Melbourne, Australia (PRWEB) August 26, 2013
The Payroll and Other Office Administrative Services industry has benefited from the private sector trend towards outsourcing business services, although the sluggish general economy has contained the industry's performance since the late 2000s. According to IBISWorld industry analyst Sebastian Chia, “the industry generates the bulk of its revenue from the payroll processing and billing segments, which have been the primary beneficiaries of the outsourcing boom”. The industry relies heavily on business sentiment and spending, as these influence an organisation's choice to outsource non-core activities to specialist service providers. The global financial crisis contributed to a decline in demand for industry services. This decline was, however, offset by the efficiencies from outsourcing non-core services and advancements in technology that made the services cheaper and improved accessibility for clients.
IBISWorld expects industry revenue to increase by an annualised 3.7% over the five years through 2013-14, to total $2.7 billion, including growth of 2.1% over the current year. Industry employment is forecast to grow by an annualised 2.3% over the period to reach more than 26,000 people working across 11,750 enterprises in 2013-14. The Payroll and Other Office Administrative Services industry has a low level of concentration and is comprised of many small-scale businesses, which are often one or two-person operations servicing narrow regional markets. The most significant company operating in the industry is Automatic Data Processing Limited. “The industry's future looks promising given the projected resurgence of business sentiment over the next five years, which will bring with it increased labour participation and a larger pool of potential clients,” says Chia.
A key growth driver will be continued increases in business-process outsourcing, particularly as organisations decide to focus on core operations and externalise laborious and time-consuming administrative services to create efficiencies. The benefits of this model are now well established in the Australian business community. Growth in technology and increased automation will boost industry profit and attract new participants looking to capitalise on new segments and opportunities.
For more information, visit IBISWorld’s Payroll and Other Administrative Services in Australia industry report page.
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IBISWorld industry Report Key Topics
his industry includes companies that provide a range of everyday office administrative services such as clerical, billing and record-keeping, and payroll services on a contract or fee basis. These companies support the operation of a business but do not provide operating staff to carry out the complete operations of an organisation.
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.