Global Shared Services Market is Growing Rapidly as Indian IT Corporation Infosys Limited Joins Forces with Belgian Telecom Company Telenet to boost digital and data capabilities

"Shared Services" is a general term defining an administrative philosophy that involves centralizing all the managerial administrative functions of an enterprise that were previously performed in various locations or departments. Services that are shared among the different business units of an organization include accounting, buying, inventory, payroll, recruiting, and technical support. The benefits of shared services outsourcing include centralization of decision-making, increased efficiency, decreased costs, and increased profitability. Centralized decision-making allows a single department to make decisions related to the organization as a whole.

Increasing focus on cost minimization in overall operations is expected to accelerate growth of the global shared services market during the forecast period. Overall operational of companies have changed significantly over the years. Key personnel in the management are laying emphasis on a cost-effective approach rather than a transaction-based approach. Many organizations are focusing on the processes that would align operations with a corporate strategy, minimize redundancy, improve quality, augment service, and reduce administration cost. Shared services are proving to be key in streamlining these operations and minimizing the cost. Hence, these factors are expected to drive growth of the global shared service market during the forecast period. Moreover, growing need for improving customer service is expected to boost the global shared service market growth in the near future.

However, major issues regarding data security and complexity are expected to hamper the global shared service market growth over the forecast period. Besides, there are lucrative growth opportunities in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa. Furthermore, growing popularity of cloud-based solutions and the centralization of data are key trends in the market. Among regions, Asia Pacific is expected to witness significant growth in the global shared services market during the forecast period. This is owing to the presence of close-knit cultural homogeneity and the availability of low-cost infrastructure across the region. Moreover, Europe is expected to register a robust growth rate in the global shared service market over the forecast period. This is owing to the availability of skilled personnel and robust knowledge of languages across Western Europe. Besides, the presence of major universities that enable a vast qualified pool of talent is expected to drive the regional market growth.

Key players involved in the global shared services market are Tata Consultancy Services Limited, Infosys Limited, Capgemini SE, SAP, Cognizant, HCL, Cognizant, Atos SE, Oracle Corporation, Accenture, IBM Corporation, and EXL.

For instance, in December 2019, Infosys Limited, an Indian IT corporation, entered into a 5-year technology service contract with Telenet, a Belgian telecom company.