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Payroll Outsourcing: Introduction
Payroll outsourcing is the process of engaging an external entity to manage all payroll-related activities of a company. The outsourcing of payroll tasks usually happens to lower costs and reduce the time needed to manage payroll-related financial tasks. Payroll outsourcing means outsourcing payroll tasks to a third-party service provider to boost efficiency and decrease operational expenses.
The Global Payroll Outsourcing Market Forecast:
In 2018, the global Payroll Outsourcing market stood at 8297.29 million US dollars. The market is projected to reach 12460.35 million US dollars at the end of 2025 and an annual growth rate (CAGR) of 6.11% between 2019 and 2025.
Key Drivers and Emerging Trends
The main reasons behind the growth of the global payroll outsourcing market are the growing demand for reducing costs and operational efficiency around the globe. Additionally, the numerous benefits like the reduction of fines and a decrease in overall risk are fueling the expansion of the payroll outsourcing market in significant amounts. It is estimated that over 40% of companies have to pay penalties for incorrect or late filling.
This undesirable circumstance can be avoided by using the services of a third-party payroll provider, as many payroll outsourcing providers also provide tax assurance and guarantee the avoidance of penalties. Technology advancements, like technological advances and an increase in demand for standardization of procedures, are anticipated to propel the market for payroll outsourcing to grow in the coming years.
In addition, the increase in demand for multi-country, centralized outsourcing solutions is expected to boost the growth of the worldwide payroll outsourcing market in the coming years. Additionally, the vendors have a growing focus on facilitating cost-effective and affordable solutions to boost the growing market for payroll outsourcing.
Restraint in the Payroll Outsourcing Services Market
The growth of the global payroll outsourcing services market can be hampered by factors like security and privacy. These two factors may create obstacles in the growth during the forecast period.
Segment Analysis of the Global Payroll Outsourcing Market:
Type- Segment Analysis
Based on the type, the fully outsourced services segment is predicted to grow at the fastest rate during the forecast time. A fully controlled payroll service is ideal for companies that want to concentrate on their primary business. The experts support firms by providing services that can help improve the connection with the employee's team and provide correct payslips on a suitable date. Outsourced payroll offers all the advantages of a well-run payroll department with no costs or direct responsibilities.
Application - Segment Analysis
In the market of global payroll outsourcing services, the international sub-segment is expected to expand at the fastest growth rate over the forecast period, based on the application. Growing demand for multi-country as well as centralized outsourcing options are driving the expansion of the market. For multinational corporations, payroll processing in-house is lengthy, complex, costly, expensive, and prone to errors, as well as exposes the company to the risk of not being in compliance. To ease the administrative burdens and cost of internal payroll, a lot of companies have implemented international payroll outsourcing solutions.
Regional - Segment Analysis:
According to the region of the region, it is predicted that the North American region is expected to take a large market share of this global payroll outsourcing services market in the year 2019. Integration of the most advanced solutions, which include analytical business processes, automatized sub-processes, along with big data, are expected to drive the payroll outsourcing market expansion in this region during the period of forecast. There is a substantial number of companies in the region, such as HP Inc., Automatic Data Processing Inc., Intuit, and others, are driving the expansion of the payroll outsourcing services market.
The Key Market Segmentation of the Global Payroll Outsourcing Market:
Global Payroll Outsourcing Market can be divided into Product Types, Application, End-User Industry, and Geographical landscapes, etc.
Payroll Outsourcing Market Segmentation By Product Type:
Payroll Outsourcing Market Segmentation By Application:
Payroll Outsourcing Market Segmentation By End-User Industry:
Consumer and Industrial Products
IT and Telecommunication
Payroll Outsourcing Market Segmentation By Geographical Landscape:
The Middle East and Africa
Major Key Players in the Global Payroll Outsourcing Market Are:
NGA Human Resources
Ceridian HCM, Inc.
The Global Payroll Outsourcing Market Report Highlights:
In the year 2019, Accenture, along with FieldCore, Inc. (a GE company), has successfully automated and streamlined the various human resources and payroll systems. Accenture was chosen as the company to implement an online system for human resources and payroll management, as well as time and attendance for more than 3,000 employees of FieldCore across 27 countries within the European region.
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