projected CAGR of 13% from 2025 to 2035 indicates strong market growth potential.
• Finance & Accounting services hold the largest share within the service type segment.
• Large enterprises are the key adopters of shared services, driven by their complex operational requirements.
• The BFSI sector is expected to witness the highest demand for shared services due to regulatory requirements.
• North America leads the market, accounting for a significant portion of the global share due to technological advancements.

By Service Type

Finance & Accounting:

Finance and accounting services are among the most substantial segments within the shared services market, reflecting the critical need for organizations to streamline financial processes. These services encompass a range of functions, including accounts payable, accounts receivable, payroll processing, tax compliance, and financial reporting. Organizations benefit from shared finance and accounting services through cost reduction, improved accuracy in financial data, and enhanced compliance with regulatory frameworks. Furthermore, the automation of routine financial tasks allows finance teams to focus on strategic analysis rather than transactional processing, thereby adding more value to the organization. As companies increasingly move toward data-driven decision-making, the demand for precise financial insights is expected to propel the growth of shared finance and accounting services.

Human Resources:

The human resources segment of the shared services market is characterized by the pressing need for organizations to manage their workforce efficiently. With functions ranging from recruitment and onboarding to employee benefits and payroll administration, the shared services approach allows organizations to consolidate HR operations and provide consistent employee experiences. By leveraging shared HR services, companies can improve their talent acquisition processes, streamline employee onboarding, and enhance overall employee engagement. Additionally, shared HR services promote compliance with labor laws and regulations, reducing the risk of legal penalties. As organizations strive to foster a more agile workforce capable of adapting to changing market demands, the shared HR service model is expected to gain further traction.

Information Technology:

Information technology shared services represent a crucial component of the overall shared services market, driven by the increasing reliance on technology in business operations. Through centralized IT support, organizations can streamline service delivery, reduce operational costs, and enhance the quality of IT services provided to internal stakeholders. IT shared services encompass a variety of functions, including help desk support, application management, infrastructure management, and cybersecurity. The rapid advancement of technology, coupled with the growing complexity of IT environments, has led organizations to adopt shared IT services as a means of ensuring system reliability and security. Furthermore, the increasing importance of digital transformation initiatives is expected to further accelerate the demand for shared IT services.

Customer Services:

Customer service is a vital area where shared services can significantly impact an organization’s growth and sustainability. By centralizing customer service functions, businesses can ensure that they provide consistent and high-quality support to their clients. This segment includes various functions such as call center operations, customer relationship management, and technical support. Shared customer service models allow organizations to improve response times and customer satisfaction levels while simultaneously reducing costs associated with maintaining multiple service points. The ability to leverage data analytics to gain insights from customer interactions enhances the decision-making process and helps organizations tailor their offerings to meet customer needs better. As organizations prioritize customer experience as a key differentiator in competitive markets, the demand for shared customer services is anticipated to increase.

Procurement:

Procurement shared services are essential for organizations looking to optimize their purchasing processes and manage supply chain risks effectively. By consolidating procurement functions, businesses can achieve economies of scale, negotiate better contracts, and streamline vendor management. Shared procurement services encompass activities like sourcing, purchasing, and contract management, which are crucial for driving cost efficiency and operational effectiveness. Through the adoption of shared services, organizations can gain better visibility into their spending patterns, enhance compliance with procurement policies, and improve supplier relationships. As companies continue to focus on cost reduction and risk management, the procurement shared services segment is expected to experience robust growth in the shared services market.

By Organization Size

Small & Medium Enterprises:

Small and medium enterprises (SMEs) play an increasingly vital role in the shared services market, as they seek solutions that enable them to remain competitive without overextending their resources. Shared services offer SMEs the ability to access advanced capabilities and operational efficiencies typically associated with larger organizations while maintaining lower overhead costs. By adopting shared services, SMEs can streamline operations in key areas such as finance, HR, and customer service, allowing them to focus on core business activities and innovation. Additionally, as SMEs often face resource constraints, shared services provide them with scalable solutions that can grow alongside their business needs. The increasing uptake of digital technologies among SMEs is likely to propel the demand for shared services tailored to their specific requirements.

