Global Payroll Outsourcing Market

Payroll Outsourcing Market by Types (Full-managed Outsourcing and Co-managed Outsourcing), Applications (National, Multinational, and Mid-market), End-users (IT & Telecommunication, BFSI, Consumer & Industrial Products, Healthcare, Public Sector, and Others), and Regions (Asia Pacific, North America, Latin America, Europe and Middle East & Africa) - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast 2022 – 2030

  • Report ID: BFSI-4073
  • Author: Growth Market Reports
  • Rating: 4.8
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  • No. Of Pages: 156
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The global payroll outsourcing market size was valued at around USD 9.5 billion in 2021 and is estimated to reach around USD 15 billion by 2030, expanding at a CAGR of around 5% during the forecast period, 2022 – 2030. The growth of the market is attributed to the increasing use of technology and cloud-based payroll services.


Global Payroll Outsourcing Market Summary

Payroll refers to that compensation paid by a company to its employees for their work on a given date or for a set of period. It includes information of employees to be paid, tracking of hours worked, calculation of salaries and wages, calculation and addition of bonuses, generation of payroll reports, and fulfillment of taxation laws applicable in different countries. Carrying out the process of payrolls can be taxing to companies in terms of cost, time, and energy. Therefore, companies prefer to outsource the payroll services. Payroll outsourcing refers to usage of third-party organizations or sources to manage payroll administrative and compliance functions. Payroll outsourcing assists companies in saving cost and time, reducing the need for purchasing and maintaining appropriate software packages, and in-housed trained payroll staff.
Growing geographical expansion of businesses is one of the key factors contributing to rising demand for payroll outsourcing. Outsourcing of payroll aids companies to deal with foreign tax legislations and avoid potential penalties. Additionally, increasing adoption of digital services such as cloud, big data, and business analytics is expected to boost the demand for payroll outsourcing. Due to lockdown, social distancing, and travel restrictions, several companies and organizations adopted work-from-home facility in the COVID-19 pandemic situation, which facilitated the expansion of digital payroll services. These factors fuel the global payroll outsourcing market.

Market Trends, Drivers, Restraints, and Opportunities

  • Growing need of payroll management is expected to drive the payroll outsourcing market during the forecast period.
  • Increasing demand for Multi-Country Payroll Outsourcing (MCPO) services, which facilitates businesses and companies to track employee payroll processes across different countries, is anticipated to boost the global payroll outsourcing market in the coming years.
  • Shifting inclination of companies to hybrid or co-managed payroll outsourcing models is anticipated to boost the market during the forecast period.
  • Rising adoption of cloud-based payroll services for their benefits such as security, easy access, functionality, scalability, and low costs is anticipated to fuel the market.
  • Increasing demand for employee self-service for payroll outsourcing services is expected to drive the market in the coming years.
  • Rising cybersecurity threats is anticipated to hamper the growth of the market during the forecast period.
  • Constant regulatory changes in payroll outsourcing are expected to hinder the growth of the market.
  • Issues related to geographical transition of standard payroll process are anticipated to restrain the market during the forecast period.
  • Increasing adoption of cloud-based digital payroll services offer growth opportunities to key market players.

Scope of the Report

The report on the global payroll outsourcing market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Attributes

Details

Report Title

Payroll Outsourcing Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast

Base Year

2021

Historic Data

2019–2020

Forecast Period

2022–2030

Segmentation

Types (Full-managed Outsourcing and Co-managed Outsourcing), Applications (National, Multinational, and Mid-market), and End-users (IT & Telecommunication, BFSI, Consumer & Industrial Products, Healthcare, Public Sector, and Others)

Regional Scope

Asia Pacific, North America, Latin America, Europe, and Middle East & Africa

Report Coverage

Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast

Key Players Covered in the Report

Accenture PLC; Infosys Limited; CGI Group, Inc.; International Business Machines (IBM) Corporations; Xerox Holdings Corporation; Excellerate HRO; IRIS Software Group Limited; Wipro Limited; Ramco Systems Limited; Deloitte Touche Tohmatsu Limited; Cegedim Services Resources Humaines SA; NGA Human Resources; Safeguard World International, Ltd.; Paychex, Inc.; Hewlett Packard Enterprise (HPE); Workday, Inc.; Automatic Data Processing (ADP), Inc.; and Others

