Industry Analysis & Industry Trends
The Payroll and Other Office Administrative Services industry has benefited from higher demand for outsourced business services over the past five years. Demand has increased due to the perceived benefits of outsourcing ancillary or back office functions to specialist providers, which primarily involve reducing costs as it tends to be more expensive to perform these functions in-house. The industry comprises many small businesses that tend to service narrow regional markets. Larger players like ADP often service larger companies, but employ a small number of people due to software automation. The industry heavily relies on growth in downstream demand from markets such as financial and professional services firms... purchase to read more
Industry Report - Industry Investment Chapter
The Payroll and Other Office Administrative Services industry has a low level of capital intensity. For every dollar spent on wages, industry operators invest $0.04 in capital. This is because of the industry's service-based nature, as skilled employees that are trained in using customised payroll and accounting software are required to provide the industry range of services.
Capital requirements in the industry are small, and generally consist of computers and office equipment like photocopiers, fax machines, computers and telephone lines. Capital requirements are expected to have risen over the past five years as the industry's services have become increasingly automated, as companies increase their expenditure on software development in a bid to provide new products... purchase to read more