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Payroll Outsourcing Services Market by Product, Application, and Geography - Forecast and Analysis 2021-2025

  • Published: Nov 2021
  • Pages: 120
  • SKU: IRTNTR43325
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The payroll outsourcing services market share is expected to increase by USD 6.15 million from 2020 to 2025, and the market's growth momentum will accelerate at a CAGR of 5.72%.

This payroll outsourcing services market research report provides valuable insights on the post-COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers payroll outsourcing services market segmentation by product (Hybrid and Fully outsourced), application (Mid-market, National, and Multinational), and geography (North America, Europe, APAC, South America, and MEA). The payroll outsourcing services market report also offers information on several market vendors, including Accenture Plc, Automatic Data Processing Inc., Deloitte Touche Tohmatsu Ltd., HP Inc., Infosys Ltd., International Business Machines Corp., Paycom Software Inc., The Access Group, Wipro Ltd., and Workday Inc. among others.

What will the Payroll Outsourcing Services Market Size be During the Forecast Period?

Payroll Outsourcing Services Market Size

Download the Free Report Sample to Unlock the Payroll Outsourcing Services Market Size for the Forecast Period and Other Important Statistics

 

Payroll Outsourcing Services Market: Key Drivers, Trends, and Challenges

The growing need for payroll cost visibility is notably driving the payroll outsourcing services market growth, although factors such as issues related to geographical transition may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the payroll outsourcing services market industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Payroll Outsourcing Services Market Driver

One of the key factors driving the global payroll outsourcing services market is the growing need for payroll cost visibility. Economic and cultural globalization, the extension of manufacturing processes across geographies, and the widespread use of lean methodologies are driving demand for payroll cost visibility. Transnational organizations often seek contracts that confer global visibility of costs and aggregate reporting of payments, employee data, and other services. Multi-country contracts provide flexibility and scalability that help operators venture into untapped markets. Clients typically opt for vendors with domain expertise and those that conform to strict service level agreements. The primary focus includes providing a hassle-free environment for HR professionals to drive and develop strategic activities (such as workforce planning and talent management) rather than spending time on administration and transactional duties. Therefore, payroll outsourcing service providers are developing solutions that promote self-service by employees in a bid to reduce administrative workloads.

Key Payroll Outsourcing Services Market Trend

The rise of multi-country and centralized outsourcing models is another factor supporting the global payroll outsourcing services market growth in the forecast period. Organizations are looking for outsourcing partners that have exposure to multiple countries and can handle all the recruitment functions using sophisticated methods such as benchmarking, best practices, and process improvement. Globalization has toughened the competitive environment for outsourcing providers. India and China are considered to be the main countries receiving outsourcing projects. Many other countries in Eastern Europe are adopting payroll outsourcing strategies to maintain a competitive edge. In the US, mid-sized companies have started to play a larger role in the global economy. The rapid adoption of payroll outsourcing strategies is expected among multinational companies. Globalization gives companies the opportunity to introduce flexibility in the processes for international expansion without dealing with the complexities and difficulties of diverse national regulations. Multi-Country Recruitment Process Outsourcing (MCRPO) is the latest trend and the fastest-growing segment among organizations. It involves the outsourcing of some or all payroll sub-processes in two or more countries.

Key Payroll Outsourcing Services Market Challenge

Inability to offer proven services will be a major challenge for the global payroll outsourcing services market during the forecast period. Payroll companies that have never dealt with unique aspects of payroll functions might unknowingly introduce errors into the payroll system, which will result in administrative problems. A payroll company lacking an interface to track employees' hours requires manual input of information leading to the probability of human errors. Most high-tech companies in the US outsource non-core functions of product development and engineering services to support core technology development to enable faster development and reduced time-to-market. Moreover, instead of focusing on revenue and profitability, vendors need to establish a long-term strategy that focuses on offering additional features across the same infrastructure. Failing to meet such expectations can tarnish a firm's reputation. Therefore, payroll companies offer all-inclusive packages to entice businesses. However, this increases the overall cost of outsourcing payroll, and the additional services integrated with the solution may not be of much use for all enterprises. This requires enterprises to clearly outline the services they seek and possible business requirements of the future before approaching a service provider.

