The payroll services industry has evolved significantly with AI, ML, and automation, driving accuracy, compliance, and predictive analytics. Cloud-based solutions have gained prominence, offering scalability, security, and real-time access, meeting the needs of enterprises globally. The continuation of remote and hybrid work has increased demand for global payroll systems that seamlessly integrate localized compliance with cross-border workforce management. Employee satisfaction is a key focus, with self-service portals and mobile access enhancing engagement and transparency. These advancements foster smarter, agile, and employee-centric payroll systems, driving efficiency, cost savings, and compliance. These developments fuel the demand for payroll services that enable enterprises to achieve operational efficiency, cost savings, and regulatory compliance, evidenced by about 18% growth in service providers’ revenue.
Both demand- and supply-side trends are covered in Avasant’s Payroll Business Process Transformation 2024–2025 Market Insights™ and Payroll Business Process Transformation 2024–2025 RadarView™, respectively. These reports present a comprehensive study of payroll business process transformation service providers and closely examine the market leaders, innovators, disruptors, and challengers. They also provide a view into key market trends and developments impacting the payroll services space.
We evaluated 33 service providers across three dimensions: practice maturity, domain ecosystem, and investments and innovation. Of the 33 providers, we recognized 22 that brought the most value to the market during the past 12 months.
The report recognizes service providers in four categories:
Figure 1 below from the full report illustrates these categories:
“Payroll transformation in the digital era goes beyond paychecks, focusing on tech-driven strategic value and employee experience,” said Avasant Partner Shabnum Grewal. “Service providers leverage AI, automation, and cloud platforms to modernize systems, streamline processes, and ensure compliance.”
The reports provide a number of findings, including the following:
“As regulatory demands grow, the need for compliant and scalable payroll solutions is critical,” said Aditya Jain, principal analyst with Avasant. “Enterprises seek systems that handle multi-jurisdictional compliance, enable workforce expansion, centralize operations, reduce errors, and provide real-time insights.”
The Payroll Business Process Transformation 2024–2025 RadarView™ features detailed profiles of 22 service providers, along with their solutions, offerings, and experience in assisting enterprises in their payroll processes.
This Research Byte is a brief overview of Avasant’s Payroll Business Process Transformation 2024–2025 Market Insights™ and Payroll Business Process Transformation 2024–2025 RadarView™ (click for pricing).
Avasant’s research and other publications are based on information from the best available sources and Avasant’s independent assessment and analysis at the time of publication. Avasant takes no responsibility and assumes no liability for any error/omission or the accuracy of information contained in its research publications. Avasant does not endorse any provider, product or service described in its RadarView™ publications or any other research publications that it makes available to its users, and does not advise users to select only those providers recognized in these publications. Avasant disclaims all warranties, expressed or implied, including any warranties of merchantability or fitness for a particular purpose. None of the graphics, descriptions, research, excerpts, samples or any other content provided in the report(s) or any of its research publications may be reprinted, reproduced, redistributed or used for any external commercial purpose without prior permission from Avasant, LLC. All rights are reserved by Avasant, LLC.
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