According to Technavio, the global payroll outsourcing services market size is estimated to grow by USD 7,087.99 million from 2022 to 2027. The market is estimated to grow at a CAGR of 5.8% during the forecast period. North America held the largest share of the global market in 2022, and the market in the region is estimated to witness an incremental growth of 54%.
Payroll outsourcing services market – Parent Market Analysis
Technavio categorizes the global payroll outsourcing services market as a part of the global data processing and outsourced services market, which covers companies offering IT consulting and system integration services, application services, electronic data processing services, business process outsourcing services, infrastructure services, and Internet services.
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Payroll outsourcing services market – Five Forces
The global cloud data warehouse market is fragmented, and the five forces analysis covers–
- Bargaining Power of Buyers
- The threat of New Entrants
- Threat of Rivalry
- Bargaining Power of Suppliers
- Threat of Substitutes
- Interpretation of porter’s five models helps to strategize the business, for entire details – buy the report!
Payroll outsourcing services market – Customer Landscape
The report includes the market’s adoption lifecycle, from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Payroll outsourcing services market – Segmentation Assessment
Segment Overview
Technavio has segmented the market based on product (hybrid and fully outsourced), type (mid-market, national, and multinational), and geography (North America, Europe, APAC, South America, and Middle East and Africa).
- The market growth in the hybrid segment will be significant during the forecast period. Hybrid outsourcing offers various advantages to end-users. It allows organizations to maintain competence in terms of processes and quality while reducing costs and leveraging labor arbitrage simultaneously. Also, it helps organizations in adopting country-specific payroll management services. Many such advantages are driving the growth of the segment.
Geography Overview
By geography, the global payroll outsourcing services market is segmented into North America, Europe, APAC, South America, and Middle East and Africa. The report provides actionable insights and estimates the contribution of all regions to the growth of the global payroll outsourcing services market.
- North America is estimated to contribute 54% to the growth of the global market during the forecast period. The rising adoption of low-cost payroll outsourcing services and the increased funding toward the development of infrastructure and connectivity across end-user industries are driving the growth of the regional market.
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Payroll outsourcing services market – Market Dynamics
Key factor driving market growth
- The market is driven by the growing need for payroll cost visibility.
- The expansion of manufacturing processes across geographies and the growing adoption of lean methodologies are increasing the demand for payroll visibility.
- It provides a hassle-free environment for HR professionals to drive and develop strategic activities and reduce the time spent on administration and transactional duties.
- The growing demand is driving vendors to develop solutions that promote self-service by employees in a bid to reduce administrative workloads.
- All these factors are driving the growth of the market.
Leading trends influencing the market
- The rise of multi-country and centralized outsourcing models is identified as one of the major trends in the market.
- Many organizations, especially multinational companies are adopting payroll outsourcing strategies to maintain a competitive edge.
- They are outsourcing payroll outsourcing services to companies that can handle all the recruitment functions using sophisticated methods such as benchmarking, best practices, and process improvement.
- This trend among companies is expected to drive the demand for payroll outsourcing services market during the forecast period.
Major challenges hindering market growth
- Data security risks are expected to challenge the growth of the market over the forecast period.
- Outsourcing business operations to service providers increases the risk of data breaches and cyber theft.
- Outsourced technical support companies require data centralization and universal access to maintain seamless operations. This increases the risk of data leakages regarding sensitive information such as names, social security numbers, addresses, salary details, health, and biometrics records of employees.
- Organizations must choose service providers that conform to strict compliance and regulation policies regarding information sharing.
- Such challenges are reducing the growth potential in the market.
Driver, Trend, and Challenges are the factor of market dynamics which states about consequences & sustainability of the businesses, find some insights from a sample report!
What are the key data covered in this payroll outsourcing services market report?
