The global payroll offshoring and outsourcing industry is expected to hit 3.91 percent compound annual growth rate (CAGR) from 2013 to 2018, according to a recent analyst study published by Research and Markets. The report said that businesses all over the world see payroll outsourcing as a key strategy to stay relevant and competitive in an ever evolving market.
The study showed that companies want to reduce costs, and payroll outsourcing means not only more savings but scalable and reliable services and applications that can be accessed anytime. Buyers also want a well-run payroll system to retain employees and ensure effective and timely payroll processes.
Other reasons for outsourcing payroll functions include low cost, reduced work pressure and better quality services. One of the primary drivers of the growth is the accountability of payroll outsourcing providers that take responsibility and able to correct mistakes quickly, reducing the workload of in-house staff and allowing managers to focus on core activities.
The report also states that one of the biggest challenges of the global payroll outsourcing market is employee regulation and policies. Payroll outsourcing vendors analyze organizational data, calculate gross salaries, allowances, reimbursements, benefits and taxes.