This payroll outsourcing services market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.

Parent Market Analysis

Technavio categorizes the global payroll outsourcing services market as a part of the global data processing and outsourced services market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the payroll outsourcing services market during the forecast period.

Who are the Major Payroll Outsourcing Services Market Vendors?

The report analyzes the market's competitive landscape and offers information on several market vendors, including:

 

  • Accenture Plc
  • Automatic Data Processing Inc.
  • Deloitte Touche Tohmatsu Ltd.
  • HP Inc.
  • Infosys Ltd.
  • International Business Machines Corp.
  • Paycom Software Inc.
  • The Access Group
  • Wipro Ltd.
  • Workday Inc.

 

This statistical study of the payroll outsourcing services market encompasses successful business strategies deployed by the key vendors. The payroll outsourcing services market is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market.

Product Insights and News

  • Accenture Plc - The company offers different types of payroll outsourcing services including intelligent talent and HR operations services. 
  • HP Inc. - The company offers different types of payroll outsourcing services under the brand name HP Tech Work.

To make the most of the opportunities and recover from the post-COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The payroll outsourcing services market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Payroll Outsourcing Services Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the payroll outsourcing services market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

The value chain of the global data processing and outsourced services market includes the following core components:

  • Inputs
  • Inbound logistics
  • Operations
  • Outbound logistics
  • Marketing and sales
  • Service
  • Support activities
  • Innovation

The report has further elucidated other innovative approaches being followed by service providers to ensure a sustainable market presence.

 

Which are the Key Regions for Payroll Outsourcing Services Market?

Payroll Outsourcing Services Market Market segmentation by region

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54% of the market's growth will originate from North America during the forecast period. The US is the key market for payroll outsourcing services market in North America. Market growth in this region will be faster than the growth of the market in regions.

Encouraging the transformation of payroll services by leveraging automated sub-processes, business analytics, and big data, as well as the deployment of mobility and cloud delivery models to governments, will facilitate the payroll outsourcing services market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

The outbreak of the COVID-19 pandemic had severely impacted the economic conditions in countries in the region, which, in turn, adversely impacted the growth of different end-user industries, including BFSI, energy and utilities, telecom, IT, and retail, among others. However, in 2021, with the initiation of large-scale COVID-19 vaccination drives and the lifting of the COVID-19-induced lockdowns, end-user industries in North America that use payroll outsourcing services such as energy and utilities, manufacturing, telecom, and retail have resumed their operations in compliance with all the safety measures to control the spread of the disease and are in recovery mode. Thus, the regional payroll outsourcing services market is expected to grow during the forecast period.

What are the Revenue-generating Product Segments in the Payroll Outsourcing Services Market?

Payroll Outsourcing Services Market Segmentation

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The payroll outsourcing services market share grows by the hybrid segments. The hybrid segment will be significant during the forecast period. This model allows organizations to maintain competence in terms of processes and quality while reducing costs and leveraging labor arbitrage simultaneously. Global organizations strive to improve their payroll operations by adopting country-specific payroll management services. Country-specific models are adopted based on multiple factors such as governance systems, processes and policies, the level of operations, and types of payroll record systems.

This report provides an accurate prediction of the contribution of all the segments to the growth of the payroll outsourcing services market size and actionable market insights on the post-COVID-19 impact on each segment.

 

Payroll Outsourcing Services Market Scope

Report Coverage

Details

Page number

120

Base year

2020

Forecast period

2021-2025

Growth momentum & CAGR

Accelerate at a CAGR of 5.72%

Market growth 2021-2025

$ 6.15 million

Market structure

Fragmented

YoY growth (%)

5.47

Regional analysis

North America, Europe, APAC, South America, MEA, North America, Europe, APAC, South America, and MEA

Performing market contribution

North America at 54%

Key consumer countries

US, UK, China, Germany, and Australia

Competitive landscape

Leading companies, Competitive strategies, Consumer engagement scope

Key companies profiled

Accenture Plc, Automatic Data Processing Inc., Deloitte Touche Tohmatsu Ltd., HP Inc., Infosys Ltd., International Business Machines Corp., Paycom Software Inc., The Access Group, Wipro Ltd., and Workday Inc.

