In the industry, the global human resources outsourcing market will reach $162 billion by the year 2015 with payroll outsourcing playing a major role. The Global Industry Analysts released a research report concerning the continuous growth in the HR outsourcing industry. The report speculates that with the global economic downturn, the cost reduction has become paramount for business with focus on smaller investments in outsourcing single processes as well as enhancing the significance of HR outsourcing. The payroll is just one of the areas that are more commonly outsourced due to the inherent complexity of the function and the required accuracy as it is carried out. A study by PriceWeterhouse Coopers in conjunction with ADP specifically focused on the true, hidden costs that can be associated with payroll and HR administration when done in-house as compared to when outsourced with ADP or comparably to the other outsourcing companies.
The organizations that retain payroll, workforce administration time and attendance and benefits administrationin-house spend on average 18 percent more than smaller sized organizations using the software vendors spending 32 percent. The report further states 8that despite speculation stemming from significant technological advances in payroll administration software costs for payroll administration has increased since 2003.
In the past few days, increase in acquisitions and partnership among software and services providers that have also been observed in th e past few days. The workforce management solutions providers, it has acquired payroll and consulting services providers to the restaurant and catering industries. The payroll computing services in an effort to expand its presence in the hospitality industry. The company is seeking to reinforce its strategic commitment to expand market share on the Valiant platform of the web based workforce management products. A company Xcel HR announced that it has acquired Astra HR, achieving rock and solid support for its payroll platform.
The country’s insurance regulator, the insurance regulatory and development authority, one of the country that may soon see marked increase in payroll outsourcing is outsourcing destination India. The organization stipulated that insurers must take the necessary steps to ensure that the company’s outsourcing activities should not result in internal control, business conduct or reputaion that is being compromised. The IRDA identified payroll management among the other as a non core activity and it will likely lead to more business from insurance companies that are complying with the IRDA and restricting outsourcing activities of core functions. The Payroll administration service will seeing increase market growth, it is also likely see major advancements in process as competition also increases
REFERENCE:
http://www.blog.infinit-o.com/payroll-outsourcing-gaining-momentum/