- CAGR of the market during the forecast period
- Detailed information on factors that will drive the growth of the payroll outsourcing services market between 2023 and 2027
- Precise estimation of the size of the payroll outsourcing services market size and its contribution to the market in focus on the parent market
- Accurate predictions about upcoming trends and changes in consumer behavior
- Growth of the payroll outsourcing services market industry across North America, Europe, APAC, South America, and Middle East and Africa
- A thorough analysis of the market’s competitive landscape and detailed information about vendors
- Comprehensive analysis of factors that will challenge the growth of payroll outsourcing services market vendors
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Related Reports:
- The regulatory affairs outsourcing market size is expected to increase by USD 4.63 billion from 2021 to 2026, and the market’s growth momentum will accelerate at a CAGR of 12.15%. The growth of the pharmaceutical industry is notably driving the regulatory affairs outsourcing market growth, although factors such as delay in contractual obligations and upgrading new technologies may impede the market growth.
- The call center outsourcing market size in Europe is expected to increase by USD 3.73 billion from 2021 to 2026, and the market’s growth momentum will accelerate at a CAGR of 3.53%. The increase in call center outsourcing by IT and telecom service providers is notably driving the call center outsourcing market growth in Europe, although factors such as shifting focus on developing countries as call center destinations may impede the market growth.
Payroll Outsourcing Services Market Scope
|
Report Coverage |
Details |
|
Page number |
170 |
|
Base year |
2022 |
|
Historic period |
2017-2021 |
|
Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.8% |
|
Market growth 2023-2027 |
USD 7087.99 million |
|
Market structure |
Fragmented |
|
YoY growth 2022-2023 (%) |
4.36 |
|
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
|
Performing market contribution |
North America at 54% |
|
Key countries |
US, China, Australia, UK, and Germany |
|
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
|
Key companies profiled |
Acara Solutions India, Accenture Plc, Alight Solutions LLC, Automatic Data Processing Inc, Ceridian HCM Holding Inc., Complete Payroll Solutions, Deloitte Touche Tohmatsu Ltd., Workday Inc., Wipro Ltd., The Access Group, TalentPro, Safeguard World International LLC, Ramco Systems Ltd., Paycor Inc., Paycom Software Inc., Intuit Inc., International Business Machines Corp., Infosys Ltd., Hexaware Technologies Ltd., and Hewlett Packard Enterprise Co. |
|
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, and market condition analysis for the forecast period. |
|
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
|
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
Table of contents:
1 Executive Summary
- 1.1 Market overview
- Exhibit 01: Executive Summary – Chart on Market Overview
- Exhibit 02: Executive Summary – Data Table on Market Overview
- Exhibit 03: Executive Summary – Chart on Global Market Characteristics
- Exhibit 04: Executive Summary – Chart on Market by Geography
- Exhibit 05: Executive Summary – Chart on Market Segmentation by Product
- Exhibit 06: Executive Summary – Chart on Market Segmentation by Type
- Exhibit 07: Executive Summary – Chart on Incremental Growth
- Exhibit 08: Executive Summary – Data Table on Incremental Growth