Market dynamics

Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period

Customization purview

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What are the Key Data Covered in this Payroll Outsourcing Services Market Report?

  • CAGR of the market during the forecast period 2021-2025
  • Detailed information on factors that will drive payroll outsourcing services market growth during the next five years
  • Precise estimation of the payroll outsourcing services market size and its contribution to the parent market
  • Accurate predictions on upcoming trends and changes in consumer behavior
  • The growth of the payroll outsourcing services industry across North America, Europe, APAC, South America, MEA
  • A thorough analysis of the market's competitive landscape and detailed information on vendors
  • Comprehensive details of factors that will challenge the growth of payroll outsourcing services market vendors

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1 Executive Summary

2 Market Landscape

  • 2.1 Market ecosystem
    • Exhibit 01: Parent market
    • Exhibit 02: Market characteristics
  • 2.2 Value chain analysis
    • Exhibit 03: Value chain analysis

3 Market Sizing

  • 3.1 Market definition
    • Exhibit 04: Offerings of vendors included in the market definition
  • 3.2 Market segment analysis
    • Exhibit 05: Market segments
  • 3.3 Market size 2020
    • 3.4 Market outlook: Forecast for 2020 - 2025
      • Exhibit 06: Global - Market size and forecast 2020 - 2025 ($ million)
      • Exhibit 07: Global market: Year-over-year growth 2020 - 2025 (%)

    4 Five Forces Analysis

    • 4.1 Five forces summary
      • Exhibit 08: Five forces analysis 2020 & 2025
    • 4.2 Bargaining power of buyers
      • Exhibit 09: Bargaining power of buyers
    • 4.3 Bargaining power of suppliers
      • Exhibit 10: Bargaining power of suppliers
    • 4.4 Threat of new entrants
      • Exhibit 11: Threat of new entrants
    • 4.5 Threat of substitutes
      • Exhibit 12: Threat of substitutes
    • 4.6 Threat of rivalry
      • Exhibit 13: Threat of rivalry
    • 4.7 Market condition
      • Exhibit 14: Market condition - Five forces 2020

    5 Market Segmentation by Product

    • 5.1 Market segments
      • Exhibit 15: Product - Market share 2020-2025 (%)
    • 5.2 Comparison by Product
      • Exhibit 16: Comparison by Product
    • 5.3 Hybrid - Market size and forecast 2020-2025
      • Exhibit 17: Hybrid - Market size and forecast 2020-2025 ($ million)
      • Exhibit 18: Hybrid - Year-over-year growth 2020-2025 (%)
    • 5.4 Fully outsourced - Market size and forecast 2020-2025
      • Exhibit 19: Fully outsourced - Market size and forecast 2020-2025 ($ million)
      • Exhibit 20: Fully outsourced - Year-over-year growth 2020-2025 (%)
    • 5.5 Market opportunity by Product
      • Exhibit 21: Market opportunity by Product

    6 Market Segmentation by Application

    • 6.1 Market segments
      • Exhibit 22: Application - Market share 2020-2025 (%)
    • 6.2 Comparison by Application
      • Exhibit 23: Comparison by Application
    • 6.3 Mid-market - Market size and forecast 2020-2025
      • Exhibit 24: Mid-market - Market size and forecast 2020-2025 ($ million)
      • Exhibit 25: Mid-market - Year-over-year growth 2020-2025 (%)
    • 6.4 National - Market size and forecast 2020-2025
      • Exhibit 26: National - Market size and forecast 2020-2025 ($ million)
      • Exhibit 27: National - Year-over-year growth 2020-2025 (%)
    • 6.5 Multinational - Market size and forecast 2020-2025
      • Exhibit 28: Multinational - Market size and forecast 2020-2025 ($ million)
      • Exhibit 29: Multinational - Year-over-year growth 2020-2025 (%)
    • 6.6 Market opportunity by Application
      • Exhibit 30: Market opportunity by Application