Large Enterprises:

Large enterprises are the primary drivers of the shared services market due to their complex operational structures and extensive resource requirements. These organizations often face significant challenges in managing multiple functions across various geographical locations, making shared services an ideal solution to centralize and streamline operations. By implementing shared services, large enterprises can achieve significant cost savings, improve service delivery, and enhance collaboration across departments. Given their scale and diversity, large enterprises are also well-positioned to leverage advanced technologies such as automation and artificial intelligence, which can further optimize shared service operations. As large organizations continue to seek ways to enhance their competitiveness and operational efficiencies, the shared services model remains a strategic choice.

By Industry Vertical

BFSI:

The banking, financial services, and insurance (BFSI) sector represents one of the largest adopters of shared services, driven by regulatory compliance requirements and the need for efficient operations. Shared services in the BFSI sector encompass various functions, including accounting, risk management, and customer service. The sector's emphasis on data security and compliance necessitates a centralized approach to managing sensitive information. By implementing shared services, BFSI organizations can ensure that they adhere to stringent regulatory standards while also improving customer service delivery. Furthermore, as the industry undergoes digital transformation, shared services facilitate the integration of advanced technologies, allowing for more efficient processes and enhanced decision-making capabilities.

Healthcare:

In the healthcare sector, shared services are increasingly being adopted as a means to improve operational efficiency and enhance patient care. By consolidating functions such as billing, human resources, and IT support, healthcare organizations can reduce costs and streamline processes, ultimately benefiting patient outcomes. The shared services model allows healthcare providers to focus on core competencies such as patient care while ensuring that administrative functions are managed effectively. Additionally, as regulatory requirements in healthcare become more complex, shared services provide a structured approach to compliance and reporting. The emphasis on patient-centric care and the push for enhanced operational efficiencies are expected to drive further adoption of shared services in this vital industry.

IT & Telecom:

The IT and telecom industry is experiencing a significant shift towards shared services as organizations seek efficiencies and improved service delivery in an increasingly competitive market. Shared services in this sector often involve centralized IT support functions, network management, and customer service operations. By adopting a shared services model, IT and telecom providers can improve resource utilization, reduce costs, and enhance customer satisfaction through faster response times and consistent service quality. Furthermore, as digital transformation initiatives gain momentum across industries, the demand for agile and responsive IT and telecom services is expected to grow, driving the adoption of shared services within this sector.

Manufacturing:

The manufacturing sector is increasingly recognizing the value of shared services as a means to optimize operations and drive cost efficiencies. By consolidating functions such as supply chain management, procurement, and finance, manufacturing organizations can streamline processes and enhance collaboration across departments. Shared services facilitate better visibility into operations, enabling manufacturers to make data-driven decisions that improve operational performance and reduce waste. As industries continue to face challenges related to global competition and rising costs, the shared services model is expected to play a critical role in helping manufacturers remain competitive and agile in their operations.

Retail:

The retail industry is undergoing significant transformation, with shared services being recognized as a strategic approach to enhance operational efficiency and improve customer experiences. Retail organizations often face challenges related to inventory management, supply chain coordination, and customer service, making shared services an attractive solution to streamline operations. By centralizing functions such as order processing, customer support, and HR, retailers can improve service delivery and reduce operational costs. As the retail landscape continues to evolve with the rise of e-commerce and changing consumer preferences, shared services can provide the agility and scalability required to meet market demands effectively.

By Delivery Model

Onshore:

The onshore delivery model involves providing shared services within the same country as the organization, allowing for closer collaboration and communication between teams. This model is particularly beneficial for companies that prefer to maintain control over their operations while ensuring compliance with local regulations and standards. The onshore model also facilitates better alignment with organizational culture and values, as employees are more likely to share similar backgrounds and experiences. This approach is often favored by industries such as healthcare and financial services, where data security and regulatory compliance are critical. However, the onshore model may come with higher operational costs compared to offshore options, which organizations must weigh carefully when considering their shared services strategy.

Offshore:

The offshore delivery model denotes the provision of shared services from locations outside the organization's home country, typically in regions with lower labor costs. Offshore shared services have become increasingly popular as organizations seek to reduce overhead expenses while maintaining service quality. This model allows businesses to tap into a global talent pool and leverage specialized skills that may not be readily available in their home markets. Industries such as IT, finance, and customer service frequently adopt offshore shared services to enhance operational efficiencies. However, companies must address challenges related to cultural differences, time zone variations, and communication barriers to ensure successful implementation and execution of offshore shared services.

