Shared Services Center Market Size

Shared Services Center Market Size

Shared Services Center Market size was valued at USD 51.1 billion in 2023 and is anticipated to register a CAGR of over 16% between 2024 and 2032, as an increasing number of companies establish new service centers and expand their operations. This trend is driven by the pursuit of operational efficiency, cost optimization, and streamlined business processes.

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In August 2023, Teleperformance, a prominent player in digital business services globally, unveiled its cutting-edge global shared services center in Hyderabad, India. The new facility, hosting 500 employees, focused on Teleperformance's Global Business Services practice. This practice integrated advanced data analytics and next-generation AI technologies to streamline back-office services such as workforce management, technology, finance, administrative support, IT, and human resources. The inauguration of this site expanded Teleperformance's Global Business Service practice in India to encompass over 3,300 dedicated staff, reinforcing the company's commitment to providing comprehensive and innovative business solutions.
 

With organizations recognizing the benefits of consolidating support functions, SSCs offer a centralized approach to delivering shared services, including finance, HR, and IT. The rising adoption reflects a strategic move towards enhancing productivity and competitiveness in the dynamic business landscape, fuelling the growth of the SSC market.
 

The increasing trend of companies expanding their operations globally, has fueled the demand for shared services centers. As businesses grow and establish a presence in multiple geographies, SSCs offer a centralized approach to deliver consistent and standardized services across different regions. This ensures uniformity in processes and compliance with regulations and facilitates seamless communication and coordination across diverse locations. SSCs enable companies to scale their operations globally without compromising efficiency and compliance.
 

In August 2023, RHI Magnesita, a global leader in the manufacturing and supply of premium refractory products, systems, and solutions, initiated operations at its Global Shared Service Centre (GSS) in India. Located in Gurugram, this marks the company's fifth global shared service center, complementing existing ones in China, Europe, and North and South America. Recognizing the increasing importance of the Indian market, RHI Magnesita strategically established the GSS in the country to deliver a comprehensive range of services across key processes such as Attract to Grow (ATG), Procure to Pay (PTP), Order to Cash (OTC), and Record to Report (RTR).
 

Companies are increasingly recognizing the value of focusing on their core business functions while outsourcing non-core activities to SSCs. By entrusting support functions to specialized shared services centers, organizations can redirect their internal resources and attention toward core competencies. This strategic shift allows for better resource allocation, talent concentration, and innovation within the organization. SSCs, equipped with expertise in specific business functions, contribute to the overall agility and adaptability of companies in response to market dynamics and changing business requirements.
 

The shared services center (SSC) market faces constraints stemming from challenges such as data security concerns, regulatory compliance complexities, and resistance to change within organizations. Implementation costs and potential disruptions during the transition phase also act as significant restraints. Additionally, the need for skilled personnel and the risk of over-centralization are factors that impede the widespread adoption of SSCs. Addressing these hurdles requires strategic planning and proactive measures to ensure a smooth and effective integration of shared services within diverse organizational frameworks.