Multi-Country Payroll Outsourcing (MCPO) Annual Report 2019 – Persistent Growth Amidst Evolving Propositions

15 Oct 2018
by Anil Vijayan, Priyanka Mitra

Multi-Country Payroll Outsourcing (MCPO) is one of the fastest growing markets in the HR outsourcing space. The drivers for MCPO adoption are slowly witnessing a shift from the traditional to the next-generation ones, which include better employee experience, better insights through analytics, and access to next-generation digital solutions such as Artificial Intelligence (AI) and Robotic Process Automation (RPA). Although service providers have performed well with respect to the traditional drivers of cost reduction, process standardization, and compliance, buyers expect more in terms of next-generation technologies and strategic support. 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 research, we analyze the MCPO market across various dimensions:

  • MCPO market overview
  • Buyer adoption trends
  • Solution and transaction trends
  • Service provider landscape


  • Deals where “payroll calculation (gross-to-net)” has been necessarily outsourced
  • Deals that have at least two countries in scope
  • All industries and geographies


This report provides comprehensive coverage of the 2018 MCPO market and analyzes it across various dimensions such as market overview, buyer adoption trends, solution & transaction trends, and service provider landscape. Some of the findings in this report are:

  • The MCPO market grew rapidly at a rate of ~20% from 2016 to 2017
  • With growing awareness of the MCPO value proposition and increasing provider maturity, this momentum is likely to continue for the next couple of years
  • Buyers headquartered in North America and Europe, the two most mature markets, are the leading adopters of MCPO globally. Rising adoption is seen from the emerging markets of Asia Pacific and Latin America
  • The market has witnessed strong adoption by small-sized MNCs, which are spread across two to five countries. The large market segment has also witnessed a resurgence of activity, with many large enterprises venturing into large multi-continent deals
  • The small market segment witnessed a dip in the average deal size, while the mid- to large-sized segments witnessed a significant increase due to rise in large multi-country deals
  • ADP followed by NGA HR and TMF Group dominate the MCPO market in terms of market revenue. The three companies cumulatively constitute over 50% of the total market revenue


Human Resources Outsourcing (HRO)


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