Nearshore:

The nearshore delivery model combines elements of both onshore and offshore services by leveraging resources from nearby countries. This approach allows organizations to maintain closer geographic proximity while benefiting from cost efficiencies associated with offshore locations. Nearshore shared services facilitate improved communication, collaboration, and cultural alignment, as teams are often located in similar time zones and share common languages. This model is particularly advantageous for businesses in industries such as technology and manufacturing, which require seamless integration between teams. By adopting the nearshore model, organizations can achieve a balance between cost savings and operational effectiveness, ultimately enhancing service delivery and customer satisfaction.

By Region

The shared services market is witnessing significant regional variations, influenced by factors such as economic development, technological advancements, and industry needs. North America is currently the leading market, accounting for approximately 40% of the global share. The region's dominance can be attributed to the presence of major corporations, advanced infrastructure, and a strong focus on digital transformation initiatives. The CAGR for the North American shared services market is projected to be around 12% through 2035, driven by ongoing investments in technology and the growing need for operational efficiencies. Companies in this region are increasingly adopting shared services to optimize their operations, enhance customer experiences, and maintain a competitive edge in their respective industries.

In Europe, the shared services market is expected to register robust growth rates, driven by the region's emphasis on regulatory compliance and operational efficiency. As organizations in countries like Germany, the UK, and France seek to streamline their processes and reduce costs, shared services are becoming an attractive solution. The European market is expected to account for approximately 30% of the global share, with a projected CAGR of 11% during the same period. Factors such as the rise of digital technologies, evolving workforce dynamics, and the need for greater collaboration across functions are likely to propel the adoption of shared services across various industries in the region. In contrast, the Asia Pacific region is emerging as a potential growth hotspot, driven by the rapid industrialization and technological advancements in countries like India and China.

Opportunities

As the shared services market continues to evolve, numerous opportunities arise for organizations seeking to harness its benefits. One of the most prominent opportunities lies in the integration of advanced technologies such as artificial intelligence (AI) and robotic process automation (RPA) within shared services. By implementing these technologies, organizations can automate routine tasks, improve service delivery, and enhance overall operational efficiencies. This technological shift not only reduces human error but also allows employees to focus on higher-value activities, ultimately driving innovation and productivity within the organization. Furthermore, as businesses increasingly prioritize customer experience, shared services can be tailored to enhance responsiveness and service quality, providing a competitive advantage in the market.

Another significant opportunity within the shared services market is the growing trend of digital transformation and the shift to cloud-based solutions. Organizations across industries are transitioning to cloud platforms to improve accessibility, scalability, and collaboration. This shift paves the way for the development of innovative shared services models that leverage cloud technologies, enabling organizations to optimize their operations further. Additionally, the expansion of shared services in emerging markets presents a wealth of opportunities, as companies in these regions seek to modernize their operations and improve efficiency. By considering these factors, organizations can position themselves strategically to capitalize on the opportunities presented by the evolving shared services landscape.

Threats

Despite the numerous opportunities available in the shared services market, organizations must also navigate various threats that could impede their progress. One of the primary threats is the potential for data security breaches and compliance challenges, especially for industries that handle sensitive information, such as BFSI and healthcare. As organizations increasingly rely on shared services, they must implement stringent security measures to safeguard their data and maintain compliance with regulatory requirements. The failure to do so could result in severe reputational damage, loss of customer trust, and significant financial penalties. Moreover, the rapid pace of technological change poses a threat to organizations that may struggle to keep up with the latest advancements, leading to operational inefficiencies or missed opportunities for innovation.

Another concern for organizations in the shared services market is the potential for resistance to change from employees. As organizations transition to shared services models, employees may experience anxiety regarding job security, changes in roles, and new working environments. This resistance can lead to decreased morale, productivity, and ultimately impact the success of shared services initiatives. Organizations must proactively address these concerns by fostering a culture of collaboration, providing training and development opportunities, and emphasizing the benefits of shared services to ensure smooth transitions and successful implementations.

Competitor Outlook

• Accenture
• Deloitte
• Capgemini
• IBM
• Genpact
• Tata Consultancy Services (TCS)
• Infosys
• Wipro
• DXC Technology
• CGI Group
• HCL Technologies
• Ernst & Young (EY)
• KPMG
• Atos
• Tech Mahindra

The competitive landscape of the shared services market is characterized by the presence of numerous established players and emerging companies. Major firms such as Accenture, Deloitte, and Capgemini are leading the way, leveraging their extensive expertise and technological capabilities to offer a wide range of shared services solutions. These companies have invested heavily in developing innovative technologies, such as artificial intelligence and automation, to enhance their service offerings and deliver superior value to clients. The competition is further intensified by the entry of new players who are looking to carve out a niche by focusing on specialized services or targeting specific industry verticals. As the shared services market continues to evolve, organizations will need to differentiate themselves through unique value propositions and a strong focus on customer-centric solutions.

