Executives have known for decades that to differentiate and defend their companies competitively, they need to focus on their core business strengths — the central activity that yields most profits and will assure organisational resilience for the future.
This is especially true as your company gets ready to take the leap into overseas markets. Typically, at this juncture, stress levels are high, and overstretched staff need all the time they can get to dedicate to business-mission-critical initiatives.
To be able to concentrate on core business competencies, companies know they need to partner with reliable third parties. The global business process outsourcing market size was estimated at USD 302,617.9 million in 2024 and is projected to reach USD 525,228.5 million by 2030, growing at a CAGR of 9.8% from 2025 to 2030,1 as firms seek to minimise operational vulnerabilities, improve agility and reduce operating costs that invite investor scrutiny.
Payroll is a prime back-office candidate for outsourcing, since:
- With the right technology and service approach, efficiencies can quickly be achieved
- Much of its repetitive, administrative tasks and calculations can easily be automated
- Improved accuracy can reduce costly regulatory penalties
As your company expands into new overseas territories, what do you need from a payroll partner? To answer that we should first examine what your company expects from the payroll function itself.
What do your executives expect from payroll?
Optimisation as standard
The C-suite expects the payroll function to be ready to support business growth at a moment’s notice. However, in reality, finance and HR leaders have lower expectations. And with PayrollOrg research showing that only 28% of businesses had a formalised global payroll strategy, with 30% working on one, and 42% not having one at all, there remains some way to go in supporting company or geographical expansion ambitions.2
Payroll leaders were asked if they had a formalised global payroll strategy2
42% No
30% Working on it
28% Yes
Data fit for strategic input
Senior management will be frustrated by anything less than a single ‘source of truth’ for payroll data, which can and should serve as a key component informing commercial and growth strategies.
With reliable payroll data, businesses can make data-driven decisions that enhance efficiency and drive success. For example, 46% of payroll leaders would like the integration of payroll and their HR system as a single system of record at a global level.3 This can help streamline processes, reduce errors and provide valuable insights into workforce trends and costs.
Flexibility built in
Any company’s payroll function should be able to scale and accommodate varying sizes of employee populations in-country as the operating environment morphs around it. But the truth is, companies employ various payroll strategies when moving into new markets. According to our research, 37% work with a global provider for their expertise in each market. Twenty-three percent build a local in-house payroll team, though finding skilled people is becoming increasingly difficult. While 19% find a local payroll provider and 18% rely on an Employer of Record provider to handle their payroll.3
Compliance, covered
At a minimum, company leaders expect the payroll function to convert compensation from gross to net pay while avoiding regulatory penalties along the way. Yet complying with constantly changing rules across different countries takes a tribe of legal experts to track updates and interpret often ambiguously worded laws.
In striving to comply with employment regulations, tax legislation, benefits entitlements, health and safety mandates, reporting requirements, and data privacy and security laws, companies often prefer to enlist the help of a global payroll provider.
Before taking on the additional complexity of compliance in new overseas territories, it’s vital to clearly understand your payroll vendor’s capabilities.
What do employees expect from their company’s payroll function?
Employees rely on precise payroll for their financial wellbeing, expecting it to be fair and easy to access. Meeting these expectations is key to satisfaction and loyalty.
According to our research, average payroll accuracy rates in countries where organisations are headquartered is 85%.3 Common errors stem from data inaccuracies, time entry issues, and lack of automation. By automating processes, companies can minimise errors.
The good news is that payroll teams are watching closely. Of the ones we surveyed, almost half (49%) track payroll accuracy, and around four in 10 focus on resolving payroll errors (43%) and the number of pay adjustments that have to be made (39%). In fact, only 1% of organisations ignore these measures.3
A fair workplace
Research routinely shows that the majority of the global workforce rate ‘salary’ as the most important aspect of their jobs, making pay inequality deeply felt.
When people feel that they’re paid fairly, their employers are more likely to have engaged and productive teams, and lower employee turnover.
Even though the share of people who feel unfairly paid is trending downward, the gender gap persists. Worldwide, a significant proportion (28%) of women surveyed said they are paid unfairly, compared to less than a quarter (23%) of men. In fact, in 15 of the 34 markets we surveyed, more than 30% of women said they are paid unfairly.4
By understanding global payroll data, businesses can implement effective pay equity strategies, ensuring a level playing field when entering new markets.
What does your HR/payroll team expect?
When we surveyed HR, finance and payroll leaders, respondents felt there’s a clear view of the benefits that any payroll transformation could help them deliver. The varying responses reveal the progress still to be made before payroll professionals can truly meet business requirements.
A future-proofed solution that can take the new normal in its stride
HR teams want a payroll system that talks to popular third-party HCM software, in ways they don’t need to worry about. A synced-up ecosystem that welcomes evolving ways of working (remote, flexible, hybrid) and types of employees (permanent, contingent, consultant).
More visible data = more viable improvements
Payroll staff with data expertise are in great demand — and thin on the ground. You need easy ways to extract reliable employee data quickly and work it into reports that leaders can use to validate workforce theories and substantiate business cases for change.
What would you most like to gain from payroll transformation? 3
|
25% |
Integration of payroll data with other business/HR systems |
|
25% |
Increased reporting speed |
|
24% |
Simplified payroll data collection methods |
|
24% |
More reliable cloud-based technology |
|
24% |
Timely regulatory compliance insights and system updates |
|
23% |
Access to greater reporting and analytics capabilities |
|
23% |
Streamlined payroll processes |
|
23% |
Tighter data security protocols |
|
23% |
Improved employee experience |
|
22% |
Standardised multicountry payroll processes |
|
21% |
Consolidated multicountry payroll reporting |
|
20% |
Remote access to payroll information |
|
19% |
Industry-leading payroll support |
Employee data safeguarded
Payroll teams appreciate more than anyone the sensitivity of the information they’re dealing with daily. Employee data is at even greater risk these days as more people work remotely.
Little wonder, then, that 93% of payroll leaders said that data security has become very or critically important in their company’s payroll strategy.3
Relief from back-office inefficiencies
Payroll staff want their companies to take action to relieve the manual burden and inefficient ways of working. At ADP we’ve seen a jump in queries from potential clients eager to find out about the benefits of automation as they strive for greater capacity for the more strategic thinking.
Our research shows 58% of companies are looking into the use of AI technology to help lessen the burden. While 50% have already made the leap and are automating manual processes. Furthermore, 41% have introduced Robotic Process Automation (RPA) to enhance efficiency and accuracy with their payments. As these technologies continue to evolve, businesses can expect to see even greater innovations to help with their payroll.3
Defining a global payroll partnership for growth
Circling back to our earlier question: as your company expands into overseas territories, what do you need from a payroll partner? A commitment to meeting all these expectations and helping you operationalise payroll swiftly in your new international locations.
But how does your chosen expansion strategy — organic or inorganic — affect the payroll function, and by extension, your partnership with a payroll provider?
1 Horizon Grand View Research, Business Process Outsourcing Market Size & Outlook
2 The 2024 PayrollOrg (PAYO) ‘Getting the World Paid’ survey
3 ADP, The potential of payroll in 2025: Global payroll survey
4 ADP Research, People at Work 2025: A Global Workforce View
