According to the latest report by IMARC Group, titled "Payroll Outsourcing Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2022-2027," the global payroll outsourcing market size reached US$ 8.6 Billion in 2021. Payroll outsourcing refers to the process of outsourcing services to third-party organizations for handling the administrative and compliance functions of paying employees. Its adoption aids enterprises in minimizing the costs of purchasing and maintaining appropriate software packages and hiring in-house trained payroll staff. The essential functions of payroll outsourcing include calculating employee salary, maintaining employee records, computing bonuses, distributing payroll and generating payroll-related reports while complying with the taxation laws of the government. This assists in improving overall efficiency by saving additional costs and time of the organization. It is also employed to keep the users updated with foreign tax legislation to avoid any potential penalties.
We are regularly tracking the direct effect of COVID-19 on the market, along with the indirect influence of associated industries. These observations will be integrated into the report.
Global Payroll Outsourcing Market Trends:
The market is primarily driven by the increasing adoption of HR outsourcing across the globe. Numerous companies are focusing on outsourcing complex HR processes to enhance the cost and time efficiency of their firm. They are widely adopting payroll outsourcing services in an attempt to reduce the complexities associated with the in-house payroll related activities and focus on core issues of their businesses to ensure smooth functioning of the company. This, in turn, is creating a positive outlook for the market. Furthermore, extensive utilization of big data and business analytics is expected to facilitate the uptake of these services on the global level. Apart from this, the current trend of remote working among the majority of the companies on account of the rapid outbreak of the coronavirus disease (COVID-19) and the consequent need for social distancing is acting as another major growth-inducing factor. This has impelled enterprises to shift to online payroll services offered by service providers to streamline the overall process. The market is further driven by the rising preference for multi-country payroll outsourcing (MCPO), bundling payroll services and process automation across the corporate sector. Several key players are also providing hybrid payroll solutions that are gaining widespread preference among end users. These services aid in reducing the confidentiality concerns by offering improved control to users over confidential data. On account of the aforementioned factors, the market is anticipated to exhibit a CAGR of 5.11% during 2022-2027.
- On the basis of the type, the market has been bifurcated into full-managed and co-managed outsourcing.
- Based on the application, the market has been divided into small, medium and large businesses.
- On the basis of the end use industry, the market has been classified into BFSI, consumer and industrial products, IT and telecommunication, public sector, healthcare and others.
- On the geographical front, the market has been segregated into North America (the United States and Canada), Europe (Germany, France, the United Kingdom, Italy, Spain, Russia and others), Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia and others), Latin America (Brazil, Mexico and others), and Middle East and Africa.
- The competitive landscape of the market has been studied in the report with the detailed profiles of the key players. Some of these players include Accenture PLC, ADP Group Companies, Deloitte Touche Tohmatsu LLC, Hewlett Packard Enterprise Company, Infosys Limited, International Business Machines Corporation, Intuit Inc., Paychex Inc., Wipro Limited, Workday, Inc., Xerox Corporation and Zalaris ASA.
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