Market Segment Insights

Co-managed outsourcing segment boosts the market

In terms of types, the market is bifurcated into full-managed outsourcing and co-managed outsourcing. The co-managed outsourcing segment is expected to drive the market during the forecast period, due to increasing risks of data theft. Co-managed outsourcing model facilitates companies and organizations to manage the quality of payroll process and reduce the cost of the process. It combines the captive structure and the external outsourcing structure to facilitate companies to streamline and improve their payroll process.


Global Payroll Outsourcing Market by Types

Multi-national segment holds a large market share

On the basis of applications, the market is divided into national, international, and multi-national. The multi-national segment is estimated to boost the market during the forecast period, as it aids companies and organizations to manage vast data related to their employees. The mid-market segment is projected to expand during the forecast period, due to increasing adoption of affordable and accessible digital outsourcing services by mid-market companies and enterprises.

IT & Telecommunication segment drives the market

Based on end-users, the market is segregated into IT & telecommunication, BFSI, consumer & industrial products, healthcare, public sector, and others. The IT & telecommunication segment holds a large share of the market, owing to growing size of IT & telecommunication sector. Payroll outsourcing aid companies and organizations to collect and manage increasing data and oversee its privacy. Rising BFSI and healthcare sectors are expected to spur the market during the forecast period.

North America dominates the market

On the basis of regions, the market is segmented into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market in North America holds a large share of the global market, due to increasing influence of big data, automated processes, business analytics, and cloud deployment models. The market in Asia Pacific is expected to expand rapidly during the forecast period, as several key market players are launching products in the region.


Global Payroll Outsourcing Market by Regions

Segments

The global payroll outsourcing market has been segmented on the basis of

Types
  • Full-managed Outsourcing
  • Co-managed Outsourcing

Applications
  • National
  • Multinational
  • Mid-market

End-users
  • IT & Telecommunication
  • BFSI
  • Consumer & Industrial Products
  • Healthcare
  • Public Sector
  • Others

Regions
  • Asia Pacific
  • North America
  • Latin America
  • Europe
  • Middle East & Africa

Key Players
  • Accenture PLC
  • Infosys Limited
  • CGI Group, Inc.
  • International Business Machines (IBM) Corporations
  • Xerox Holdings Corporation
  • Excellerate HRO
  • IRIS Software Group Limited
  • Wipro Limited
  • Ramco Systems Limited
  • Deloitte Touche Tohmatsu Limited
  • Cegedim Services Resources Humaines SA
  • NGA Human Resources
  • Safeguard World International, Ltd.
  • Paychex, Inc.
  • Hewlett Packard Enterprise (HPE)
  • Workday, Inc.
  • Automatic Data Processing (ADP), Inc.
  • Others

Competitive Landscape

The global payroll outsourcing market is highly competitive with the presence of key players such as Accenture PLC; Infosys Limited; CGI Group, Inc.; International Business Machines (IBM) Corporation; Xerox Holdings Corporation; Excellerate HRO; IRIS Software Group Limited; Wipro Limited; Ramco Systems Limited; Deloitte Touche Tohmatsu Limited; Cegedim Services Resources Humaines SA; NGA Human Resources; Safeguard World International, Ltd.; Paychex, Inc.; Hewlett Packard Enterprise (HPE); Workday, Inc.; Automatic Data Processing (ADP), Inc.; and others, who use business strategies such as mergers, acquisitions, partnerships, collaborations, and product launches to dominate the market. For example, in 2022, IRIS Software Group Limited acquired Paycheck Plus, an Ireland-based payroll service provider, to enhance its payroll outsourcing services in Ireland. In May 2022, Automatic Data Processing (ADP), Inc. bought payroll outsourcing business of Sage South Africa, a South Africa-based software company.

