Multi-Country Payroll Outsourcing (MCPO) – On the Verge of a Quantum Leap

8 May 2015
by Rajesh Ranjan



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

MCPO Market Size

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

Technology Framework


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

Page Count: 58