Among the leading competitors, IBM stands out due to its strong emphasis on technology-driven shared services. The company has developed a suite of solutions that integrate artificial intelligence and automation to optimize service delivery across various functions. IBM's focus on innovation and digital transformation enables them to provide organizations with the tools necessary to enhance operational efficiencies and drive business outcomes. Similarly, Genpact has established a strong presence in the market by specializing in data analytics and process optimization, allowing companies to make more informed decisions and streamline their operations. With an extensive portfolio of shared services, these companies are well-positioned to capitalize on the growing demand for shared services across industries.

Other notable players in the shared services market include Tata Consultancy Services (TCS), Infosys, and Wipro, which have built robust capabilities in IT and business process outsourcing. These companies utilize their global delivery models to provide cost-effective shared services solutions while maintaining high-quality standards. TCS, for instance, has leveraged its extensive experience in managing large-scale operations to deliver end-to-end shared services that cater to diverse client needs. Additionally, firms like HCL Technologies and DXC Technology are focusing on digital transformation initiatives, helping organizations adopt cloud-based shared services models that enhance flexibility and scalability. As the competitive landscape continues to change, companies must remain agile and responsive to market trends to sustain their growth and success.

• 1 Appendix

  • 1.1 List of Tables
  • 1.2 List of Figures

• 2 Introduction

  • 2.1 Market Definition
  • 2.2 Scope of the Report
  • 2.3 Study Assumptions
  • 2.4 Base Currency & Forecast Periods

• 3 Market Dynamics

  • 3.1 Market Growth Factors
  • 3.2 Economic & Global Events
  • 3.3 Innovation Trends
  • 3.4 Supply Chain Analysis

• 4 Consumer Behavior

  • 4.1 Market Trends
  • 4.2 Pricing Analysis
  • 4.3 Buyer Insights

• 5 Key Player Profiles

  • 5.1 IBM
    • 5.1.1 Business Overview
    • 5.1.2 Products & Services
    • 5.1.3 Financials
    • 5.1.4 Recent Developments
    • 5.1.5 SWOT Analysis
  • 5.2 Atos
    • 5.2.1 Business Overview
    • 5.2.2 Products & Services
    • 5.2.3 Financials
    • 5.2.4 Recent Developments
    • 5.2.5 SWOT Analysis
  • 5.3 KPMG
    • 5.3.1 Business Overview
    • 5.3.2 Products & Services
    • 5.3.3 Financials
    • 5.3.4 Recent Developments
    • 5.3.5 SWOT Analysis
  • 5.4 Wipro
    • 5.4.1 Business Overview
    • 5.4.2 Products & Services
    • 5.4.3 Financials
    • 5.4.4 Recent Developments
    • 5.4.5 SWOT Analysis
  • 5.5 Genpact
    • 5.5.1 Business Overview
    • 5.5.2 Products & Services
    • 5.5.3 Financials
    • 5.5.4 Recent Developments
    • 5.5.5 SWOT Analysis
  • 5.6 Infosys
    • 5.6.1 Business Overview
    • 5.6.2 Products & Services
    • 5.6.3 Financials
    • 5.6.4 Recent Developments
    • 5.6.5 SWOT Analysis
  • 5.7 Deloitte
    • 5.7.1 Business Overview
    • 5.7.2 Products & Services
    • 5.7.3 Financials
    • 5.7.4 Recent Developments
    • 5.7.5 SWOT Analysis
  • 5.8 Accenture
    • 5.8.1 Business Overview
    • 5.8.2 Products & Services
    • 5.8.3 Financials
    • 5.8.4 Recent Developments
    • 5.8.5 SWOT Analysis
  • 5.9 CGI Group
    • 5.9.1 Business Overview
    • 5.9.2 Products & Services
    • 5.9.3 Financials
    • 5.9.4 Recent Developments
    • 5.9.5 SWOT Analysis
  • 5.10 Capgemini
    • 5.10.1 Business Overview
    • 5.10.2 Products & Services
    • 5.10.3 Financials
    • 5.10.4 Recent Developments
    • 5.10.5 SWOT Analysis
  • 5.11 Tech Mahindra
    • 5.11.1 Business Overview
    • 5.11.2 Products & Services
    • 5.11.3 Financials
    • 5.11.4 Recent Developments
    • 5.11.5 SWOT Analysis
  • 5.12 DXC Technology
    • 5.12.1 Business Overview
    • 5.12.2 Products & Services
    • 5.12.3 Financials
    • 5.12.4 Recent Developments
    • 5.12.5 SWOT Analysis
  • 5.13 HCL Technologies
    • 5.13.1 Business Overview
    • 5.13.2 Products & Services
    • 5.13.3 Financials
    • 5.13.4 Recent Developments
    • 5.13.5 SWOT Analysis
  • 5.14 Ernst & Young (EY)
    • 5.14.1 Business Overview
    • 5.14.2 Products & Services
    • 5.14.3 Financials
    • 5.14.4 Recent Developments
    • 5.14.5 SWOT Analysis
  • 5.15 Tata Consultancy Services (TCS)
    • 5.15.1 Business Overview
    • 5.15.2 Products & Services
    • 5.15.3 Financials
    • 5.15.4 Recent Developments
    • 5.15.5 SWOT Analysis

