According to our latest study on "Cloud Based Payroll Software Market Forecast to 2028 - COVID-19 Impact and Global Analysis - by Component, Organization Size, and Industry Vertical," the cloud based payroll software market is projected to grow from US$ 10,254.01 million in 2022 to US$ 20,355.22 million by 2028; it is estimated to register a CAGR of 12.1% from 2022 to 2028.
Advantages of Cloud-Based Payroll Software Over On-Premise Solutions Fuel Cloud Based Payroll Software Market Growth
Cloud-based payroll systems make it easy for enterprises to organize and customize workflows according to the changes in the business. In addition, cloud-based systems scale quickly, keeping simplicity irrespective of the number of deadlines, dependencies, task owners, and approvals included in a given payroll process. Moreover, cloud-based payroll software allows data to be accessed from anywhere on any device. As working from home has become popular, cloud-based payroll system plays a vital role in managing payroll remotely. Furthermore, cloud-based software allows payroll staff and other employees to access their payroll information, such as annual leaves and pension letters, in real-time. Cloud-based payroll software calculates bonuses and expenses, allows easy setup of new clients, and adds employees to the payroll systems. On-premise deployments provide high data safety and security levels. However, protecting information in on-premise payroll software from hacking and cybercrime can be costly compared to cloud deployment. All these benefits of cloud-based software propel the cloud based payroll software market growth.
North America has the highest rate of advanced cloud-based payroll technology adoption owing to favorable government policies that foster innovation and enhance the infrastructural abilities of payroll management. The COVID-19 pandemic severely impacted several industry verticals, including the shutdown of construction activities and maintenance projects at several locations after state governors issued multiple "stay at home" orders and allowed enterprises sufficient time to examine their existing business operations. Therefore, organizations supported the digital transformation and aggressively switched to the cloud-based payroll system due to uncertainties created in business operations by the pandemic. The lack of accessibility of payroll staff to physically visit the office and use the organization's payroll software and data security issues with payroll, as it contains sensitive and confidential information, were a few challenges faced by the organizations. Thus, the COVID-19 pandemic boosted the North America cloud based payroll software market growth.
Key Findings of Study:
The cloud based payroll software market is segmented based on component, organization size, industry vertical, and geography. Based on component, the cloud based payroll software market is bifurcated into software and services. Based on organizational size, the cloud based payroll software market is bifurcated into small and medium enterprises and large enterprises. Based on industry vertical, the cloud based payroll software market is segmented into healthcare, manufacturing, IT & telecom, BFSI, retail, hospitality, and others. By region, the cloud based payroll software market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South & Central America.
Based on component, the cloud based payroll software market is bifurcated into software and services. The services segment is further bifurcated into professional services and managed services. The software segment led the cloud-based payroll software market in 2021. Along with the increasing digitalization, businesses of all sizes are focusing on adopting automated payroll software to ease their workforce management process. A robust, integrated, and properly configured payroll software helps organizations of all sizes maintain compliance with tax laws and other financial regulations and reduce costs. Also, it frees human resources (HR) teams from routine tasks so they can spend more time planning, budgeting, and other business-forward initiatives. Moreover, cloud-based payroll software integrates with other core business systems to ensure that employees receive accurate, on-time compensation (such as direct deposit, check, or payment card). In addition, it ensures accurate and timely payments and tax deductions by locality, automatically adjusting to different rules and regulations as employees move and offices open or close.
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