Menu ×

BFSI & OTHER SERVICES

Payroll and HR Solutions and Services Market Analysis by Solution (Software, Services); by Deployment Model (On-Premises, Cloud-based and Hybrid); by Enterprise Size {Large Enterprises and Small and Medium Enterprises (SMEs)}; and by Industry (BFSI, IT and Telecom, and Others) – Global Supply & Demand Analysis & Opportunity Outlook 2022-2031

  • Text Size:

Inflation And Looming Recession to Haunt Businesses:

In 2022 & 2023, market players expected to sail in rough waters; might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain. Further, U.S. economy is expected to grow merely by 3% in 2022.

Request Insights

Purchasing power in the couPurchasing power in the country is expected to fell nearly by 2.5%. On the other hand, European countries to see the worst coming in the form of energy crisis especially in upcoming winters!! Right after COVID-19, inflation has started gripping the economies across the globe. Higher than anticipated inflation, especially in western world had raised concerns for national banks and financial institutions to control the economic loss and safeguard the interest of the businesses. Increased interest rates, strong USD inflated oil prices, looming prices for gas and energy resources due to Ukraine-Russia conflict, China economic slowdown (~4% in 2022) disrupting the production and global supply chain and other factors would impact each industry negatively.                                                         Request Insights

Read More

IN THE NEWS

  • Oracle Corporation - launched Software as a Service (SaaS) Payroll solution that will that enables organizations to easily configure payroll to meet both local and international pay rules in a single system. It will help intergovernmental and nongovernmental organizations (IGOs and NGOs) to efficiently pay any employee, anywhere, in any currency, without being subjected to the local complex pay rules and policies.
  • IBM Corporation - expanded its alliance with EY and established a new Talent Center of Excellence (COE). The COE create data-driven AI and hybrid cloud solutions to provide broad talent, HR, mobility, and payroll transformation services to businesses around the world.

Global Payroll and HR Solutions and Services Market Size, Forecast, and Trend Highlights Over 2022 - 2031

Base Year

2021

Forecast Year

2022-2031

CAGR

~7%

Base Year Market Size (2021)

~USD 26 Billion

Forecast Year Market Size (2031)

~USD 58 Billion

The global payroll and HR solutions and services market is estimated to garner a revenue of ~USD 58 billion by the end of 2031 by growing at a CAGR of ~7% over the forecast period, i.e., 2022 – 2031. Further, the market generated a revenue of ~USD 26 billion in the year 2021. The growth of the market can primarily be attributed to the growing digitalization of businesses and services worldwide. It is estimated that, the total spending on global digital transformation (DX) will reach to ~USD 1.8 trillion by the end of 2022.

Payroll-and-HR-Solutions-and-Services-Market-Size

Get more information on this reportDownload Sample PDF

Companies, in present times demand a more proactive, strategic role from the human resource department. The process of paying salary to a company employee has many complexities as it involves synchronized collaboration between multiple departments such as HR, finance, team in-charge of leaves and attendance and insurance. Mistakes and errors can cause serious consequences, affecting employee morale and productivity. So as to reduce errors and improve the organizational efficiency, demand for payroll and HR solutions and services is on the rise amongst various industries including the information technology (IT) industry, which in turn, is expected to create massive revenue generation opportunities for the key players operating in the global payroll and HR solutions and services market during the forecast period. It has been found that, the global information technology industry accounted for more than USD 5 trillion in 2020.

Global Payroll and HR Solutions and Services Market: Growth Drivers and Challenges

Growth Drivers

  • Growing Workforce – Increasing demand for payroll and HR solutions and services helps to manage the workforce with automated management processes, automatic updates, reduction of errors in resolving various issues and other time-saving features. It was observed that, worldwide there were more than 3 billion employed people in 2022.
  • Rising Use of Artificial Intelligence (AI) powered HR Solutions – The payroll and HR functions efficiently by handling payroll data, removing the chances of errors due to human effort. It was found that, the private investment in AI accounted for more than USD 92 billion in 2021.
  • Increasing Employment of Machine Learning in HR Analytics In 2019, the total funding allocated to machine learning worldwide was more than USD 28 billion.
  • Upsurge in the number of SMEs – Escalating the implementation of IT by SMEs and automation of HR processes through various software, solutions and services. In 2021, there were approximately 332 million SMEs worldwide. 

