Payroll Outsourcing Services Market Size to Grow by USD 6.15 bn


According to the report “Payroll Outsourcing Services Market by Product, Application, and Geography – Forecast and Analysis 2021-2025″, the market witnessed a YOY growth of 5.47% in 2021 and a CAGR of 5.72% during the forecast period. The report is segmented by product (hybrid and fully outsourced), application (mid-market, national, and multinational), and geography (North AmericaEurope, APAC, South America, and MEA).

Vendor Insights

The payroll outsourcing services market is fragmented, and the vendors are deploying growth strategies such as forming strategic partnerships to compete in the market. 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., and Workday Inc. among others. The key offerings of some of the vendors are listed below:

  • Accenture Plc – The company offers different types of payroll outsourcing services including intelligent talent and HR operations services.
  • Automatic Data Processing Inc. – The company offers different types of payroll outsourcing for Indian and multinational businesses.
  • Deloitte Touche Tohmatsu Ltd. – The company offers different types of payroll outsourcing services including human resources and payroll services for business process solutions and service offerings.

Find additional highlights on the growth strategies adopted by vendors and their product offerings. Read a Sample Report.

Geographical Market Analysis

North America will provide maximum growth opportunities in payroll processing during the forecast period. According to our research, the region will contribute to 54% of the global market growth during the forecast period. Most organizations in North America rely on outsourcing service providers. North America will experience steady growth in the mid-market and transatlantic contracts segments covering both the US and European operations during the forecast period. Companies in North America seek payroll services from low-cost countries such as India.

Know more about this market’s geographical distribution along with a detailed analysis of the top regions. View our Report Snapshot

Key Segment Analysis

The payroll outsourcing services market share growth by the hybrid segment will be significant during the forecast period, as it enables organizations to maintain competence in terms of processes and quality while reducing costs and leveraging labor arbitrage simultaneously.

View a Sample: to know additional highlights and key points on various market segments and their impact in coming years.

Key Market Drivers & Challenges:

The growing need for payroll cost visibility is driving the growth of the payroll outsourcing services market. Globalization, the extension of manufacturing processes, and the widespread use of lean methodologies are driving the demand for payroll cost visibility. Clients generally prefer vendors with expertise in terms of domain and conforming to strict service level agreements. The primary focus includes providing a hassle-free environment for HR professionals to develop strategic activities rather than focusing 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.

The issues related to geographical transition will challenge the payroll outsourcing services market during the forecast period. The workforce of large organizations is generally spread globally. Phasing a standard process across geographies requires automation and expert teams. However, the task is difficult for companies, as they need to conform to regulation policies of certain regions. As a result, outsourcing service providers must establish a strong presence and a greater degree of centralization for clients to ensure streamlined operations. This has encouraged service providers to establish captive centers in respective countries to cut costs of payroll delivery.

Download a report sample for highlights on market drivers & challenges impacting the market.

Customize Your Report

Don’t miss out on the opportunity to speak to our analyst and know more insights about this market report. Our analysts can also help you customize this report according to your needs. Our analysts and industry experts will work directly with you to understand your requirements and provide you with customized data in a short amount of time.

We offer customization at the time of purchase. Speak to our Analyst now!

Related Reports:

Engineering Research and Development Services Market by End-user and Geography – Forecast and Analysis 2022-2026

Predictive Analytics Market by Deployment and Geography – Forecast and Analysis 2022-2026

Payroll Outsourcing Services Market Scope

Report Coverage


Page number


Base year


Forecast period


Growth momentum & CAGR

Accelerate at a CAGR of 5.72%

Market growth 2021-2025

USD 6.15 billion

Market structure


YoY growth (%)


Regional analysis

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 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.


For more such Updates Log on to


Please enter your comment!
Please enter your name here