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Report Overview
The global payroll outsourcing market reached approximately USD 10.36 Billion in 2024. The market is projected to grow at a CAGR of 6.00% between 2025 and 2034, reaching a value of around USD 18.55 Billion by 2034.
2024
Base Year
2018-2024
Historical Period
2025-2034
Forecast Period
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In the year 2022, approximately 73% of businesses and organisations in the US utilised outsourced payrolling services for their companies.
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In the UK, 61% of businesses outsourced their payroll to an external company.
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Payroll outsourcing enables organisations to concentrate on their primary business activities, consequently enhancing productivity and minimising operational expenses.
Global Payroll Outsourcing Market Trends
Payroll processing is a complex and time-consuming task that involves numerous activities and requires meticulous attention to detail. From calculating wages and salaries to deducting taxes and issuing paychecks, payroll processing involves a multitude of responsibilities that can be overwhelming for businesses.
By opting for payroll outsourcing, companies can alleviate the burden of payroll processing and reduce operational costs. Outsourcing payroll activities to an external provider allows businesses to tap into the expertise and resources of professionals who specialise in payroll management. These providers have the necessary knowledge and experience to handle payroll tasks efficiently and accurately, ensuring compliance with all relevant laws and regulations.
By entrusting payroll activities to an external provider, employers can free up valuable time and resources that can be redirected toward their core business functions. This allows businesses to focus on their primary objectives and strategic initiatives, ultimately enhancing long-term efficiency and productivity. A significant trend observed in the global payroll outsourcing market is the ability of businesses to outsource their payroll services. Additionally, outsourced payroll companies benefit from enhanced technological capabilities, as they employ cloud-based systems to manage crucial data efficiently.
Payroll Outsourcing Market Report Snapshots
Payroll Outsourcing Market Size
Payroll Outsourcing Market Trends
Payroll Outsourcing Market Regional Analysis
*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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Key Questions Answered in the Report
In 2024, the market reached an approximate value of USD 10.36 Billion.
The market is estimated to grow at a CAGR of 6.00% between 2025 and 2034.
The market is estimated to witness a healthy growth during 2025-2034 to reach around USD 18.55 Billion by 2034.
The major market drivers include growing focus by organisations to minimise expenses, the rising utilisation of big data and business analytics in organisations, and evolving business environments.
The key trends aiding the market growth are technological advancements and the regional expansion of businesses.
The major regional markets are Europe, the Asia Pacific, Latin America, North America, and the Middle East and Africa.
Hyrid and fully outsourced are the different types of payroll outsourcing considered in the market report.
The major players in the market are IBM Corp., ADP, Inc., CloudPay Inc., Deloitte Touche Tohmatsu Limited, Infosys Ltd., KPMG Huazhen LLP, ZenPayroll, Inc. (Gusto), HCL Technologies Ltd., and HRMantra Software Private Limited, among others.
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