• 6 Market Segmentation

  • 6.1 Shared Services Market, By Service Type
    • 6.1.1 Finance & Accounting
    • 6.1.2 Human Resources
    • 6.1.3 Information Technology
    • 6.1.4 Customer Services
    • 6.1.5 Procurement
  • 6.2 Shared Services Market, By Delivery Model
    • 6.2.1 Onshore
    • 6.2.2 Offshore
    • 6.2.3 Nearshore
  • 6.3 Shared Services Market, By Organization Size
    • 6.3.1 Small & Medium Enterprises
    • 6.3.2 Large Enterprises

• 7 Competitive Analysis

  • 7.1 Key Player Comparison
  • 7.2 Market Share Analysis
  • 7.3 Investment Trends
  • 7.4 SWOT Analysis

• 8 Research Methodology

  • 8.1 Analysis Design
  • 8.2 Research Phases
  • 8.3 Study Timeline

• 9 Future Market Outlook

  • 9.1 Growth Forecast
  • 9.2 Market Evolution

• 10 Geographical Overview

  • 10.1 Europe - Market Analysis
    • 10.1.1 By Country
      • 10.1.1.1 UK
      • 10.1.1.2 France
      • 10.1.1.3 Germany
      • 10.1.1.4 Spain
      • 10.1.1.5 Italy
  • 10.2 Asia Pacific - Market Analysis
    • 10.2.1 By Country
      • 10.2.1.1 India
      • 10.2.1.2 China
      • 10.2.1.3 Japan
      • 10.2.1.4 South Korea
  • 10.3 Latin America - Market Analysis
    • 10.3.1 By Country
      • 10.3.1.1 Brazil
      • 10.3.1.2 Argentina
      • 10.3.1.3 Mexico
  • 10.4 North America - Market Analysis
    • 10.4.1 By Country
      • 10.4.1.1 USA
      • 10.4.1.2 Canada
  • 10.5 Shared Services Market by Region
  • 10.6 Middle East & Africa - Market Analysis
    • 10.6.1 By Country
      • 10.6.1.1 Middle East
      • 10.6.1.2 Africa

• 11 Global Economic Factors

  • 11.1 Inflation Impact
  • 11.2 Trade Policies

• 12 Technology & Innovation

  • 12.1 Emerging Technologies
  • 12.2 AI & Digital Trends
  • 12.3 Patent Research

• 13 Investment & Market Growth

  • 13.1 Funding Trends
  • 13.2 Future Market Projections

• 14 Market Overview & Key Insights

  • 14.1 Executive Summary
  • 14.2 Key Trends
  • 14.3 Market Challenges
  • 14.4 Regulatory Landscape

Segments Analyzed in the Report

The global Shared Services market is categorized based on

By Service Type

• Finance & Accounting
• Human Resources
• Information Technology
• Customer Services
• Procurement

By Organization Size

• Small & Medium Enterprises
• Large Enterprises

By Delivery Model

• Onshore
• Offshore
• Nearshore

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Key Players

• Accenture
• Deloitte
• Capgemini
• IBM
• Genpact
• Tata Consultancy Services (TCS)
• Infosys
• Wipro
• DXC Technology
• CGI Group
• HCL Technologies
• Ernst & Young (EY)
• KPMG
• Atos
• Tech Mahindra