Although MCP service providers have performed well with respect to the traditional drivers such as cost reduction and compliance, buyers expect more in terms of next-generation technologies and strategic support.
DALLAS, Texas (PRWEB) November 18, 2019
Multi-Country Payroll (MCP) solutions—one of the fastest growing markets in the human resources (HR) outsourcing space—will continue to grow rapidly, reaching US$3.3 billion by 2021, according to Everest Group.
The MCP solutions market witnessed approximately 20% growth between 2017 and 2018. This growth was driven primarily by mature providers offering traditional process efficiency benefits. As enterprises seek compliance, security and cost savings in their MCP processes, they are confidently turning to several mature MCP service providers who dominate the market today.
In addition, the MCP solutions market has received a boost from the rise in regulatory requirements across many regions, which is encouraging many first-time adopters to outsource their payroll to service providers. This has given rise to new players in the market, catering to the small-sized buyers of MCP solutions, which are typically multinational corporations spanning two to five countries.
“Although MCP service providers have performed well with respect to the traditional drivers such as cost reduction and compliance, buyers expect more in terms of next-generation technologies and strategic support,” said Anil Vijayan, vice president, Business Process Services, at Everest Group. “In fact, the drivers for adoption of MCP solutions are slowly shifting from traditional to next-generation expectations. These include offering a better employee experience, gaining insights through analytics, and the application of digital solutions such as artificial intelligence and robotic process automation. As the market evolves, service providers will need to continue to innovate and differentiate themselves to provide a better payroll experience to clients and maintain a strong foothold in the market.”
Everest Group explores these findings and others in a recently published report: “Multi-Country Payroll (MCP) Solutions Annual Report 2019 – Moving Toward Unification of Payroll and HR Services." This research provides a comprehensive analysis of the global MCP solutions market across various dimensions, including a market overview; trends in buyer adoption, transactions and solutions; and the service provider landscape.
Additional key findings in this report include:
- The market trend is for enterprises to unify payroll and HR services, typically comprising four elements: consolidation of geographical operations, integration with HR services, integration with wellness and benefit offerings, and the tie-up of payroll and other ancillary processes.
- Europe has emerged as the dominant market in terms of MCP solution revenue. The North American and Asia Pacific markets closely follow suit.
- The overall technology model for payroll has largely been skewed toward the integrated hybrid and single platform model as service providers look to provide a seamless payroll experience to clients with more focus on self-coverage.
- The leading players in the MCP solutions landscape have constantly innovated and invested in developing technological capabilities to differentiate themselves from other players in the market.
About Everest Group
Everest Group is a consulting and research firm focused on strategic IT, business services, engineering services, and sourcing. We are trusted advisors to senior executives of leading enterprises, providers, and investors. Our firm helps clients improve operational and financial performance through a hands-on process that supports them in making well-informed decisions that deliver high-impact results and achieve sustained value. Our insight and guidance empowers clients to improve organizational efficiency, effectiveness, agility and responsiveness. What sets Everest Group apart is the integration of deep sourcing knowledge, problem-solving skills and original research. Details and in-depth content are available at https://www.everestgrp.com.