Industry Analysis & Industry Trends
The Payroll and Other Office Administrative Services industry has benefited from the private sector trend towards outsourcing business services over the past five years. 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. However, the sluggish general economy has contained the industry's performance since the late 2000s.
The industry relies heavily on business confidence 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... purchase to read more
Industry Report - Industry Key Buyers Chapter
The Payroll and Other Office Administrative Services industry has a low level of concentration. The four largest players account for less than 10% of annual industry revenue and the industry is characterised by its many small-scale one- or two-person operations, which service narrow regional or product markets. This is particularly evident in the billing and payroll segments, which tend to attract sole proprietors that service a niche of small and medium clients.
The low level of concentration also serves as an indicator of the highly streamlined and automated nature of the industry's services. While payroll services do require specialised training in domestic laws and policies, they do not need any intensive capital requirements or a large pool of labour... purchase to read more