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Payroll Outsourcing Services
Market, Supplier, Risk and
Competitive Intelligence

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  • Category Report with unlimited updates
  • Supplier Watchlist for 3 suppliers
  • Supplier Shortlisting Tool

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Manage Payroll Outsourcing Services Category with Ai powered
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Abi will answer all Payroll Outsourcing Services related
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Get up-to-date market and supplier info on Payroll Outsourcing Services to help you build

Intelligence covers market and price outlook, SWOT analysis, demand & supply drivers, engagement models and Procurement best practices

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Intelligence on category covers the following aspects market outlook, supply market, SWOT analysis, Cost components & Price outlook, Demand and supply drivers, Engagement Models and Procurement Best Practices

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Assess Supplier Risk based on key risk and compliance parameters

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Supplier assessment covers the following parameters Financial Risk, Ethical, Labor, Environmental Compliance, IT Security.

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Select suppliers based on industry, country, classification from a database of 4.2 mn suppliers. Get detailed supplier profiles with supplier capabilities, revenue, certifications, risk ratings

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Measure category performance on 15 key parameters across cost, risk and strategy KPIs

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Source Macro Data and Market Indices information from leading data sources across these key areas - Labor Rates, Currency, Energy, Country Risk, Trade Flow/Transportation, Port Data, Tariff, Weather and Epidemics

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Abi will answer all Payroll Outsourcing Services related
procurement queries with relevant data points

Abi - AI powered digital procurement assistant

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Get up-to-date market and supplier info on Payroll Outsourcing Services to help you build

Intelligence covers market and price outlook, SWOT analysis, demand & supply drivers, engagement models and Procurement best practices

1

Intelligence on category covers the following aspects market outlook, supply market, SWOT analysis, Cost components & Price outlook, Demand and supply drivers, Engagement Models and Procurement Best Practices

manage-risk

Assess Supplier Risk based on key risk and compliance parameters

1

Supplier assessment covers the following parameters Financial Risk, Ethical, Labor, Environmental Compliance, IT Security.

2

Supplier assessment is powered by world’s leading data partners including D&B, CreditSafe, Dow Jones, Refinitiv, Orpheus

discover-supplier

Identify right fit suppliers based on your selection criteria including revenue, capabilities, certification, geography

1

Select suppliers based on industry, country, classification from a database of 4.2 mn suppliers. Get detailed supplier profiles with supplier capabilities, revenue, certifications, risk ratings

assess-category-perforamnce

Benchmark your category performance against peers and the market

1

Measure category performance on 15 key parameters across cost, risk and strategy KPIs

source-market-indices

Get information on key factors affecting your supply

1

Source Macro Data and Market Indices information from leading data sources across these key areas - Labor Rates, Currency, Energy, Country Risk, Trade Flow/Transportation, Port Data, Tariff, Weather and Epidemics

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Report Coverage

  • Payroll Outsourcing Industry Trends
  • Data Protection Law–Impact on Payroll

  • Supply Trends and Insights

  • Global Supplier List and Service Capabilities

Market Size

Market Size North America

$9.3 Bn

Market Size Europe

$5.3 Bn

Market Size Asia Pacific

$3.8 Bn

Market Size Latin America

$1 Bn

The global market for payroll outsourcing is estimated to reach $10336 Mn by 2023 at a CAGR of 4.4%. The market growth is uniform across all regions, with the maximum growth coming from multi-country payroll contracts. The multi-country payroll market is growing 3X the rate of the overall market and represents 15% of the entire standalone payroll services revenue. 

North America and Europe are the dominant payroll markets and account for a major portion of the global deal activity. Asia Pacific (APAC) and Latin America (LATAM) are also emerging payroll outsourcing markets. 

Cloud-based systems are expected to introduce new opportunities within the global payroll sphere as that would make it easier to align payroll and HR internationally. The report also provides Brexit's impact on payroll outsourcing, along with a study of different impact areas.  

The last decade has undergone a fast-paced transformation and adoption of leading-edge technologies in every aspect of the lifestyle.  The world of payroll is no exception, with rising demand for payroll experts and employees alike, the industry is experiencing a fast pace of change in how payroll teams’ operate. 

This has paved the way for myriads of intelligent software solutions and game-changing technologies which look to enhance the payroll experience, most of which have become a must-have to compete in the global payroll realm.

 

Table of Contents

  1. Payroll Outsourcing Executive Summary
  2. Global Payroll Outsourcing Industry Outlook
  3. Impact of COVID-19 Payroll outsourcing Industry
  1. Payroll Outsourcing Market Analysis
  2. Global Payroll Outsourcing Market Maturity and Industry Trends
  3. Growth Drivers and Constraints
  4. Regional Market Outlook
  5. Industry Outlook: Opportunities and Challenges
  6. Porter's Five Forces Analysis:Developed and Emerging Markets

 

  1. Market Monitoring Insights
  2. Cost Structure Analysis
  3. Case Studies: Payroll Outsourcing Benefits
  4. Cost Components: In-House Versus Outsourced

 

  1. Procurement Best Practices
  2. Sourcing Models
  3. Success Factors
  4. Supplier Selection Checklist
  5. Payroll Outsourcing Adoption Trends
  6. Pricing Models
  7. Key Performance Indicators (KPIs) and Service Level Agreements (SLAs)
  8. Negotiation Levers

 

  1. Supplier Analysis
  2. Supply Market Outlook
  3. Global and Regional Suppliers List and Service Capabilities
  4. Major Global Suppliers Profile and SWOT