Global Payroll Outsourcing Market by Key Players

1. Executive Summary
2. Assumptions and Acronyms Used
3. Research Methodology
4. Payroll Outsourcing Market Overview
  4.1. Introduction
     4.1.1. Market Taxonomy
     4.1.2. Market Definition
  4.2. Macro-Economic Factors
     4.2.1. Industry Outlook
  4.3. Payroll Outsourcing Market Dynamics
     4.3.1. Market Drivers
     4.3.2. Market Restraints
     4.3.3. Opportunity
     4.3.4. Market Trends
  4.4. Payroll Outsourcing Market - Supply Chain
  4.5. Global Payroll Outsourcing Market Forecast
     4.5.1. Payroll Outsourcing Market Size (US$ Mn) and Y-o-Y Growth
     4.5.2. Payroll Outsourcing Market Size (000’ Units) and Y-o-Y Growth
     4.5.3. Payroll Outsourcing Market Absolute $ Opportunity
5. Global Payroll Outsourcing Market Analysis and Forecast by Types
  5.1. Market Trends
  5.2. Introduction
     5.2.1. Basis Point Share (BPS) Analysis by Types
     5.2.2. Y-o-Y Growth Projections by Types
  5.3. Payroll Outsourcing Market Size and Volume Forecast by Types
     5.3.1. Full-managed Outsourcing
     5.3.2. Co-managed Outsourcing
  5.4. Absolute $ Opportunity Assessment by Types
  5.5. Market Attractiveness/Growth Potential Analysis by Types
6. Global Payroll Outsourcing Market Analysis and Forecast by Applications
  6.1. Market Trends
  6.2. Introduction
     6.2.1. Basis Point Share (BPS) Analysis by Applications
     6.2.2. Y-o-Y Growth Projections by Applications
  6.3. Payroll Outsourcing Market Size and Volume Forecast by Applications
     6.3.1. National
     6.3.2. Multinational
     6.3.3. Mid-market
  6.4. Absolute $ Opportunity Assessment by Applications
  6.5. Market Attractiveness/Growth Potential Analysis by Applications
7. Global Payroll Outsourcing Market Analysis and Forecast by End Users
  7.1. Market Trends
  7.2. Introduction
     7.2.1. Basis Point Share (BPS) Analysis by End Users
     7.2.2. Y-o-Y Growth Projections by End Users
  7.3. Payroll Outsourcing Market Size and Volume Forecast by End Users
     7.3.1. IT & Telecommunication
     7.3.2. BFSI
     7.3.3. Consumer & Industrial Products
     7.3.4. Healthcare
     7.3.5. Public Sector
     7.3.6. Others
  7.4. Absolute $ Opportunity Assessment by End Users
  7.5. Market Attractiveness/Growth Potential Analysis by End Users
8. Global Payroll Outsourcing Market Analysis and Forecast by Region
  8.1. Market Trends
  8.2. Introduction
     8.2.1. Basis Point Share (BPS) Analysis by Region
     8.2.2. Y-o-Y Growth Projections by Region
  8.3. Payroll Outsourcing Market Size and Volume Forecast by Region
     8.3.1. North America
     8.3.2. Latin America
     8.3.3. Europe
     8.3.4. Asia Pacific
     8.3.5. Middle East and Africa (MEA)
  8.4. Absolute $ Opportunity Assessment by Region
  8.5. Market Attractiveness/Growth Potential Analysis by Region
  8.6. Global Payroll Outsourcing Demand Share Forecast, 2019-2026
9. North America Payroll Outsourcing Market Analysis and Forecast
  9.1. Introduction
     9.1.1. Basis Point Share (BPS) Analysis by Country
     9.1.2. Y-o-Y Growth Projections by Country
  9.2. North America Payroll Outsourcing Market Size and Volume Forecast by Country
     9.2.1. U.S.
     9.2.2. Canada
  9.3. Absolute $ Opportunity Assessment by Country
  9.4. North America Payroll Outsourcing Market Size and Volume Forecast by Types
     9.4.1. Full-managed Outsourcing
     9.4.2. Co-managed Outsourcing
  9.5. Basis Point Share (BPS) Analysis by Types
  9.6. Y-o-Y Growth Projections by Types
  9.7. North America Payroll Outsourcing Market Size and Volume Forecast by Applications
     9.7.1. National
     9.7.2. Multinational
     9.7.3. Mid-market
  9.8. Basis Point Share (BPS) Analysis by Applications
  9.9. Y-o-Y Growth Projections by Applications
  9.10. North America Payroll Outsourcing Market Size and Volume Forecast by End Users
