Payroll Outsourcing Market Size, Share, Growth, and Industry Growth by Type (Full-Managed Outsourcing and Co-Managed Outsourcing), By Application (Small Business, Midsized Business and Large Business), Regional Forecast To 2032

Updated On: 01 April 2024

Payroll Outsourcing Market REPORT OVERVIEW

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The global payroll outsourcing market size was USD 10040 million in 2021 and market is projected to touch USD 18719 million by 2032, exhibiting a CAGR of 5.8% during the forecast period.

Payroll outsourcing is a system to ensure employee payment. It is used to record financial data of the employee. It is known as business means for engaging external party to handle all finance related activities. Several organizations collaborate with an external firm. Such collaborations help to handle all payroll functions. This is known as payroll outsourcing. Usage of payroll activities benefits all kinds of businesses. It also helps to take care of tax matters. This financial outsourcing helps to get real time access to payroll online. The system’s function is to save money and time. It is a cost-effective outsourcing.

Increasing number of organizations is expected to fuel market growth. Rising demand for time-saving and cost-effective measures are projected to boost product adoption. Growing need to run business or any organization smoothly is predicted to accelerate market growth. Also, increasing trend of (MCPO) Multi-Country Payroll Outsourcing is estimated to boost market growth. Growing automation and hybrid payroll system is expected to increase market growth during the forecast period. In addition, the need to avoid compromising confidential data, payroll outsourcing market is expected to witness significant growth.

COVID-19 Impact: Growing  Employee Downsizing during the Pandemic to Hamper Market Expansion

Outbreak of COVID-19 pandemic challenged business operations almost every way. Shutdown of multiple organizations created a huge disturbance in markets. Also, pandemic caused labor loss which reduced product adoption. The market witnessed supply chain disruptions. Also, strict lockdown restrictions globally led to closure of several organizations and businesses, which declined the sales for payroll systems sales.

On the contrary, during the COVID-19 pandemic the consequent shift towards remote working offered a positive response. Working from home boosted digitalization and increased the adoption of advanced technology.  This growing trend of digitalization is responsible to boost product adoption.  

LATEST TRENDS 

"Increasing Number of Organizations to Favor Market Expansion"

The number of organizations is increasing day-by-day which is expected to fuel market growth. Increasing demand from employees for safe financial system is projected to drive market growth.  Growing need to maintain employee salary is estimated to accelerate product adoption in various organizations. Also, rising need for finance and accounting (F&A) and human capital management (HCM) are projected to drive market growth during the forecast period. In addition, organization’s demands to reduce expenses is predicted to accelerate market growth. growing demand to manage team and staff are estimated to fuel market growth. Increasing demand from human resources in various organizations is projected to boost payroll outsourcing market growth.

Payroll Outsourcing Market SEGMENTATION

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• By Type

Based on type, the market is divided into full-managed outsourcing and co-managed outsourcing.

Full-managed outsourcing is the leading part of the type segmentation.

• By Application

Based on the application, the market is divided into small business, midsized business, and large business.

Small business is the leading part of the application segmentation.

DRIVING FACTORS

"Growing Technological Development and Automation to Incite Market Growth"

Increasing demand for technological developments in various industries is projected to drive market growth. Rising government initiatives for digitalization is expected to fuel system adoption. Increasing need for cloud-based payroll is estimated to accelerate market growth. Also, the features associated with this system such as easy access, scalability, functionality, security, and low cost is predicted to boost market growth during the forecast period. Increasing need to update foreign tax legislation is expected to expand product adoption. Growing demand to avoid potential penalties is estimated to accelerate payroll outsourcing market growth.

"Rising Trend of Multi-Country Payroll to Escalate Market Growth "

 Increasing trend of multi-country payroll due to splitting of employees of a particular organization globally is expected to expand market growth. Increasing number of organizations adopting business analytics is projected to drive market growth. Also, demand by organizations for cost-effective and time saving measurers is predicted to increase system adoption. Leading market players are adopting customized financial services is estimated to boost market growth during the forecast period. In addition, the need for in-house trained payroll staff is predicted to boost market growth.  Rising influence of hybrid payroll is expected to grow product demand.

RESTRAINING FACTORS

"Growing Cyberattacks to Restrict Market growth"

Increasing number of cyberattacks in such systems t is projected to decline product adoption. Increasing cybersecurity threats is predicted to hamper the market growth. Also, continuous regulatory changes in the system is estimated to restrict market growth during the forecast period. Presence of mature payroll service is predicted to restrict market growth.

Payroll Outsourcing Market REGIONAL INSIGHTS

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"Growing Utilization of Business Analytics to Drive Market Share in North America  "

North America is estimated to hold largest payroll outsourcing market share due to growing utilization of business analytics. Increasing demand for automated sub-process in the region is estimated to fuel technology adoption. Increasing ability of single vendors to handle payroll is projected to drive market growth. Rising need to keep confidential data safe is and keeping safe from cyberattacks are anticipated to fuel market growth. Growing number of organizations and demand for better employee satisfaction is anticipated to boost payroll outsourcing market growth in the coming years.

Europe is expected to show considerable market growth due to increasing demand for time efficiency and cost reduction by the MCPO and MNCs are projected to drive market growth. Growing adoption of automation and cloud-based services is estimated to accelerate market growth. 

KEY INDUSTRY PLAYERS

"Leading Players Adopt Partnership Strategies to Stay Competitive"

The report covers information about the list of market players and their latest development in the industry. The information includes mergers, partnerships, acquisitions, technological developments, and production lines. Other aspects examined for this market include complete research on companies producing and introducing the latest products, regions they conduct their operations in, automation, technology adoption, generating the most revenue, and making a difference with their products.

List of Market Players Profiled

• ADP (U.S.)
• Sage (U.K.)
• Xerox (U.S.)
• Paychex (U.S)
• Intuit (U.S.)
• Zalaris (Norway)
• Infosys (India)
• KPMG (Netherlands)
• Vision H.R. (U.S.)
• Deloitte (India)
• Aurion (U.S.)
• Activpayroll (U.K.)
• Immedis (Ireland)
• Ascender (Australia)
• NGA HR (Belgium)
• Neeyamo (India)
• BDO (Belgium)
• CloudPay (U.K.)
• Excelity (Singapore)
• i-Admin (Singapore, Hong Kong, China, Taiwan, and South Korea)
• TriNet (U.S.)

REPORT COVERAGE

This research profiles a report with general studies that explain the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by examining the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, restraints, and others. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.