October 4, 2011: Service providers into HR and Payroll software; be ready there are immense opportunities for you in the coming five years.
Yes, IBISWorld report states that in the coming five year the demand for HR and Payroll software is about to touch heights. According to the report it is anticipated that by 2016 companies which are into HR and Payroll software and solutions might see a tremendous up trend in revenue generation that would reach up to $ 4.0 billion. The growth rate on the industry is calculated at an average of 5.0 percent every year IBISWorld report added. Regarding IBISWorld, it is one of the best research analysts around the globe which always come up with findings related to outsourcing industry.
The report clearly defined that as the global situation is crucial and outsourcing business is slow, companies are focusing more on in-house facilities and planning to invest more on HR and Payroll software so that they get internally stronger to face the situation. At present many companies are adopting this as a strategic approach to end up issues for time being. In the later stages, while economic issues come to an end and market starts recovering, the companies can again avail the possibilities wide open in outsourcing industry.
As far as HR and Payroll industry is concern this is an elegant opportunity as there will be demand for their products as well as online software licenses updating will also increase. The software ensures global players to automate administrative process which will reduce time required for the employees to perform administrative works. Moreover it will also ensure to minimize the risk of mistakes and data manipulations along with cost efficiency. IBISWorld also added that million dollar companies which are into software development such as Microsoft is trying to accrue small players in the sector to enrich there product length.
The service providers that are into Human Resource Outsourcing will be one affected by this emerging trend. At this point of time there are many service providers both in the offshore and near shore that are exclusively into delivering HR solutions for the clients in different parts of the world. Such companies might find it difficult to survive in the long run. IBISWorld estimates that this trend is to be continued for another 5 year and it is obvious that for service providers it is a big blow.
IBISWorld survey report on the industry was an eye opener for service providers in the BPO sector especially who was anticipating an increase in business and increase in number of contracts by the end of next year.