The payroll and Bookkeeping Services industry has traversed challenging conditions through the past five years and is slated to flourish in the next five years. According to IBISWorld, over the next five years, the industry revenue is expected to undergo a marginal growth of 0.5% through 2012-2013 to attain a whopping $2.16 billion.
IBISWorld, Australia’s premier institution for industry and market research, offers a comprehensive research on every Australian industry. IBISWorld industry reports covers different facets of this industry like key external drivers, industry outlook and lifecycle, business locations, market share concentration, capital intensity, revenue volatility etc. The Payroll and Bookkeeping Services industry provides outsourced services for the employees of its clients.
As per the report there is an increasing trend among Australian enterprises to outsource Payroll and Bookkeeping Services. Another factor which has contributed to this trend is the growing inter-connectedness that businesses enjoy through online platforms. This growth took place in parallel with the increase in the number of businesses in the country.
On the flipside, the research showed that work volume and growth of revenue was affected by the higher rate of unemployment. Moreover, the existence of a poor business sentiment made the industry’s customers wary of the prices which paved way for their becoming more price-sensitive. This resulted in intensifying the competition existing within the industry, affecting prices, revenue and profit margins.
The research, which included a study on the market share concentration of the industry showed a highly fragmented industry having very low market share concentration taken up mostly by the two big players Talent2 International and Automatic Data Processing, with the rest being small players. However, in terms of the respective industry segments, a disparity is seen in the market share concentration of each.
Highlights from the report
- The next five years is expected to see the Payroll and Bookkeeping Services industry in Australia flourish, along with the growth in number of businesses resulting in an increased demand for the services of this industry.
- In 2012-2013 industry revenue is expected to see a growth of 1.9% in 2012-13, indicating the country’s recovery.
- The industry revenue is expected to undergo a marginal growth of 0.5% through 2012-2013 to reach $2.16 billion, over the next five years.
- Price-competition is expected to reduce with higher business confidence, benefiting the industry.
- An improvement in the business sentiment is also expected to change the attitude of the industry’s customers with a reduction in price sensitivity
- The persisting unemployment rate might prove to be a dampener on the demand for the services of this industry.
For the detailed report, refer Payroll and Bookkeeping Services report.