     9.10.1. IT & Telecommunication
     9.10.2. BFSI
     9.10.3. Consumer & Industrial Products
     9.10.4. Healthcare
     9.10.5. Public Sector
     9.10.6. Others
  9.11. Basis Point Share (BPS) Analysis by End Users
  9.12. Y-o-Y Growth Projections by End Users
  9.13. Market Attractiveness/Growth Potential Analysis
     9.13.1. By Country
     9.13.2. By Product Type
     9.13.3. By Application
  9.14. North America Payroll Outsourcing Demand Share Forecast, 2019-2026
10. Latin America Payroll Outsourcing Market Analysis and Forecast
  10.1. Introduction
     10.1.1. Basis Point Share (BPS) Analysis by Country
     10.1.2. Y-o-Y Growth Projections by Country
     10.1.3. Latin America Average Pricing Analysis
  10.2. Latin America Payroll Outsourcing Market Size and Volume Forecast by Country
      10.2.1. Brazil
      10.2.2. Mexico
      10.2.3. Rest of Latin America
   10.3. Absolute $ Opportunity Assessment by Country
  10.4. Latin America Payroll Outsourcing Market Size and Volume Forecast by Types
     10.4.1. Full-managed Outsourcing
     10.4.2. Co-managed Outsourcing
  10.5. Basis Point Share (BPS) Analysis by Types
  10.6. Y-o-Y Growth Projections by Types
  10.7. Latin America Payroll Outsourcing Market Size and Volume Forecast by Applications
     10.7.1. National
     10.7.2. Multinational
     10.7.3. Mid-market
  10.8. Basis Point Share (BPS) Analysis by Applications
  10.9. Y-o-Y Growth Projections by Applications
  10.10. Latin America Payroll Outsourcing Market Size and Volume Forecast by End Users
     10.10.1. IT & Telecommunication
     10.10.2. BFSI
     10.10.3. Consumer & Industrial Products
     10.10.4. Healthcare
     10.10.5. Public Sector
     10.10.6. Others
  10.11. Basis Point Share (BPS) Analysis by End Users
  10.12. Y-o-Y Growth Projections by End Users
  10.13. Market Attractiveness/Growth Potential Analysis
     10.13.1. By Country
     10.13.2. By Product Type
     10.13.3. By Application
  10.14. Latin America Payroll Outsourcing Demand Share Forecast, 2019-2026
11. Europe Payroll Outsourcing Market Analysis and Forecast
  11.1. Introduction
     11.1.1. Basis Point Share (BPS) Analysis by Country
     11.1.2. Y-o-Y Growth Projections by Country
     11.1.3. Europe Average Pricing Analysis
  11.2. Europe Payroll Outsourcing Market Size and Volume Forecast by Country
     11.2.1. Germany
     11.2.2. France
     11.2.3. Italy
     11.2.4. U.K.
     11.2.5. Spain
     11.2.6. Russia
     11.2.7. Rest of Europe
  11.3. Absolute $ Opportunity Assessment by Country
  11.4. Europe Payroll Outsourcing Market Size and Volume Forecast by Types
     11.4.1. Full-managed Outsourcing
     11.4.2. Co-managed Outsourcing
  11.5. Basis Point Share (BPS) Analysis by Types
  11.6. Y-o-Y Growth Projections by Types
  11.7. Europe Payroll Outsourcing Market Size and Volume Forecast by Applications
     11.7.1. National
     11.7.2. Multinational
     11.7.3. Mid-market
  11.8. Basis Point Share (BPS) Analysis by Applications
  11.9. Y-o-Y Growth Projections by Applications
  11.10. Europe Payroll Outsourcing Market Size and Volume Forecast by End Users
     11.10.1. IT & Telecommunication
     11.10.2. BFSI
     11.10.3. Consumer & Industrial Products
     11.10.4. Healthcare
     11.10.5. Public Sector
     11.10.6. Others
  11.11. Basis Point Share (BPS) Analysis by End Users
  11.12. Y-o-Y Growth Projections by End Users
  11.13. Market Attractiveness/Growth Potential Analysis
     11.13.1. By Country
     11.13.2. By Product Type
     11.13.3. By Application
  11.14. Europe Payroll Outsourcing Demand Share Forecast, 2019-2026
12. Asia Pacific Payroll Outsourcing Market Analysis and Forecast
  12.1. Introduction
     12.1.1. Basis Point Share (BPS) Analysis by Country
     12.1.2. Y-o-Y Growth Projections by Country
