More Businesses are Going to Start Taking Advantage of Global Outsourcing for Payrollwebdev
Massively expanding their company is any business leader’s dream, but what happens when your growth is taking you international? That’s even better, but ‘better’ isn’t always easier. You will have to struggle with the complexities that arise from doing business in a different country, especially one that speaks a different language. From communicating effectively and efficiently with staff to translating and understanding local laws well enough, expanding your business overseas can be daunting and discouraging.
When in-house administration becomes impractical
Companies who plan to keep on using their in-house team to perform administrative tasks such as payroll, rewards, time and attendance, and all other aspects of managing the workforce, soon find it impossible to keep up. Not only is it extremely difficult to manage a growing base of international staff using an in-house administration team domiciled in your home country, but it is also expensive. Recently, research has shown that companies who use an in-house team for certain administrative tasks including payroll, spend 20 percent more than those who outsource the same tasks.
The global payroll outsourcing market is gaining traction
In a report by Technavio, analysts disclosed that between 2017 and 2021, the global payroll outsourcing market will see a CAGR growth of about 6%. This is not hard to believe, especially when you consider the market drivers they pointed to as contributing to this projected growth.
One of the three market drivers identified by the Technavio report is the rising rate of adoption of integrated sourcing strategies. Many organisations have a payroll system that has been thrown into a chaotic mix with HR and financial systems, dependent on multiple international vendors. This topsy-turvy situation can make it difficult to make important business decisions.
More businesses are going to abandon ambiguous models that make it difficult to get the data they want when they need it. Instead, they will opt for solutions that unify these systems, such as payroll by Safeguard World International.
Another market driver indicated by Technavio is the growing demand to cut down costs related to payroll. Global payroll services often employ the latest technology combined with payroll expertise to manage a company’s global payroll information and provide sensible reporting and analysis, among other perks. Normally, if a company tries to maintain the same level of technology used by such services, the cost will be too much to bear. Even if the organisation could afford it, it would be too much of a money drainer to be overlooked, having to support and maintain internal IT teams.
The third market driver contributing to the growth of the global payroll outsourcing market is the rising need for payroll cost visibility. Organisations need frameworks that will enable them keep tabs on their global spending and present aggregate reporting of transaction information, employee data, and more. With the kind of flexibility and scalability offered by global payroll services, organisations find it easier to break into new markets.