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Why it makes sense to opt for Outsourced Payroll Services

Priya S



In the era of increasing digitisation, organisations must implement the latest technologies in their processes to survive. However, administering these technologies is more complex; therefore, business owners and organisations often look for another option that allows them to manage business processes and focus on business growth hassle-free. One of the best solutions they can look to is hiring third-party outsourcing for several processes since managing every aspect in-house is impractical.

Are you aware that the global payroll outsourcing market size reached nearly US $8.9 billion in 2022 and is projected to reach nearly US $12.1 billion by 2028? The market for outsourced payroll services showcases a growth rate (CAGR) of 5.24% from 2023 to 2028.

Why do Payroll Outsourcing Services make sense for businesses?

Business owners generally prefer outsourcing processes that require constant focus and immediate attention. One such challenging process for these owners is payroll administration. Payroll is not only complex and time-consuming but also a critical business function.

Payroll management is not limited to processing and disbursing the employee’s salary. It also includes several other functions, such as adhering to relevant laws and regulations, processing benefits and other compensations, necessary deductions, and much more. With all these complexities and penalties involved, outsourced payroll services have become popular worldwide. Also, the benefits of outsourcing the payroll process are more comprehensive than the size and nature of the business. The compelling advantages are similar to multinational enterprises and ambitious startups that visualise themselves as the next big unicorn.

The significant benefit of payroll outsourcing services is saving time and resources. Managing the payroll process internally requires dedicated personnel, training, and investment in payroll software and infrastructure.

In this blog, we have listed the benefits signifying why it makes sense to opt for Outsourced Payroll Services

  1. Enhanced Precision and Regulatory Compliance

According to recent statistics, nearly 94% of the companies have experienced improved precision in their payroll processing. As per Statista, there has been a decrease in the payroll penalties by nearly 82% post-outsourcing. This is due to the in-depth understanding of the payroll process, tax laws and other regulations that the outsourced payroll companies possess. These professionals constantly stay updated with the latest changes in regulations that change frequently to ensure accurate computations and adherence to compliance requirements.

  1. Improved Employee Satisfaction

Your payroll outsourcing services will help streamline your payroll process, leading to timely and accurate disbursement of salaries. This will help enhance employee satisfaction and introduce trust among the employees regarding the accuracy of their payment structure. According to the survey, nearly 87% of the employees have reported increased satisfaction and transparency within their payroll experiences after their companies have opted to outsource their payroll processes.

  1. Efficiency and Cost Savings

Outsourced payroll services will help free up your in-house resources and even reduce the operational expenses involved in the payroll process. According to the Industry Authority reports, companies have witnessed an average 18% reduction in operational costs after outsourcing their payroll process. Since payroll involves crucial tasks, by delegating them to the professionals, the workload of the in-house team has been drastically reduced.

  1. Scalability and Flexibility

When your business scales, so does your employee strength. In such circumstances, payroll processing becomes complex and challenging. Outsourced payroll service providers can adjust their operations according to your fluctuating business requirements. They are entirely scalable and flexible. Even if your company’s workforce fluctuates according to seasonal needs or you have employees at global levels, outsourced payroll service providers will smoothly adapt all payroll tasks to meet your ever-changing business needs.

  1. Access to Advanced Technology

With the help of outsourced payroll services, nearly 85% of the companies have reported improved efficiency and accuracy in their payroll process. Payroll outsourcing service providers invest in specialised software and technological solutions for their payroll operations. Thus, outsourcing your payroll process will help you access these advanced technologies and streamline your payroll processing operation. Moreover, your company will also benefit from automating other processes, such as attendance management and payslip generation, thus minimizing manual efforts and errors. According to recent statistics, outsourced payroll services have reduced processing time by nearly 40% due to the implementation of real-time statistics.

  1. Data Confidentiality

Payroll involves highly confidential and sensitive information relating to employees’ remuneration and their banking details. In such circumstances, you must always ensure that you are hiring a reliable outsourced payroll service provider. A reliable payroll outsourcing service provider will have strict data protection measures, robust privacy protocols, and secured systems. According to the statistics, nearly 97% of companies have witnessed improvement in their data security after outsourcing their payroll processes.

Additionally, these outsourcing firms have a comprehensive contingency plan in place to protect your payroll data from unexpected circumstances so that your operations are not disturbed. Nearly 97% of companies have witnessed a decline in such incidences due to the contingency plan available with the outsourcing firm.

  1. Navigating Post-Covid Payroll Challenges:

COVID-19 has led to changes in working conditions, and every company has shifted to remote working conditions. In the post-COVID era, the shifting to hybrid working models, in addition to remote working, has led to additional complexities in managing payroll. Companies have to evaluate their working policies and focus on creating strategies for retaining and attracting talent. Thus, managing payroll in such circumstances requires high focus, significant technological reworking, and investment. Your payroll outsourcing service providers will help ease your work and provide specialised expertise in such circumstances.

Choosing the Right Partner

Since payroll includes crucial and sensitive information, you must choose the right outsourced partner who must be:

  1. Reputable and ensure they adhere to all necessary data privacy and security.
  2. Invest in next-gen technologies.
  3. Have a knowledgeable team and ensure compliance and efficiency.
  4. We can provide complete support with your changing business requirements, such as outsourced accounting services, bookkeeping services, tax services, etc.

Overall, your outsourced payroll service partner must be capable of saving you time, avoiding penalties, reducing payroll maintenance costs, protecting your employee data, and adapting to your company’s policies.


In conclusion, outsourcing payroll management offers several benefits, including cost savings, complete compliance assurance, enhanced efficiency, and employee satisfaction. By leveraging the expertise of specialised professionals and embracing innovative solutions, businesses can optimise their payroll processes and achieve tremendous success in today’s competitive circumstances.

At Corient, our team of experts can assist you in maintaining statutory compliance across various industries and jurisdictions. Contact us today to streamline your payroll processes and drive business growth.

We also specialise in providing outsourced services to businesses and accounting firms. Our other services include online advisories and business consultants. We provide comprehensive solutions tailored to your business requirements, including outsourced bookkeeping services, accounting services, tax outsourcing, payroll management, VAT compliance, and business advisory, that can help foster your business growth.

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