     12.1.3. Asia Pacific Average Pricing Analysis
  12.2. Asia Pacific Payroll Outsourcing Market Size and Volume Forecast by Country
     12.2.1. China
     12.2.2. Japan
     12.2.3. South Korea
     12.2.4. India
     12.2.5. Australia
     12.2.6. Rest of Asia Pacific (APAC)
  12.3. Absolute $ Opportunity Assessment by Country
  12.4. Asia Pacific Payroll Outsourcing Market Size and Volume Forecast by Types
     12.4.1. Full-managed Outsourcing
     12.4.2. Co-managed Outsourcing
  12.5. Basis Point Share (BPS) Analysis by Types
  12.6. Y-o-Y Growth Projections by Types
  12.7. Asia Pacific Payroll Outsourcing Market Size and Volume Forecast by Applications
     12.7.1. National
     12.7.2. Multinational
     12.7.3. Mid-market
  12.8. Basis Point Share (BPS) Analysis by Applications
  12.9. Y-o-Y Growth Projections by Applications
  12.10. Asia Pacific Payroll Outsourcing Market Size and Volume Forecast by End Users
     12.10.1. IT & Telecommunication
     12.10.2. BFSI
     12.10.3. Consumer & Industrial Products
     12.10.4. Healthcare
     12.10.5. Public Sector
     12.10.6. Others
  12.11. Basis Point Share (BPS) Analysis by End Users
  12.12. Y-o-Y Growth Projections by End Users
  12.13. Market Attractiveness/Growth Potential Analysis
     12.13.1. By Country
     12.13.2. By Product Type
     12.13.3. By Application
  12.14. Asia Pacific Payroll Outsourcing Demand Share Forecast, 2019-2026
13. Middle East & Africa Payroll Outsourcing Market Analysis and Forecast
  13.1. Introduction
     13.1.1. Basis Point Share (BPS) Analysis by Country
     13.1.2. Y-o-Y Growth Projections by Country
     13.1.3. Middle East & Africa Average Pricing Analysis
  13.2. Middle East & Africa Payroll Outsourcing Market Size and Volume Forecast by Country
     13.2.1. Saudi Arabia
     13.2.2. South Africa
     13.2.3. UAE
     13.2.4. Rest of Middle East & Africa (MEA)
  13.3. Absolute $ Opportunity Assessment by Country
  13.4. Middle East & Africa Payroll Outsourcing Market Size and Volume Forecast by Types
     13.4.1. Full-managed Outsourcing
     13.4.2. Co-managed Outsourcing
  13.5. Basis Point Share (BPS) Analysis by Types
  13.6. Y-o-Y Growth Projections by Types
  13.7. Middle East & Africa Payroll Outsourcing Market Size and Volume Forecast by Applications
     13.7.1. National
     13.7.2. Multinational
     13.7.3. Mid-market
  13.8. Basis Point Share (BPS) Analysis by Applications
  13.9. Y-o-Y Growth Projections by Applications
  13.10. Middle East & Africa Payroll Outsourcing Market Size and Volume Forecast by End Users
     13.10.1. IT & Telecommunication
     13.10.2. BFSI
     13.10.3. Consumer & Industrial Products
     13.10.4. Healthcare
     13.10.5. Public Sector
     13.10.6. Others
  13.11. Basis Point Share (BPS) Analysis by End Users
  13.12. Y-o-Y Growth Projections by End Users
  13.13. Market Attractiveness/Growth Potential Analysis
     13.13.1. By Country
     13.13.2. By Product Type
     13.13.3. By Application
  13.14. Middle East & Africa Payroll Outsourcing Demand Share Forecast, 2019-2026
14. Competition Landscape
  14.1. Global Payroll Outsourcing Market: Market Share Analysis
  14.2. Payroll Outsourcing Distributors and Customers
  14.3. Payroll Outsourcing Market: Competitive Dashboard
  14.4. Company Profiles (Details: Overview, Financials, Developments, Strategy)
     14.4.1. Accenture PLC
     14.4.2. Infosys Limited
     14.4.3. CGI Group, Inc.
     14.4.4. International Business Machines (IBM) Corporations
     14.4.5. Xerox Holdings Corporation
     14.4.6. Excellerate HRO
     14.4.7. IRIS Software Group Limited
     14.4.8. Wipro Limited
     14.4.9. Ramco Systems Limited
     14.4.10. Deloitte Touche Tohmatsu Limited
The global payroll outsourcing market has been segmented on the basis of

