Payroll Outsourcing: Key market research findings
- Growing prevalence of multi-country contracts
- Rise in automated payroll operations
Technavio has released a new market research report on the global payroll outsourcing market, which is expected to grow at a CAGR of 4% between 2016 and 2020. Payroll outsourcing is the fastest-growing segment of the global human resource outsourcing (HRO) market, and is expected to generate revenues of $19 billion by 2020. Enterprise are increasingly outsourcing their payroll operations to achieve cost reduction, and can focus more on their core operations. The Americas dominate the payroll outsourcing market, accounting for 65% of the overall market share. Vendors in the region leverage automated sub-processes, business analytics, big data, and deployment of mobility and cloud delivery models to governments.
Segmentation of payroll outsourcing market
“Of late, several MNCs are making huge investments in the payroll outsourcing, and are preferring vendors with strong geographic presence and proven capabilities. This has gained popularity for multi-country payroll outsourcing (MPCO) contracts. Cost reduction, risk management, improved management control, compliance, and business expansion are some of the important factors that have prompted MNCs to outsource their payroll functions to external outsourcing platform,” says Amit Sharma, Lead Analyst, ICT, Technavio Research.
The new industry research report from Technavio discusses in detail the key drivers and trends responsible for the growth of this market and its sub-segments.
Vendors are integrating IT solutions in payroll processing system to automate payroll operations. They are leveraging new payroll software tools for automatic payment calculation, deduction calculations, and record keeping. An automated payroll system employs the computerized system to manage payroll tasks. Such initiatives will diminish productivity problems and keep track of costs.
The leading vendors in the global payroll outsourcing market are ADP, NGA, Ceridian, Genpact and Workday. Payroll outsourcing is one of the fastest-growing segments of the global BPO market. Payroll outsourcing is gaining popularity among emerging economies, and hence competition is intensifying among established players as well.
A more detailed analysis is available in the Technavio report, Global Payroll Outsourcing Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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