Payroll outsourcing pegged to be worth $19.5bn by 2031
The global payroll outsourcing market is expected to reach $19.5 billion by 2031 while growing at a compound annual growth rate (CAGR) of 7.2 per cent from 2022 to 2031 according to Allied Market Research.
This growth is directly attributable to the effect of the Covid-19 pandemic, the report says. As firms adopt remote work arrangements several operations of human resources (HR) became a challenge. Companies resorted to third-party outsourcing to address this issue.
Data presented by the report shows that Europe held a significant share of the global payroll outsourcing market in 2021, accounting for two-fifths of the market.
“This is attributed to rise in need for real-time data access and the growth in usage of mobile and cloud-based applications in the area. However, the market across Asia-Pacific would showcase the highest CAGR of 9.7% from 2022 to 2031. This is attributed to the increase in disposable income due to rapid technology improvements, economies’ digitalization, and government efforts.” the report read.
The report named firms that are projected to be major players in the industry during the forecast period. Among them are ADP, Inc., CloudPay, Deloitte Touche Tohmatsu Limited, Guto and HCL Technologies Limited.
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