How do you know if your #learning is relevant for the #future?
Find out at the region's largest conference for HR and L&D practitioners, Learning & Development Asia, happening in September.
Register for early-bird savings now.
NelsonHall’s recently published Payroll Outsourcing market analysis reveals that the Asia Pacific market is forecast to grow at 11% CAAGR to reach $1.2bn by 2020, which is approximately twice the rate of the overall market.
Along with Latin America, APAC is the region seeing the highest growth, with increasing demand for outsourcing solutions in relatively immature markets. Growth is also due to demand for multi-country payroll in these regions, together with an increased focus on compliance.
It’s therefore no surprise that half of all vendors included in NelsonHall’s market analysis are targeting clients in APAC.
APAC is typically supported from service delivery centers in Manila, India or China. China is becoming increasingly popular as a delivery location, not only for onshore clients but also for nearshore clients based out of Japan.
Growth in APAC is evidenced by a wealth of market activity from vendors such as:
- Excelity onboarded a number of new countries including Bangladesh, Macau, Cambodia and Pakistan in 2016. Will focus on expanding its presence in Malaysia, Japan and Australia.
- Ramco began offering managed payroll services to China, Australia and New Zealand in 2015, and will continue to develop its presence in ANZ. Expected to build a delivery centre in the Philippines.
- NGA HR is looking to develop its Australian market share by leveraging its onshore service centre in the region.
- ADP has service centres in India, Singapore, Philippines, China, and Australia.
ALSO READ: The 5 most complex countries for payroll
- Neeyamo provides payroll globally from six global delivery centers including four in India (Chennai, Pune, Gurgaon and Madurai), with an additional presence in Manila and Mexico.
- MHR has opened legal entities in Australia to support growth in its international business in 2015/2016.
- Infosys is continuing to build its presence in the ANZ and APAC region.
- Ceridian is looking to expand its presence in ANZ.
- TMF Group acquired KCS Group in 2014, significantly increasing its scale across APAC, with growth plans including China, India, and Hong Kong.
Vendors will continue to invest in developing cloud technology solutions to address the growing demand from the APAC market, according to the report.
Photo / 123RF