Global Payroll Outsourcing Services Market by Type, By Application and By Region, 2020-2027
The GMI Research predicts that the Payroll Outsourcing Services Market is experiencing amplification in demand over the forecast period. This is mainly due to the surging requirement to decrease cost and enhance functional effectiveness, and enormous beneficial advantages like evading penalties and reducing potential threats.
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Introduction of the Payroll Outsourcing Services Market
Payroll outsourcing refers to the recruiting of an external party to handle the activities related to payroll of a business. These functions help decrease cost and save time associated with financial tasks. The outsourcing provider enhances the efficiency by reducing the operational cost.
Major Market Players:
- Accenture Plc
- HP Inc.
- Gusto
- OnPay, Inc.
- Sage Group Plc
- Workday Inc.
- Automatic Data Processing Inc.
- Infosys Ltd.
- Intuit
- Paychex Inc.
Payroll Outsourcing Services Market Dynamics (including market size, share, trends, forecast, growth, forecast, and industry analysis)
Some of the prominent drivers proliferating the growth of the global payroll outsourcing services market include the augmenting requirement for cost reduction, various benefits like dodging of penalties, and reduced potential risk along with the ongoing technological innovations. In addition, nearly more than 40% of the businesses pay penalties owing to their incorrect or late fillings. However, the services help eliminate unpleasant situations assisting third-party payroll services as many vendors offer tax guarantees and certify avoidance of fines. The soaring demand to systematize the processes further supplements the market growth. Also, the surging demand for multi-country and centralized outsourcing solutions will raise the market growth. Furthermore, the increasing emphasis of vendors on allowing low-cost and accessible solutions will pave the way for market growth. On the other hand, rising apprehension towards security and privacy will restrain the Payroll Outsourcing Services market Share.
Type Segment Drivers
Based on the type, fully outsources services will hold a major share in the market over the coming years. They are an accurate fit for a company emphasizing on its core business. The specialists promote the companies to strengthen the relationship with a company's staff and offer the right payslips at the desired time. Also, the services offer an effective payroll department without any overheads responsibility.
Application Segment Drivers
Based on the application, the international sub-segment is forecasted to witness a significant demand owing to the aggravating demand for multi-country and centralized outsourcing solutions. Internal payroll processing is time-consuming, difficult, costly, and error-prone for most global companies and can place the organization at the threat of non-compliance. Thus, the deployment of international payroll outsourcing solutions helps to reduce the administrative difficulties and expenses of the in-house payroll.
Regional Drivers
Based on the regional coverage, North America is contemplated to grow at a faster CAGR owing to the incorporation of sophisticated solutions, which include business analytics, automated sub-processes, and big data. Moreover, the existence of a large number of vendors, such as Automatic Data Processing Inc., HP Inc., and Intuit, is driving the market growth.
Payroll Outsourcing Services Market Segmentation:
Segmentation by Type
- Hybrid
- Fully Outsourced
Segmentation by Application
- Mid-market
- National
- International
Segmentation by Region:
- Asia Pacific
- China
- Japan
- India
- Rest of APAC
- North America
- United States of America
- Canada
- Europe
- United Kingdom
- Germany
- France
- Spain
- Rest of Europe
- RoW
- Brazil
- UAE
- Saudi Arabia
- South Africa
About GMI Research
GMI is a market research and consulting company providing business insights and market research reports for small & medium enterprises and large organizations. The team helps clients to apprehend the impact of dynamics such as size, share, drivers, growth opportunities, and other aspects. Our team of analysts and industry experts carry out market intelligence studies to certify relevant and fact-based research across various sectors like FMCG, Technology, Energy and Healthcare. Highlighted as the ‘20 Most Promising Market Research Consultants’ in list of Silicon India Magazine in 2018, we assist business stay out of the curve.