    7 Customer landscape

    8 Geographic Landscape

    • 8.1 Geographic segmentation
      • Exhibit 32: Market share by geography 2020-2025 (%)
    • 8.2 Geographic comparison
      • Exhibit 33: Geographic comparison
    • 8.3 North America - Market size and forecast 2020-2025
      • Exhibit 34: North America - Market size and forecast 2020-2025 ($ million)
      • Exhibit 35: North America - Year-over-year growth 2020-2025 (%)
    • 8.4 Europe - Market size and forecast 2020-2025
      • Exhibit 36: Europe - Market size and forecast 2020-2025 ($ million)
      • Exhibit 37: Europe - Year-over-year growth 2020-2025 (%)
    • 8.5 APAC - Market size and forecast 2020-2025
      • Exhibit 38: APAC - Market size and forecast 2020-2025 ($ million)
      • Exhibit 39: APAC - Year-over-year growth 2020-2025 (%)
    • 8.6 South America - Market size and forecast 2020-2025
      • Exhibit 40: South America - Market size and forecast 2020-2025 ($ million)
      • Exhibit 41: South America - Year-over-year growth 2020-2025 (%)
    • 8.7 MEA - Market size and forecast 2020-2025
      • Exhibit 42: MEA - Market size and forecast 2020-2025 ($ million)
      • Exhibit 43: MEA - Year-over-year growth 2020-2025 (%)
    • 8.8 Key leading countries
      • Exhibit 44: Key leading countries
    • 8.9 Market opportunity by geography
      • Exhibit 45: Market opportunity by geography ($ million)

    9 Drivers, Challenges, and Trends

    • 9.1 Market drivers
      • 9.2 Market challenges
        • Exhibit 46: Impact of drivers and challenges
      • 9.3 Market trends

        10 Vendor Landscape

        • 10.1 Competitive scenario
          • 10.2 Overview
            • Exhibit 47: Vendor landscape
          • 10.3 Landscape disruption
            • Exhibit 48: Landscape disruption
            • Exhibit 49: Industry risks

          11 Vendor Analysis

          • 11.1 Vendors covered
            • Exhibit 50: Vendors covered
          • 11.2 Market positioning of vendors
            • Exhibit 51: Market positioning of vendors
          • 11.3 Accenture Plc
            • Exhibit 52: Accenture Plc - Overview
            • Exhibit 53: Accenture Plc - Business segments
            • Exhibit 54: Accenture Plc - Key offerings
            • Exhibit 55: Accenture Plc - Segment focus
          • 11.4 Automatic Data Processing Inc.
            • Exhibit 56: Automatic Data Processing Inc. - Overview
            • Exhibit 57: Automatic Data Processing Inc. - Business segments
            • Exhibit 58: Automatic Data Processing Inc. - Key offerings
            • Exhibit 59: Automatic Data Processing Inc. - Segment focus
          • 11.5 Deloitte Touche Tohmatsu Ltd.
            • Exhibit 60: Deloitte Touche Tohmatsu Ltd. - Overview
            • Exhibit 61: Deloitte Touche Tohmatsu Ltd. - Business segments
            • Exhibit 62: Deloitte Touche Tohmatsu Ltd.- Key news
            • Exhibit 63: Deloitte Touche Tohmatsu Ltd. - Key offerings
            • Exhibit 64: Deloitte Touche Tohmatsu Ltd. - Segment focus
          • 11.6 HP Inc.
            • Exhibit 65: HP Inc. - Overview
            • Exhibit 66: HP Inc. - Business segments
            • Exhibit 67: HP Inc.- Key news
            • Exhibit 68: HP Inc. - Key offerings
            • Exhibit 69: HP Inc. - Segment focus
          • 11.7 Infosys Ltd.
            • Exhibit 70: Infosys Ltd. - Overview
            • Exhibit 71: Infosys Ltd. - Business segments
            • Exhibit 72: Infosys Ltd.- Key news
            • Exhibit 73: Infosys Ltd. - Key offerings
            • Exhibit 74: Infosys Ltd. - Segment focus
          • 11.8 International Business Machines Corp.
            • Exhibit 75: International Business Machines Corp. - Overview
            • Exhibit 76: International Business Machines Corp. - Business segments
            • Exhibit 77: International Business Machines Corp. - Key offerings
            • Exhibit 78: International Business Machines Corp. - Segment focus
          • 11.9 Paycom Software Inc.
            • Exhibit 79: Paycom Software Inc. - Overview
            • Exhibit 80: Paycom Software Inc. - Product and service
            • Exhibit 81: Paycom Software Inc. - Key offerings
          • 11.10 The Access Group
            • Exhibit 82: The Access Group - Overview
            • Exhibit 83: The Access Group - Product and service
            • Exhibit 84: The Access Group - Key offerings
          • 11.11 Wipro Ltd.
            • Exhibit 85: Wipro Ltd. - Overview
            • Exhibit 86: Wipro Ltd. - Business segments
            • Exhibit 87: Wipro Ltd.- Key news
            • Exhibit 88: Wipro Ltd. - Key offerings
            • Exhibit 89: Wipro Ltd. - Segment focus
          • 11.12 Workday Inc.
            • Exhibit 90: Workday Inc. - Overview
            • Exhibit 91: Workday Inc. - Business segments
            • Exhibit 92: Workday Inc.- Key news
            • Exhibit 93: Workday Inc. - Key offerings