- Exhibit 09: Executive Summary – Chart on Vendor Market Positioning
2 Market Landscape
- 2.1 Market ecosystem
- Exhibit 10: Parent market
- Exhibit 11: Market Characteristics
3 Market Sizing
- 3.1 Market definition
- Exhibit 12: Offerings of vendors included in the market definition
- 3.2 Market segment analysis
- Exhibit 13: Market segments
- 3.3 Market size 2022
- 3.4 Market outlook: Forecast for 2022-2027
- Exhibit 14: Chart on Global – Market size and forecast 2022-2027 ($ million)
- Exhibit 15: Data Table on Global – Market size and forecast 2022-2027 ($ million)
- Exhibit 16: Chart on Global Market: Year-over-year growth 2022-2027 (%)
- Exhibit 17: Data Table on Global Market: Year-over-year growth 2022-2027 (%)
4 Historic Market Size
- 4.1 Global payroll outsourcing services market 2017 – 2021
- Exhibit 18: Historic Market Size – Data Table on Global payroll outsourcing services market 2017 – 2021 ($ million)
- 4.2 Product Segment Analysis 2017 – 2021
- Exhibit 19: Historic Market Size – Product Segment 2017 – 2021 ($ million)
- 4.3 End-user Segment Analysis 2017 – 2021
- Exhibit 20: Historic Market Size – End-user Segment 2017 – 2021 ($ million)
- 4.4 Geography Segment Analysis 2017 – 2021
- Exhibit 21: Historic Market Size – Geography Segment 2017 – 2021 ($ million)
- 4.5 Country Segment Analysis 2017 – 2021
- Exhibit 22: Historic Market Size – Country Segment 2017 – 2021 ($ million)
5 Five Forces Analysis
- 5.1 Five forces summary
- Exhibit 23: Five forces analysis – Comparison between 2022 and 2027
- 5.2 Bargaining power of buyers
- Exhibit 24: Chart on Bargaining power of buyers – Impact of key factors 2022 and 2027
- 5.3 Bargaining power of suppliers
- Exhibit 25: Bargaining power of suppliers – Impact of key factors in 2022 and 2027
- 5.4 Threat of new entrants
- Exhibit 26: Threat of new entrants – Impact of key factors in 2022 and 2027
- 5.5 Threat of substitutes
- Exhibit 27: Threat of substitutes – Impact of key factors in 2022 and 2027
- 5.6 Threat of rivalry
- Exhibit 28: Threat of rivalry – Impact of key factors in 2022 and 2027
- 5.7 Market condition
- Exhibit 29: Chart on Market condition – Five forces 2022 and 2027
6 Market Segmentation by Product
- 6.1 Market segments
- Exhibit 30: Chart on Product – Market share 2022-2027 (%)
- Exhibit 31: Data Table on Product – Market share 2022-2027 (%)
- 6.2 Comparison by Product
- Exhibit 32: Chart on Comparison by Product
- Exhibit 33: Data Table on Comparison by Product
- 6.3 Hybrid – Market size and forecast 2022-2027
- Exhibit 34: Chart on Hybrid – Market size and forecast 2022-2027 ($ million)
- Exhibit 35: Data Table on Hybrid – Market size and forecast 2022-2027 ($ million)
- Exhibit 36: Chart on Hybrid – Year-over-year growth 2022-2027 (%)
- Exhibit 37: Data Table on Hybrid – Year-over-year growth 2022-2027 (%)
- 6.4 Fully outsourced – Market size and forecast 2022-2027
- Exhibit 38: Chart on Fully outsourced – Market size and forecast 2022-2027 ($ million)
- Exhibit 39: Data Table on Fully outsourced – Market size and forecast 2022-2027 ($ million)
- Exhibit 40: Chart on Fully outsourced – Year-over-year growth 2022-2027 (%)
- Exhibit 41: Data Table on Fully outsourced – Year-over-year growth 2022-2027 (%)
- 6.5 Market opportunity by Product
- Exhibit 42: Market opportunity by Product ($ million)
7 Market Segmentation by Type
- 7.1 Market segments
- Exhibit 43: Chart on Type – Market share 2022-2027 (%)
- Exhibit 44: Data Table on Type – Market share 2022-2027 (%)
- 7.2 Comparison by Type
- Exhibit 45: Chart on Comparison by Type