 

  1. Purchasing Process
  2. RFP/RFI Questionnaire

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Payroll Outsourcing Services  Market Analysis and Global Outlook

  • The global payroll outsourcing market was estimated to be around $19 Bn by 2020 at a CAGR of 4.4% and is projected to reach $19.95 Mn by 2021, with a market growth at a CAGR of 4–5%.
  • Due to the impact of COVID-19, companies are planning to go for a single global provider with an MCPO sourcing model. Also, they are looking to consolidate the global payroll vendors.
  • North America continues to lead the payroll outsourcing services market over the forecast period owing to factors such as the utilization of business analytics, automated sub-processes, and big data along with the employment of mobility and cloud delivery models to governments.
  • Payroll outsourcing market maturity is lowest in the Middle East and Africa (MEA).
  • With the growing and emerging economies in APAC and Latin America, a high growth rate (approximately 7–11%) has been witnessed in these regions.

 Payroll Outsourcing Global Market Maturity  

Payroll outsourcing market maturity is lowest in the Middle East and Africa.

  • With the growing and emerging economies in APAC and Latin America, a high growth rate (approximately 7–11 percent) has been witnessed in these regions

Payroll Outsourcing Services  Global Industry Trends

  • With the increasing demand for cost reduction and time efficiency by the MNCs, MCPO has emerged as a trend, growing at a rate of approximately 20%.
  • Buyers' increasing interest in self-service platforms, which leads to easier access to employee data and thus better employee satisfaction, is driving the growth of technology adoption.
  • Latin America and APAC perceive the adoption of cloud-based services as a way to leap ahead of their competitors on technological grounds.
  • Global payroll trends include bundling payroll services, multi-country payroll outsourcing (MCPO), process automation and adoption of cloud-based services.
  • Countries like Poland, Turkey, Switzerland, Portugal, Germany, Argentina and Mexico show more than 10% bi-annual change in the global payroll outsourcing complexity index.
  • Companies processing payroll in-house due to the risk of compromising confidential data, are being offered partial/hybrid payroll solutions by suppliers.
  • The cost components of the payroll industry include the system costs, payroll labor and non-labor costs and payroll maintenance costs.

Payroll Outsourcing Services  Global Drivers 

Cost savings (above 20 percent)

  • Outsourcing payroll leads to the reduction or control of expenditure by avoiding the hiring of new staff and technology-driven cost.
  • International payroll outsourcing companies are focusing on creating reusable service delivery platforms with automation and scalability by employing innovative software solutions and tools for automatic deduction calculations, payment calculations, and record-keeping.

Rising demand for MCPO 

  •  Increasing ability of single vendors to handle payroll across countries

Better compliance

  • Outsourcing helps the buyer to stay updated with the changes in payroll regulatory legislations, especially in a global environment.

 Technological advantage

  • Governments' adoption of e-filings and digital services is driving the growth of cloud-based payroll services.

Constraints 

Market Consolidation

  • Low-cost competitiveness due to the presence of mature payroll service providers is challenging the profit growth of emerging industry players.

Regulatory Pressure

Constant regulatory changes to keep pace with the economic growth in APAC are hitting the profit margins of payroll outsourcing companies.

COVID-19 Impact on Payroll Outsourcing Services Market

The COVID-19 crisis has altered and challenged business operations in almost every way. Even the best-formed business continuity plans (BCP) are under-prepared to deal with the huge disturbance and ambiguity caused due to the public-health crisis.

As such, companies worldwide are rethinking their strategies fast, while payroll and HR teams need to focus on keeping up with the evolving requirements to remain compliant, while assisting employees fit into a ‘new normal’ workspace.

A recent survey has revealed that businesses that outsource their payroll functions find it easier to stay ahead of the curve and implement changes in rules and regulations.

Why You Should Buy This Report

  • The report gives details on key global suppliers like Workday, ADP, NGA Human Resources, etc. including a detailed SWOT analysis.
  • It provides information on the payroll outsourcing market size and Porter’s five force analysis on the developed and emerging markets.

  • It lists out the key drivers and constraints of the global payroll outsourcing industry.

 

Payroll Outsourcing Market Frequently Asked Questions

  1. What is the market size of the payroll outsourcing market? 
  2. Beroe’s report provides an accurate update on the latest payroll outsourcing statistics. As per the report, the payroll services industry is expected to reach a market size of $10336 million by 2023 at a CAGR of 4.4%. 

 

  1. Who are the major players in the payroll outsourcing industry?
  2. The major contributors to the payroll services industry are North America and Europe with a market share of approximately 71%. Other emerging players are APAC and LATAM. 

 

  1. What are the latest trends in the payroll outsourcing market?
  2. Some of the latest trends in the payroll services industry are the emergence of factors such as political uncertainty and low crude oil prices affecting the industry. Key players such as North America and Europe have grown to hold considerable market size in the industry. Finally, payroll labor and non labor costs also contribute to the total cost of payroll services. 

 

  1. What will be the expected growth of the payroll outsourcing industry?
  2. The payroll services industry is expected to grow at a constant CAGR of 4.4%. 

 

  1. What are the key drivers of the payroll outsourcing market?
  2. Some of the global drivers of the payroll services industry are outsourcing that can offer cost saving options, better compliance with payroll legislations and growth of cloud-based payroll services. Furthermore, there’s also an expected increase in the abilities of single vendors who can handle payroll across countries. 

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