          12 Appendix

          • 12.1 Scope of the report
            • 12.2 Currency conversion rates for US$
              • Exhibit 94: Currency conversion rates for US$
            • 12.3 Research methodology
              • Exhibit 95: Research Methodology
              • Exhibit 96: Validation techniques employed for market sizing
              • Exhibit 97: Information sources
            • 12.4 List of abbreviations
              • Exhibit 98: List of abbreviations

            Research Framework

            Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.

            TechnavioINFORMATION SOURCES

            Primary sources

            • Manufacturers and suppliers
            • Channel partners
            • Industry experts
            • Strategic decision makers

            Secondary sources

            • Industry journals and periodicals
            • Government data
            • Financial reports of key industry players
            • Historical data
            • Press releases
            Technavio

            TechnavioDATA ANALYSIS

            Data Synthesis

            • Collation of data
            • Estimation of key figures
            • Analysis of derived insights

            Data Validation

            • Triangulation with data models
            • Reference against proprietary databases
            • Corroboration with industry experts
            Technavio

            TechnavioREPORT WRITING

            Qualitative

            • Market drivers
            • Market challenges
            • Market trends
            • Five forces analysis

            Quantitative

            • Market size and forecast
            • Market segmentation
            • Geographical insights
            • Competitive landscape
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            Payroll Outsourcing Services Market market growth will increase by $6.15 mn during 2021-2025.
            The payroll outsourcing services market market is expected to grow at a CAGR of 5.72% during 2021-2025.
            Technavio has segmented the payroll outsourcing services market market by product (Hybrid and Fully outsourced) ,application (Mid-market, National, Multinational, South America, and MEA) , and geography (North America, Europe, APAC, South America, and MEA).
            Accenture Plc, Automatic Data Processing Inc., Deloitte Touche Tohmatsu Ltd., HP Inc., Infosys Ltd., International Business Machines Corp., Paycom Software Inc., The Access Group, Wipro Ltd., Workday Inc. are a few of the key vendors in the payroll outsourcing services market market.
            North America will register the highest growth rate of 54% among the other regions. Therefore, the payroll outsourcing services market market in North America is expected to garner significant business opportunities for the vendors during the forecast period.
            The key factors driving the payroll outsourcing services market market growth are:
            • Growing need for payroll cost visibility
            • Rise of multi-country and centralized outsourcing models
            The payroll outsourcing services market market vendors should focus on grabbing business opportunities from the hybrid segment as it accounted for the largest market share in the base year.
            • What are the key global market and the regional market share?
            • What are the revenue-generating key market segments?
            • What are the key factors driving and challenging this market’s growth?
            • Who are the key market vendors and their growth strategies?
            • What are the latest trends influencing the growth of this market?
            • What are the variables influencing the market growth in the primary regions?
            • What are the factors influencing the growth of the parent market?
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            • Covid-19 impact and recovery analysis
            • Data on revenue-generating market segments
            • Details on the market shares of various regions
            • Five-force market analysis

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