The outsourcing of payrolls continues to grow across the globe as more companies realise the need to have specialists attend to the processing and financial transactions associated with paying employees and contractors.
The global Payroll Outsourcing market size isprojected to reach USD 13930 million by 2027, from USD 9231 million in 2020, at a CAGR of 6.1% during 2021-2027. (2021 Market Watch)
This growth is being driven by several factors: The advent of COVID has forced companies to rethink the need to have office-bound staff attending to non-core activities that can just aseasily be done remotely. Unfortunately, many remote workers to not have access to the tools and security systems demanded in payroll processing. Rather than take the risk themselves, companies are turning to specialist payroll companies for these services.
Furthermore, the advent of remote work means that companies can now draw talent from a wider pool of applicants, including talents that are based in foreign countries. Paying foreign workers is a complex business fraught with many risks and it is advisable to use domain specialists.
1. Cost Efficiencies: Benefit from the economies ofscale and avoid expensive licencing costs. Pay onlyfor what you use.
2. Access to Skills: Retain the services of domain specialists and ensure continuity of expertise in themanagement of payrolls.
3. Latest Technology: Get access to the latest technology without having to secure your own andavoid expensive licencing costs.
4. Improve Compliance: Having your payroll run byprofessionals outside of your company improves regulatory compliance to taxation laws.
5. Reduce Risk: Outsourcing enables separation ofduties and significantly reduces the propensity forfraudulent activities.
6. Save Time: Doing payroll correctly can absorb time that can be spent more effectively on core activities such as serving your clients and doing sales.
7. Improve Security: Avoid the embarrassment and penalties that may arise out of salary information falling into the hands of the wrong people .