- Exhibit 46: Data Table on Comparison by Type
- 7.3 Mid-market – Market size and forecast 2022-2027
- Exhibit 47: Chart on Mid-market – Market size and forecast 2022-2027 ($ million)
- Exhibit 48: Data Table on Mid-market – Market size and forecast 2022-2027 ($ million)
- Exhibit 49: Chart on Mid-market – Year-over-year growth 2022-2027 (%)
- Exhibit 50: Data Table on Mid-market – Year-over-year growth 2022-2027 (%)
- 7.4 National – Market size and forecast 2022-2027
- Exhibit 51: Chart on National – Market size and forecast 2022-2027 ($ million)
- Exhibit 52: Data Table on National – Market size and forecast 2022-2027 ($ million)
- Exhibit 53: Chart on National – Year-over-year growth 2022-2027 (%)
- Exhibit 54: Data Table on National – Year-over-year growth 2022-2027 (%)
- 7.5 Multinational – Market size and forecast 2022-2027
- Exhibit 55: Chart on Multinational – Market size and forecast 2022-2027 ($ million)
- Exhibit 56: Data Table on Multinational – Market size and forecast 2022-2027 ($ million)
- Exhibit 57: Chart on Multinational – Year-over-year growth 2022-2027 (%)
- Exhibit 58: Data Table on Multinational – Year-over-year growth 2022-2027 (%)
- 7.6 Market opportunity by Type
- Exhibit 59: Market opportunity by Type ($ million)
8 Customer Landscape
- 8.1 Customer landscape overview
- Exhibit 60: Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria
9 Geographic Landscape
- 9.1 Geographic segmentation
- Exhibit 61: Chart on Market share by geography 2022-2027 (%)
- Exhibit 62: Data Table on Market share by geography 2022-2027 (%)
- 9.2 Geographic comparison
- Exhibit 63: Chart on Geographic comparison
- Exhibit 64: Data Table on Geographic comparison
- 9.3 North America – Market size and forecast 2022-2027
- Exhibit 65: Chart on North America – Market size and forecast 2022-2027 ($ million)
- Exhibit 66: Data Table on North America – Market size and forecast 2022-2027 ($ million)
- Exhibit 67: Chart on North America – Year-over-year growth 2022-2027 (%)
- Exhibit 68: Data Table on North America – Year-over-year growth 2022-2027 (%)
- 9.4 Europe – Market size and forecast 2022-2027
- Exhibit 69: Chart on Europe – Market size and forecast 2022-2027 ($ million)
- Exhibit 70: Data Table on Europe – Market size and forecast 2022-2027 ($ million)
- Exhibit 71: Chart on Europe – Year-over-year growth 2022-2027 (%)
- Exhibit 72: Data Table on Europe – Year-over-year growth 2022-2027 (%)
- 9.5 APAC – Market size and forecast 2022-2027
- Exhibit 73: Chart on APAC – Market size and forecast 2022-2027 ($ million)
- Exhibit 74: Data Table on APAC – Market size and forecast 2022-2027 ($ million)
- Exhibit 75: Chart on APAC – Year-over-year growth 2022-2027 (%)
- Exhibit 76: Data Table on APAC – Year-over-year growth 2022-2027 (%)
- 9.6 South America – Market size and forecast 2022-2027
- Exhibit 77: Chart on South America – Market size and forecast 2022-2027 ($ million)
- Exhibit 78: Data Table on South America – Market size and forecast 2022-2027 ($ million)
- Exhibit 79: Chart on South America – Year-over-year growth 2022-2027 (%)
- Exhibit 80: Data Table on South America – Year-over-year growth 2022-2027 (%)
- 9.7 Middle East and Africa – Market size and forecast 2022-2027
- Exhibit 81: Chart on Middle East and Africa – Market size and forecast 2022-2027 ($ million)
- Exhibit 82: Data Table on Middle East and Africa – Market size and forecast 2022-2027 ($ million)
- Exhibit 83: Chart on Middle East and Africa – Year-over-year growth 2022-2027 (%)
