The document discusses the payroll outsourcing industry. It provides an overview of payroll outsourcing services which include functions like payroll processing, tax filing, and compliance. Major trends in the industry include outsourcing providing flexibility for international expansion and delivering consistent service across countries. Pricing models for payroll outsourcing include cost-based, market-based, and value-based pricing.

1. Payroll Outsourcing Industry
Supriya Sarkar

2. Table of Content
• Payroll Outsourcing Services Overview
• Major Trends in Payroll Outsourcing Industry
• Pricing Mechanism in Payroll Outsourcing Industry

3. Payroll Outsourcing Market
Global Payroll Outsourcing Market (2011):
Market Overview $ 13 Billion
• Global Payroll Outsourcing Market was
estimated to $13 bn in 2011 with a 8.5% 8.5%
13.5
increase from 2010 13
– Increased demand for multi-country payroll across
12.5
all regions 13
12
– With payroll companies can reduce their cost up to 12
11.5
85%
– Multi-country platform is managed by a single 11
vendor to obtain global visibility of cost and 2010 2011
aggregated reporting of data Global Payroll Outsourcing Market (2011):
– Payroll outsourcing ensure compliance and $ 13 Billion (By Segment)
manage risk due to continual changes in tax laws
Multi-
National
Major Players 10%
Mid
ADP Paychex Market
50%
Celergo Ceridian Employer Services
National
40%
ACS Hewitt Associates

4. Payroll Outsourcing Services Overview
Functions BPO Services Activities and Automation Opportunities
Automate payroll practices including maintaining your payroll cycles, local tax data,
Payroll Administration period-end processing, and payroll production.
Pre-Payroll Processing
Enable your ability to track and report employee attendance data and fully integrate
Time & Labor Management into the payroll system, saving you time and money.
Payroll Processing Services Provide automated paperless processing of regularly scheduled payrolls, as well as
off-cycle, manual check processing when required.
Payroll Processing
HR Advisory Services Leverage best practices in HCM with workshops designed to transform your HCM
practices from experts who know how to leverage technology.
Tax Filing Services Ensure complete tax compliance and relieve difficulties of maintaining current tax
tables. TITAN GS will prepare and file federal, state, and local taxes to required
Post Payroll Processing agencies, establish new tax jurisdictions, and distribute W-2s, W-2Cs, & 1099-Rs.
Payroll Compliance Services
Ensure complete compliance with services including new-hire reporting and full-
service wage garnishment.
Payroll Outsourcing Services Overview
• Payroll tax returns 940s and 941s
• Payroll reports Reporting and filing W2 and W4
• Check processing and delivery Employee insurance deductions
• Quarterly and annual tax reports Direct deposit payments with "paperless" payroll options
• Time and attendance system

5. Table of Content
• Payroll Outsourcing Services Overview
• Major Trends in Payroll Outsourcing Industry
• Pricing Mechanism in Payroll Outsourcing Industry

6. Key Trends : Payroll Outsourcing Services
Payroll Getting accurate payslips on time is a driver to payroll
Outsourcing outsourcing
Services • Payroll outsourcing is supported by the local authorities as it was
risk reduction. On-time delivery of accurate payslips proved to be
a critical contribution to business continuity
Outsourcing brings flexibility for international expansion
• Payroll outsourcing flexibility to multinational companies for
international expansion without having to deal with the
complexity and subtleties of diverse national regulations
Payroll is the central component in 94% of HR multi-country
BPO deals
• Multi-country payroll outsourcing delivered by a single service
supplier has now become a reality and is a key component in
almost every multinational HR BPO deal.

7. Key Trends : Payroll Outsourcing Services
Payroll
Outsourcing Deliver consistent levels of service in different countries
Services • Multi-country payroll outsourcing enables international
companies to deliver consistent levels of service across
countries, brings significant savings, facilitates compliance with
various regulations and geographical expansion
The relevancy of outsourcing for mid-sized companies
• Factors such as enterprise culture and organization size also
influence the adoption of payroll outsourcing
Outsourcing be a way to turn fixed payroll costs into variable
costs
• More and more companies consider it a non-core function that
could be outsourced more flexibly and easier to adjust

8. Drivers/Barrier to entry for Payroll Outsourcing Services
Drivers: Payroll
Outsourcing • Save more than 30% through direct and indirect costs
Services • Find more time and resources to focus on your core business
• Your employees will be paid on time, all of the time, by fully qualified
payroll professionals
• With full visibility of your payroll costs you can plan, budget and control
more effectively
• Full disaster recovery site and business continuity plans in place so you
have peace of mind that your confidential payroll data is in safe hands
Challenges: Payroll
Outsourcing • It involve spiralling costs and patchy service quality
Services • It may become difficult to access important employee data in outsourced
payroll information systems
• if payroll mistakes occur, the ability to quickly rectify the situation may be
compromised

9. Table of Content
• Payroll Outsourcing Services Overview
• Major Trends in Payroll Outsourcing Industry
• Pricing Mechanism in Payroll Outsourcing Industry

10. Pricing Mechanism in Payroll Outsourcing Industry
Payroll
Outsourcing Cost-based pricing
Model
• This is the most common method used in accounting firms today, but
is rarely used in other industries
Market-based pricing
• Many find this is the most common and most realistic method of
pricing for small- and medium-sized businesses.
Value-based pricing
• This strategy is based on the premise that pricing is an art, not a
science. Value is in the eye of the beholder—the client