It’s official.
New Research on the outsourcing market 2016-2020 has revealed that payroll outsourcing is the fastest-growing segment of the global human resource outsourcing (HRO) market. The report from Infiniti Research indicates that organisations are rapidly adopting payroll services to achieve cost reduction.
The in-depth market analysis used inputs from industry experts and covers the market landscape and its growth prospects over the coming years, and findings revealed a growth in either an outsourced single process or the entire payroll service to enhance the existing function.
Managing payroll in-house involves high costs. The research revealed that organisations that maintain an in-house team for tasks such as payroll, time and attendance, workforce administration, and benefits administration spend 20% more than organisations that outsource the same functions.
The majority of payroll outsourcing functions are related to finance and accounting (F&A), human capital management (HCM), and shared service centres, with the HR department using outsourced services more commonly than any other department.
Analysts forecast the global payroll outsourcing market to grow at a compound annual growth rate (CAGR) of 4.4% during the period 2016-2020.
