The next frontier for Payroll Outsourcing

Payroll arguably is the business support function that has the longest and strongest pedigree in outsourcing.

Payroll arguably is the business support function that has the longest and strongest pedigree in outsourcing.

Since it was introduced in the business world in the first half of the previous century, payroll outsourcing has gone through multiple stages of maturity.

Outsourcing already started when payroll processing was still a very manual process. It rapidly gained traction when computer science relieved payroll clerks from time-consuming and error-prone manual calculations. By the time the computer wave had revolutionized payroll management and payroll process design had streamlined the function, providers of payroll processing were ubiquitous.

I don’t think it’s exaggerated to say that the payroll outsourcing industry was built on automation and process discipline.

Fast forward to 70 years after the birth of payroll outsourcing. Where the first 45 years of payroll outsourcing were moderately exciting and innovative, the last 25 years were actually quite boring and conservative.

Except for the new multi-country payroll outsourcing offerings, it was just about “keeping the trains running” whilst making (often easy) money.

In many cases, the most significant change companies saw during these 25 years was an increase in the cost per payslip.

The main reason why payroll outsourcing took flight in the 70s and 80s was that external providers could run the payroll cheaper, faster, and more accurate through technological innovations and process optimizations.

Only very large companies had the cash to invest in payroll automation and match the service levels of payroll providers with internal teams.

Such is no longer the case today and maybe that’s one of the reasons why there are still a large number of companies running their payroll in-house.

The other reason could be that most payroll providers are still only good at processing the payroll but lack the desire and the capabilities to really relieve companies from the end-to-end payroll burden.

If payroll providers don’t want to be put out of business by disruptive technology, Robotic Process Automation, or other digital forces, they’ll need to be the first to embrace and the fastest to adopt new technologies. If they don’t, then their clients will sneak out of the backdoor and do it themselves.

I’m sure that most dinosaurs also once thought that not a single thing could distinguish them.

Download our PDF

The next frontier for Payroll Outsourcing

Thank you
Now you can download the PDF.
Oops! Something went wrong while submitting the form.

Watch the webinar

The next frontier for Payroll Outsourcing

Thank you
Oops! Something went wrong while submitting the form.

Schedule a demo with one of our experts.

Get an in-depth look into all our features.

Blog

Analysis of Total Cost of Ownership in Payroll Operations

Unlock hidden cost-saving opportunities in payroll operations with our in-depth analysis of Total Cost of Ownership (TCO). This white paper provides a strategic framework for understanding payroll delivery costs, evaluating different operating models, and implementing proven optimization strategies. Discover how process transformation, vendor management, and technology integration can drive efficiency while maintaining operational excellence.
Read more
10
min.
Webinar

Live Webinar - Transforming Multi-Country Payroll For Long-Tail Entities

Many multinationals have solid payroll solutions for their large entities but struggle with smaller, long-tail entities. A one-size-fits-all approach often falls short due to differing expertise and payroll maturity levels. Join our webinar to uncover key challenges and practical solutions for streamlining payroll across all entities—without losing flexibility. Learn how Paybix helps multinationals achieve efficiency, compliance, and scalability while optimizing costs.
Blog

The Payroll Odyssey: Rudi De Roeck’s Journey in International Payroll & Outsourcing

Rudi De Roeck’s 40-year journey in international payroll has shaped the way global businesses approach payroll outsourcing. From leading roles at SD Worx and Coca-Cola Enterprises to co-founding Paybix, he has seen firsthand why traditional payroll solutions don’t work for SMEs. In this article, Rudi shares his insights on the challenges of global payroll, the pitfalls of a one-size-fits-all approach, and how innovative payroll aggregation is changing the game.