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 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 industry revenue as the industry is characterised by many small-scale operators, 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