- Exhibit 84: Data Table on Middle East and Africa – Year-over-year growth 2022-2027 (%)
- 9.8 US – Market size and forecast 2022-2027
- Exhibit 85: Chart on US – Market size and forecast 2022-2027 ($ million)
- Exhibit 86: Data Table on US – Market size and forecast 2022-2027 ($ million)
- Exhibit 87: Chart on US – Year-over-year growth 2022-2027 (%)
- Exhibit 88: Data Table on US – Year-over-year growth 2022-2027 (%)
- 9.9 UK – Market size and forecast 2022-2027
- Exhibit 89: Chart on UK – Market size and forecast 2022-2027 ($ million)
- Exhibit 90: Data Table on UK – Market size and forecast 2022-2027 ($ million)
- Exhibit 91: Chart on UK – Year-over-year growth 2022-2027 (%)
- Exhibit 92: Data Table on UK – Year-over-year growth 2022-2027 (%)
- 9.10 China – Market size and forecast 2022-2027
- Exhibit 93: Chart on China – Market size and forecast 2022-2027 ($ million)
- Exhibit 94: Data Table on China – Market size and forecast 2022-2027 ($ million)
- Exhibit 95: Chart on China – Year-over-year growth 2022-2027 (%)
- Exhibit 96: Data Table on China – Year-over-year growth 2022-2027 (%)
- 9.11 Germany – Market size and forecast 2022-2027
- Exhibit 97: Chart on Germany – Market size and forecast 2022-2027 ($ million)
- Exhibit 98: Data Table on Germany – Market size and forecast 2022-2027 ($ million)
- Exhibit 99: Chart on Germany – Year-over-year growth 2022-2027 (%)
- Exhibit 100: Data Table on Germany – Year-over-year growth 2022-2027 (%)
- 9.12 Australia – Market size and forecast 2022-2027
- Exhibit 101: Chart on Australia – Market size and forecast 2022-2027 ($ million)
- Exhibit 102: Data Table on Australia – Market size and forecast 2022-2027 ($ million)
- Exhibit 103: Chart on Australia – Year-over-year growth 2022-2027 (%)
- Exhibit 104: Data Table on Australia – Year-over-year growth 2022-2027 (%)
- 9.13 Market opportunity by geography
- Exhibit 105: Market opportunity by geography ($ million)
10 Drivers, Challenges, and Trends
- 10.1 Market drivers
- 10.2 Market challenges
- 10.3 Impact of drivers and challenges
- Exhibit 106: Impact of drivers and challenges in 2022 and 2027
- 10.4 Market trends
11 Vendor Landscape
- 11.1 Overview
- 11.2 Vendor landscape
- Exhibit 107: Overview on Criticality of inputs and Factors of differentiation
- 11.3 Landscape disruption
- Exhibit 108: Overview on factors of disruption
- 11.4 Industry risks
- Exhibit 109: Impact of key risks on business
12 Vendor Analysis
- 12.1 Vendors covered
- Exhibit 110: Vendors covered
- 12.2 Market positioning of vendors
- Exhibit 111: Matrix on vendor position and classification
- 12.3 Acara Solutions India
- Exhibit 112: Acara Solutions India – Overview
- Exhibit 113: Acara Solutions India – Product / Service
- Exhibit 114: Acara Solutions India – Key offerings
- 12.4 Accenture Plc
- Exhibit 115: Accenture Plc – Overview
- Exhibit 116: Accenture Plc – Business segments
- Exhibit 117: Accenture Plc – Key news
- Exhibit 118: Accenture Plc – Key offerings
- Exhibit 119: Accenture Plc – Segment focus
- 12.5 Alight Solutions LLC
- Exhibit 120: Alight Solutions LLC – Overview
- Exhibit 121: Alight Solutions LLC – Product / Service
- Exhibit 122: Alight Solutions LLC – Key offerings
- 12.6 Automatic Data Processing Inc
- Exhibit 123: Automatic Data Processing Inc – Overview
- Exhibit 124: Automatic Data Processing Inc – Business segments
- Exhibit 125: Automatic Data Processing Inc – Key news
- Exhibit 126: Automatic Data Processing Inc – Key offerings
- Exhibit 127: Automatic Data Processing Inc – Segment focus
- 12.7 Ceridian HCM Holding Inc.
