This momentum is expected to continue in the coming years, driven by increasing market maturity and a general move toward consolidating global back-office HR processes.
DALLAS, Texas (PRWEB) May 18, 2015
The Multi-Country Payroll Outsourcing (MCPO) market—one of the fastest growing markets within the HR outsourcing space—witnessed a rapid growth of approximately 20 percent compound annual growth rate from 2012 to 2014 and is now worth more than US$1 billion annually, according to Everest Group, an advisor to business leaders on the next generation of global services.
This momentum is expected to continue in the coming years, driven by increasing market maturity and a general move toward consolidating global back-office HR processes. Service providers continue to adopt new technologies and develop partnerships to maximize their process and geographic coverage. Value-added and digital services such as mobility, analytics and online dashboards are also gaining in importance.
These results are explored in a recently published Everest Group report: “Multi-Country Payroll Outsourcing (MCPO) – On the Verge of a Quantum Leap.”
This report covers the MCPO market comprehensively and analyzes it across various dimensions such as market overview, geography focus, buyer adoption trends and solution characteristics, service provider landscape, and technology and operating models. (Everest Group defines MCPO as transferred ownership of some or all payroll subprocesses for multiple countries on an ongoing basis.)
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Other Key Findings
- While North America and Europe are the largest markets, Asia Pacific and Latin America are growing the fastest.
- More small firms are adopting MCPO through simple deals involving a few countries.
- North America- and Europe-headquartered firms are the primary adopters of MCPO. However, they differ in their use of MCPO.
- HRO/BPO providers leverage their existing offshoring/nearshoring infrastructure for MCPO – a significant difference from the MCPO-focused providers.
- MCPO providers differ in their operational and technology framework in terms of the degree of use of self-country processing capability and in-country partners.
“We expect the MCPO market to show good growth momentum in the coming years,” said Rajesh Ranjan, partner at Everest Group. “Notwithstanding the complexities of a large scale MCPO initiative, buyers increasingly realize that it offers a compelling and differentiated value proposition that goes beyond cost, and providers are demonstrating increased maturity and investments in their technology and operating models.”
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High-resolution graphics illustrating key takeaways from these reports can be included in news coverage, with attribution to Everest Group. Graphics include:
- Multi-country payroll is gaining global traction
- Single- and multi-country payroll: Similar in name only
- Multi-country payroll providers’ service investment strategies
- Multi-country payroll outsourcing: Three principal categories of service providers
- Multi-Country Payroll Outsourcing (MCPO) – Service Provider Landscape with PEAK Matrix™ Assessment 2015
- Multi-Process Human Resources Outsourcing (MPHRO) Annual Report 2014 – The Times are Changing
- Multi-Process Human Resources Outsourcing (MPHRO) – Service Provider Landscape with PEAK Matrix™ Assessment 2014
About Everest Group
Everest Group, an advisor to business leaders on the next generation of global services, has a worldwide reputation for helping Global 1000 firms improve performance by optimizing back- and middle-office business services. Through practical consulting, original research and industry resource services, Everest Group helps clients maximize value from delivery strategies, talent and sourcing models, technologies and management approaches. Visit http://www.everestgrp.com and research.everestgrp.com.