The end of Shared Services as we know it?

Services delivery trends: Smaller, geographically dispersed, centers more responsive to local customer needs

In striking contrast with the overall global 10% growth in jobs created through FDI, foreign investment in shared services* declined by more than 20% in 2016. When also considering domestic establishment in large size countries, the reduction in jobs created is less dramatic, but still represents close to 10%.

As a result, the overall number of shared services jobs announced in 2016 only reached half the volume it generated in 2010, and only one third of the peak level shared services job creation reached in 2006.

This continued decline in jobs created through shares services centers illustrates the transformation of service delivery operating models across industries, as companies seek to balance delivery capabilities and move key functions closer to other operations and customers. 

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*For the purpose of this report 'shared services' refers to both captives and BPOs.