 Challenges

  • Lack of Awareness about Payroll and HR Solutions and Services
  • High Cost Involved in Adoption of Automation Technologies
  • Complexities Associated with Legacy System Integration

The global payroll and HR solutions and services market is segmented and analyzed for demand and supply by deployment model into on-premises, cloud-based, hybrid. Amongst these segments, the cloud-based segment is anticipated to garner the largest revenue by the end of 2031, backed by the organizations opting for cloud-based payroll and HR solutions and services allowing management processes to be automated along with the surge in the data stored in cloud worldwide. For instance, approximately 25% of the global data was stored in cloud in 2015, which is projected to reach about 50% by 2025.

Major Macro-Economic Indicators Impacting the Market Growth

Global-Research-and-Development-Expenditure

The never-ending growth in internet accessibility around the world along with numerous technological advancements comprising 5G, blockchain, cloud services, Internet of Things (IoT), and Artificial Intelligence (AI) among others have significantly boosted the economic growth in the last two decades. As of April 2021, there were more than 4.5 billion users that were actively using the internet globally. Moreover, the growth in ICT sector has significantly contributed towards GDP growth, labor productivity, and R&D spending among other transformations of economies in different nations of the globe. Furthermore, the production of goods and services in the ICT sector is also contributing to the economic growth and development. As per the statistics in the United Nations Conference on Trade and Development’s database, the ICT good exports (% of total good exports) globally grew from 10.816 in 2015 to 11.536 in 2019. In 2019, these exports in Hong Kong SAR, China amounted to 56.65%, 25.23% in East Asia & Pacific, 26.50% in China, 25.77% in Korea, Rep., 8.74% in the United States, and 35.01% in Vietnam. These are some of the important factors that are boosting the growth of the market.

Global Payroll and HR Solutions and Services Market Regional Synopsis

Regionally, the global payroll and HR solutions and services market is studied into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. Amongst these markets, the market in North America is projected to hold the largest market share by the end of 2031, backed by the presence of a strong IT network in the region, as well as growing number of employees opting for remote jobs along with the rising work from home and hybrid work culture. For instance, according to the data which included responses of ~25000 Americans, more than 55% have the opportunity to work from home at least 1 day in a week with ~35% having five days a week option to work from home, in 2022.

Payroll-and-HR-Solutions-and-Services-Market

The global payroll and HR solutions and services market is further classified on the basis of region as follows:

  • North America (U.S. & Canada) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
  • Latin America (Brazil, Mexico, Argentina, Rest of Latin America) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
  • Europe (U.K., Germany, France, Italy, Spain, Hungary, Belgium, Netherlands & Luxembourg, NORDIC (Finland, Sweden, Norway, Denmark), Ireland, Switzerland, Austria, Poland, Turkey, Russia, Rest of Europe), Poland, Turkey, Russia, Rest of Europe) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
  • Asia-Pacific (China, India, Japan, South Korea, Singapore, Indonesia, Malaysia, Australia, New Zealand, Rest of Asia-Pacific) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook
  • Middle East and Africa (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa) Market size, Y-O-Y growth, Market Players Analysis & Opportunity Outlook

Market Segmentation

Our in-depth analysis of the global payroll and HR solutions and services market includes the following segments:

By Solution

  • Software
  • Services

By Deployment Model

  • On-premises
  • Cloud-based
  • Hybrid

By Enterprise Size

  • Large Enterprises
  • SMEs

By Industry

  • BFSI
  •  IT and Telecom
  • Energy and Utilities
  • Manufacturing
  • Healthcare
  • Retail
 
Top Featured Companies Dominating the Global Payroll and HR Solutions and Services Market
  • IBM Corporation

    • Company Overview
    • Business Strategy
    • Key Product Offerings
    • Financial Performance
    • Key Performance Indicators
    • Risk Analysis
    • Recent Development
    • Regional Presence
    • SWOT Analysis
  • Oracle Corporation
  • Ceridian HCM Holding, Inc.
  • Automatic Data Processing, Inc.
  • SAP
  • Paychex, Inc.
  • TMF Group
  • Ramco Systems Limited
  • International Integrated Systems
  • HR Solutions

FREQUENTLY ASKED QUESTIONS


Related Reports


Disclaimer | Privacy Policy | Terms & Conditions | LOB

Copyright © 2022 Research Nester. All Rights Reserved