Introduction

Historically, many multinational companies (MNCs) outsourced their payroll locally. However, increased globalization made MNCs look for an integrated approach that can provide better management insight and control while achieving the cost-reduction objectives through standardization and centralization. Multi-country payroll outsourcing (MCPO) presents buyers a strategic choice with a strong value proposition. Not surprisingly, given the emergence of innovative solutions and suppliers’ maturing capabilities for handling complexities inherent in managing multi-country payroll requirements, the market for MCPO really took off in the last few years.

This report examines the MCPO market and provides insights, analyses and implications for stakeholders along four key dimensions: market overview and key business drivers, buyer adoption, solution and transaction characteristics, and supplier landscape. It will help buyers understand the value proposition of MCPO, the MCPO market maturity, the different technology solutions, and the supplier landscape. It will help suppliers gain insight into the buyer market, understand their competitive landscape, and identify the key partnership trends in the market.

Scope

• Multi-country payroll deals in which more than 3,000 employees are covered
• Deals where either a “selective” or “comprehensive” outsourcing model was deployed
• Suppliers that offer payroll as a stand-alone outsourcing service

Contents

This research report provides a comprehensive coverage of the MCPO market and analyzes it across various dimensions such as market overview and key business drivers, buyer adoption, solution and transaction characteristics, and supplier landscape. It also provides case examples of successful MCPO partnerships in the market. Some of the findings in this report, among others, are:

• From a multi-country perspective, MCPO is ahead of other stand-alone HR process outsourcing markets on the maturity curve
• There are multiple key drivers behind MCPO; the relative importance of these drivers has changed in the current economic environment
• EMEA and Asia Pacific are the most frequently included regions in MCPO deals
• There are three technology solutions prevalent in the MCPO market – single platform, integrated hybrid, and aggregated solution
• Buyers outsource core payroll sub-processes in almost all the MCPO deals. Among support sub-processes, they frequently include the contact center
• Coopetition is prevalent in the MCPO market. Suppliers partner with each other as well as with local payroll providers