The Multi-Country Payroll Outsourcing (MCPO) market is one of the fastest growing markets within the HR Outsourcing space. It grew rapidly at a CAGR of approximately 20% from 2012 to 2014 to cross US$1.1 billion and is currently dominated by only a handful of service providers; this momentum is expected to continue in the coming years as well. While service providers are adopting innovative strategies to gain market share, different technology and partnership models exist in the market, and each offers its own unique value proposition. Value-added services, such as mobility, analytics, and online dashboards, are also gaining importance. Buyers need to evaluate the service provider’s broader offer spectrum and judge how it would fit into their organization’s need to drive maximum cost and business impact.
In this report, we analyze the MCPO market across various dimensions:
Market overview
Geography focus
Buyer adoption trends and solution characteristics
Service provider landscape
Technology and operating model
Scope of analysis
Deals that necessarily include the “payroll calculation (gross-to-net)” subprocess as part of the scope
Deals including at least two countries
Deals wherein services are provided to third-party clients
All industries and geographies
Content
This report covers the 2014 MCPO market comprehensively and provides geography-specific market growth rates, deal characteristics, and buyer profiles. Key insights have been provided into the outsourcing models prevalent in the market and the service provider delivery footprint.
Further, various technology models that are being operated by different classes of service providers have been delineated and each of the 16 MCPO service providers have been segmented into Leaders, Major Contenders, and Emerging Players on the Everest Group PEAK Matrix.
Some of the key findings in this report are:
The MCPO market has grown rapidly at a CAGR of 20% from 2012 to 2014 to cross US$1.1 billion. This momentum is expected to continue
While North America and Europe are the largest markets; Asia Pacific and Latin America are growing the fastest
More small firms are adopting MCPO through simple deals involving few countries
North America- and Europe-headquartered firms are the primary adopters of MCPO. However, they differ in their use of MCPO
HRO/BPO providers leverage their existing offshoring/nearshoring infrastructure for MCPO – a significant difference from the MCPO-focused providers
MCPO providers differ in their operational and technology framework in terms of the degree of use of self-country processing capability and in-country partners
Note: this report is from 2012. See our most recent R2R research report.
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