Types
  • Full-managed Outsourcing
  • Co-managed Outsourcing

Applications
  • National
  • Multinational
  • Mid-market

End-users
  • IT & Telecommunication
  • BFSI
  • Consumer & Industrial Products
  • Healthcare
  • Public Sector
  • Others

Regions
  • Asia Pacific
  • North America
  • Latin America
  • Europe
  • Middle East & Africa

Key Players
  • Accenture PLC
  • Infosys Limited
  • CGI Group, Inc.
  • International Business Machines (IBM) Corporations
  • Xerox Holdings Corporation
  • Excellerate HRO
  • IRIS Software Group Limited
  • Wipro Limited
  • Ramco Systems Limited
  • Deloitte Touche Tohmatsu Limited
  • Cegedim Services Resources Humaines SA
  • NGA Human Resources
  • Safeguard World International, Ltd.
  • Paychex, Inc.
  • Hewlett Packard Enterprise (HPE)
  • Workday, Inc.
  • Automatic Data Processing (ADP), Inc.
  • Others

The global payroll outsourcing market is highly competitive with the presence of key players such as Accenture PLC; Infosys Limited; CGI Group, Inc.; International Business Machines (IBM) Corporation; Xerox Holdings Corporation; Excellerate HRO; IRIS Software Group Limited; Wipro Limited; Ramco Systems Limited; Deloitte Touche Tohmatsu Limited; Cegedim Services Resources Humaines SA; NGA Human Resources; Safeguard World International, Ltd.; Paychex, Inc.; Hewlett Packard Enterprise (HPE); Workday, Inc.; Automatic Data Processing (ADP), Inc.; and others, who use business strategies such as mergers, acquisitions, partnerships, collaborations, and product launches to dominate the market. For example, in 2022, IRIS Software Group Limited acquired Paycheck Plus, an Ireland-based payroll service provider, to enhance its payroll outsourcing services in Ireland. In May 2022, Automatic Data Processing (ADP), Inc. bought payroll outsourcing business of Sage South Africa, a South Africa-based software company.

Global Payroll Outsourcing Market by Key Players

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FAQ Section

Some frequently asked quetions about this report!

The market is estimated to register CAGR of around 5% during the forecast period.

The global payroll outsourcing market size was valued at around USD 9.5 billion in 2021 and is estimated to reach around USD 15 billion by 2030.

Multi-Country Payroll Outsourcing (MCPO) is a service, which aids businesses and companies to track employee payroll processes across different countries.

Payroll outsourcing refers to usage of third-party organizations or sources to manage payroll administrative and compliance functions.

North America dominates the global payroll outsourcing market.

Accenture PLC; Infosys Limited; CGI Group, Inc.; International Business Machines (IBM) Corporations; Xerox Holdings Corporation; and Excellerate HRO are some of the key players in the global payroll outsourcing market.