Guide to Payroll Outsourcing: Maximizing the Advantages, Avoiding the Pitfalls

Examine the growing importance of outsourcing and the various steps that an organization needs to take in order to:

  • Lower costs and increase efficiency 
  • Gain operational control 
  • Achieve staffing flexibility 
  • Address risk management 
  • Develop internal staff 

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This guide is part of the Payroll Decision Support Network, a comprehensive resource providing payroll news, white papers, custom research answers, and webinars on the hottest payroll topics.



The cost for payroll administration continues to increase. Today, almost every business responsibility—customer service, logistics, information technology support, finance and accounting, editorial services, research and development, and legal services is capable of being outsourced in one form or another. In fact, almost half of U.S. businesses engage in some form of payroll outsourcing. 

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The practice of outsourcing the payroll function has grown in recent years, both in terms of the number of organizations that are choosing to outsource payroll, and the vendors that have entered the market and are offering services. Since cost reduction has become a major concern for most companies, there is increased focus on outsourcing single processes as well as enhancing existing functions. The global human resource outsourcing market, of which payroll outsourcing is a major part, is expected to grow to $162 billion worldwide by 2015, according to the website Seeking Alpha ( 

While organizations vary greatly in how they generate paychecks, all must do so on time and in compliance with the law. Included in this report is a list of vendors and resources, along with their contact information. In addition, a sample outsourcing contract provides an example to use when developing your own contract. Don’t miss out on this one-of-kind report!


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