The industry is rebounding from the effects of the economic downturn
Melbourne, Australia (PRWEB) November 16, 2012
The Payroll and Bookkeeping Services industry in Australia has churned through challenging conditions over the past five years. Industry revenue is expected to grow marginally by an annualised 0.5% over the five years through 2012-13 to reach $2.16 billion. The trend towards outsourcing provided the most benefit to demand for payroll and bookkeeping services. According to IBISWorld industry analyst Aries Nuguid, “Australian businesses increasingly outsourced functions to the industry so they could focus on their core competencies”. The greater interconnectedness of businesses through online platforms has also supported the trend toward outsourcing. This has compounded with the higher number of businesses in Australia.
However, higher unemployment slowed down work volume and revenue growth. More importantly, poor business sentiment caused the industry's customers to become more price-sensitive. Consequently, competition within the industry intensified, which hurt prices, revenue and profit margins. Industry revenue is expected to grow 1.9% in 2012-13, which represents the industry's continued path to recovery. “Businesses will continue to increasingly outsource their payroll and bookkeeping functions,” Nuguid adds. Meanwhile, higher business confidence will mean reduced price competition. However, higher unemployment will dampen demand for industry services.
The Payroll and Bookkeeping Services industry in Australia is expected to flourish over the next five years. The number of Australian business will grow and boost demand for industry services. Furthermore, these businesses are more likely to outsource and support revenue growth. Business sentiment is also expected to improve, which will lead to less price sensitivity among the industry's customers. The Payroll and Bookkeeping Services Industry has a low level of market share concentration. The two largest players are Automatic Data Processing and Talent2 International. The industry is fragmented and is populated by many small players. However, there is a great disparity between the market share concentration in respective industry segments.
For more information, visit IBISWorld’s Payroll and Bookkeeping Services report in Australia industry page.
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IBISWorld industry Report Key Topics
Businesses in the industry provide outsourced payroll services for clients' employees. Basic bookkeeping services are also part of the industry. Firms in the industry do not include tax preparation businesses or certified public accountants (CPAs). Companies that retail payroll and bookkeeping software are not part of the industry.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.