Industry Analysis & Industry Trends
The Payroll and Other Office Administrative Services industry has benefited from the private sector trend of 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. The industry relies heavily on the growth in underlying demand, which is affected by the number of businesses and the number of employees in the labour force, which both exhibit steady growth over the long term. Business confidence and business expenditure are also major drivers, as these influence an organisation's decision to outsource non-core activities to specialist service providers... 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 many small-scale 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 market of small and medium clients.
The low level of concentration also illustrates 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 intensive capital investment or a large pool of labour... purchase to read more