- Exhibit 128: Ceridian HCM Holding Inc. – Overview
- Exhibit 129: Ceridian HCM Holding Inc. – Product / Service
- Exhibit 130: Ceridian HCM Holding Inc. – Key news
- Exhibit 131: Ceridian HCM Holding Inc. – Key offerings
- 12.8 Complete Payroll Solutions
- Exhibit 132: Complete Payroll Solutions – Overview
- Exhibit 133: Complete Payroll Solutions – Product / Service
- Exhibit 134: Complete Payroll Solutions – Key offerings
- 12.9 Deloitte Touche Tohmatsu Ltd.
- Exhibit 135: Deloitte Touche Tohmatsu Ltd. – Overview
- Exhibit 136: Deloitte Touche Tohmatsu Ltd. – Business segments
- Exhibit 137: Deloitte Touche Tohmatsu Ltd. – Key offerings
- Exhibit 138: Deloitte Touche Tohmatsu Ltd. – Segment focus
- 12.10 Hewlett Packard Enterprise Co.
- Exhibit 139: Hewlett Packard Enterprise Co. – Overview
- Exhibit 140: Hewlett Packard Enterprise Co. – Business segments
- Exhibit 141: Hewlett Packard Enterprise Co. – Key news
- Exhibit 142: Hewlett Packard Enterprise Co. – Key offerings
- Exhibit 143: Hewlett Packard Enterprise Co. – Segment focus
- 12.11 Hexaware Technologies Ltd.
- Exhibit 144: Hexaware Technologies Ltd. – Overview
- Exhibit 145: Hexaware Technologies Ltd. – Product / Service
- Exhibit 146: Hexaware Technologies Ltd. – Key offerings
- 12.12 Infosys Ltd.
- Exhibit 147: Infosys Ltd. – Overview
- Exhibit 148: Infosys Ltd. – Business segments
- Exhibit 149: Infosys Ltd. – Key news
- Exhibit 150: Infosys Ltd. – Key offerings
- Exhibit 151: Infosys Ltd. – Segment focus
- 12.13 International Business Machines Corp.
- Exhibit 152: International Business Machines Corp. – Overview
- Exhibit 153: International Business Machines Corp. – Business segments
- Exhibit 154: International Business Machines Corp. – Key news
- Exhibit 155: International Business Machines Corp. – Key offerings
- Exhibit 156: International Business Machines Corp. – Segment focus
- 12.14 Intuit Inc.
- Exhibit 157: Intuit Inc. – Overview
- Exhibit 158: Intuit Inc. – Business segments
- Exhibit 159: Intuit Inc. – Key offerings
- Exhibit 160: Intuit Inc. – Segment focus
- 12.15 Paycom Software Inc.
- Exhibit 161: Paycom Software Inc. – Overview
- Exhibit 162: Paycom Software Inc. – Product / Service
- Exhibit 163: Paycom Software Inc. – Key offerings
- 12.16 Paycor Inc.
- Exhibit 164: Paycor Inc. – Overview
- Exhibit 165: Paycor Inc. – Product / Service
- Exhibit 166: Paycor Inc. – Key offerings
- 12.17 Ramco Systems Ltd.
- Exhibit 167: Ramco Systems Ltd. – Overview
- Exhibit 168: Ramco Systems Ltd. – Business segments
- Exhibit 169: Ramco Systems Ltd. – Key offerings
- Exhibit 170: Ramco Systems Ltd. – Segment focus
13 Appendix
- 13.1 Scope of the report
- 13.2 Inclusions and exclusions checklist
- Exhibit 171: Inclusions checklist
- Exhibit 172: Exclusions checklist
- 13.3 Currency conversion rates for US$
- Exhibit 173: Currency conversion rates for US$
- 13.4 Research methodology
- Exhibit 174: Research methodology
- Exhibit 175: Validation techniques employed for market sizing
- Exhibit 176: Information sources
- 13.5 List of abbreviations
- Exhibit 177: List of abbreviations
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