The Multi-Country Payroll Outsourcing (MCPO) market is one of the fastest growing markets in the HR outsourcing space. This growth is largely driven by buyers’ need for better control and visibility of their payroll operations across multiple countries, compliance with regulations, to control costs, and more recently, to improve employees’ experience with the payroll process. North America- and Europe-based buyers are the primary adopters; however, geographies such as Latin America and Asia Pacific are fast catching up. In addition to the core payroll technology, greater emphasis is also placed on analytics and automation to drive better business outcomes. With employee experience becoming a key driver among enterprises, there is an increased focus on improving and enhancing the User Interface (UI) of the payroll solutions. As the market evolves, service providers need to continue to innovate and differentiate themselves to maintain a strong foothold in this market.

In this report, we analyze the MCPO market across various dimensions:

• Market overview and key regional trends
• Buyer adoption trends
• Emerging solution trends
• Service provider landscape

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 research provides a comprehensive coverage of the 2016 MCPO market and analyzes it across various dimensions such as market overview, buyer adoption trends, solution trends, and service provider landscape. Key insights into the outsourcing models prevalent in the market and the service provider delivery footprint have also been provided.

Some of the key findings in this report are:

• The MCPO market grew rapidly at a CAGR of ~19-23% from 2014 to 2016 to cross US$1.5 billion. With the rising understanding of the MCPO value proposition and increasing provider maturity, this momentum is likely to continue for the next couple of years
• North America and Europe are relatively more mature and bigger MCPO markets, and they accounted for a large chunk of the global deal activity. Asia Pacific and Latin America are emerging as strong MCPO markets on their own. Local buyers in these geographies, especially Asia Pacific, are playing an important role in shaping these markets
• In terms of buyer size, smaller firms continue to dominate the MCPO market adoption through simple deals spanning a few countries
• Inclusion of core payroll subprocesses continue to see high traction, while, inclusion of ancillary processes such as contact center and time & attendance has increased
• Analytics, automation, and enhancing employee experience through UI improvements are the few key areas of investment in terms of technology enhancements. Other major areas of investment include enhancing in-country and multi-language capabilities and meeting compliance needs

Membership(s)

Human Resources Outsourcing (HRO)