The outsourcing and shared services market is expected to cross the $1 trillion threshold within six years. This projection highlights a massive shift in global business strategies, moving beyond simple cost-saving measures to comprehensive value creation.

Drivers of Rapid Market Growth

The reasons for this rapid market growth are two-fold but closely aligned:

  • Digital Disruption: Recent innovations have given rise to new exponential technologies. These are leading to digital disruption and transformation not only of organizations but also of entire industries and even nations.
  • Technological Advancements: Technologies such as Cloud Computing, Artificial Intelligence (AI), and Robotic Process Automation (RPA) are being actively adopted within the Outsourcing and Shared Services (OSS) industry itself.

Key Benefits Breakdown

Why are organizations rushing to outsource? The data paints a clear picture. As shown in the chart below, the primary driver is the ability to focus on core business functions, followed closely by cost reduction.

Chart showing benefits of outsourcing: 70% focus on core functions, 65% cost cutting

Figure 1: Survey results on the primary benefits of outsourcing to organizations.

From Cost-Efficiency to Value-Creation

By adopting new technologies, the industry is evolving from a pure cost-efficiency model to new innovative value-creation models.

This tech-enabled transformation presents significant opportunities for the industry’s potential impact and growth. Organizations can now leverage outsourcing not just to save money, but to access intellectual capital, solve capability issues, and enhance overall service quality.

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