Tag: multi-country payroll outsourcing

Multi-country Payroll (MCP) Solutions PEAK Matrix® Assessment 2023

Multi-country Payroll (MCP) Solutions

The Multi-country Payroll (MCP) solutions market has expanded steadily over the last few years. The economic uncertainty has made enterprises focus on cost reduction and resource allocation. Enterprises are now seeking assistance beyond just conventional payroll management.

In response to this demand, providers have evolved their portfolio by offering flexible pricing models and easy scalability. MCP providers are empowering enterprises by extending cost-effective, compliant, and strategic solutions.

Multi-country Payroll 

What is in this PEAK Matrix® Report

This report assesses 27 MCP providers and positions them on the MCP Solutions PEAK Matrix® as Leaders, Major Contenders, and Aspirants based on their market impact and vision & capability. As the market has seen an uptick in regional consolidation in the past few years, we have included regional cuts for EMEA and APAC in the report to help enterprises in their regional sourcing decisions. In addition, the report includes sourcing considerations for enterprises that highlight the providers’ key strengths and limitations.

In this report, we examine the:

  • Relative positioning of providers on Everest Group’s PEAK Matrix® for MCP Solutions across global, EMEA, and APAC regions
  • Provider landscape
  • Providers’ key strengths and limitations


  • Industry: MCP solutions
  • Geography: global
  • This assessment is based on Everest Group’s annual RFI process for the calendar year 2023, interactions with leading MCP providers, client reference checks, and an ongoing analysis of the MCP solutions market

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What is the PEAK Matrix®?

The PEAK Matrix® provides an objective, data-driven assessment of service and technology providers based on their overall capability and market impact across different global services markets, classifying them into three categories: Leaders, Major Contenders, and Aspirants.

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Why Is ADP So Successful? | Sherpas in Blue Shirts

At Everest Group, we’ve been assessing why some service providers are so successful. Using a framework we created that focuses on six characteristics, it’s easy to understand why ADP is so successful. At the heart of their success is the fact that they live up to their promise of being the most trusted firm in payroll services.

As the figure below illustrates, branding, go-to-market approach, and portfolio are three key characteristics in successful companies.

Assessment framework technology service companies

I think what’s remarkable about ADP is that they align their brand of trusted payroll services with all their operational aspects. They go to market in a way that aligns with their brand choices and allows them to dominate or at least serve every geography, both large and small. They design their portfolio of products to be payroll itself and surround the payroll system to reinforce or deliver their complete promise.

They have the most comprehensive ecosystem around the payroll process, connecting with tax jurisdictions and integrating into a wide range of HRIS, financial, and ERP systems. As such, ADP may not at any one point be the leading provider of technology, but they are the most trusted provider. They achieve this through the breadth of their ecosystem, the breadth of their global offerings; there is no jurisdiction in the world in which they don’t keep up with the regulations of tax and payroll.

This allows them to service something very rare – both very large and very small companies. And they are the safest pair of hands in payroll.

Assessing the other characteristics necessary for success, it’s clear that ADP is always relevant in terms of technology. They continue to invest in technology, never allowing their technology to become out of date or antiquated. Staying relevant with technology doesn’t necessitate that they be leading edge; in fact, the leading-edge role would take away from their “most trusted” status.

They largely grow their own talent and don’t rely on large recruitment from outside. Therefore, they are able to deliver a high degree of quality and consistency in their talent. They ensure that ADP is a rewarding place to work and grow a career, which allows them to nurture talent.

ADP’s business model is completely aligned with where the services industry is headed. For example, any way you look at it, ADP was one of the first users of SaaS – before most of us knew what SaaS and BPaaS were.

All of these characteristics make ADP incredibly formidable in all things payroll and able to serve an incredibly wide variety of customers in almost every industry and geography. Bottom line: ADP delivers a nice, steady return to shareholders and trusted services to clients.

Photo credit: Flickr

Multi-country Payroll Outsourcing: The Changing Shape of Technological Advancements and Analytics | Sherpas in Blue Shirts

The multi-country payroll outsourcing (MCPO) market has grown at a CAGR of more than 30 percent during the last three years, and we expect this momentum to continue. And while this high growth rate may provide ample opportunities to MCPO providers, increasing competition is constantly pushing them to add more value to their offerings and invest in innovative solutions. As technology is the backbone of any global payroll solution, it takes center stage in this investment spend.

Three primary types of technology solutions enable gross-to-net calculations for multiple countries:

  • Single platform – Essentially a single system on one database that handles core payroll processing (gross-to-net) for all countries. This is appropriate for organizations that have a sizeable number of employees in each country of operation and want to replace their existing HRIS solutions.
  • Aggregated – Involves separate in-country software systems that process payroll at the country level. The payroll data from each country is then aggregated to provide a consolidated view to the buyer. This solution is better suited to an organization that has a small employee population spread across multiple countries with a large employee base in others and wants to leverage its own incumbent payroll platform.
  • Integrated hybrid – This is essentially a mix of a single platform solution and an aggregated solution.

Although the aggregated technology model is currently the most prevalent in the global payroll market, use of single platform and integrated hybrid solutions is rapidly emerging. Service providers are moving toward a single platform solution to enable greater centralization and standardization. However, given the difficulty in covering countries with small employee populations, it will become increasingly challenging to cover the entire globe with a single platform solution, especially as organization continue to expand into new locations. Hence, we expect adoption of the integrated hybrid model will increase in the coming years.

Consistent with other HR services areas, buyers’ interest in innovative, value-add, “consumerized” MCPO solutions is rising quickly. There is a growing need to enable employees to work from any remote location, at any point in time, and on any device of their choice. To cater to this demand, service providers are investing in the development of applications for mobile devices and smart phones. These apps will, for example, allow employees to receive notifications of their salary payments on their mobile phones, view their payroll summaries instantly, and submit their timesheets. In addition to increasing accuracy and timeliness, this consumerization also enhances employee engagement, satisfaction, and self-service.

Analytics and reporting is another hot segment within the MCPO market. Companies are increasingly looking for ways to better plan their future course and align their workforce to their business goals. Using business analytics on payroll data can help organizations achieve these objectives by providing critical insights related to absenteeism and employee turnover, aligning salary payouts (a significant chunk in P&L of many companies) with talent availability, and assisting in long term planning by way of salary budgeting and forecasting. Another area that both buyers and service providers are now concentrating on is consolidated global reporting (or single currency reporting). Although companies achieve some level of standardization and centralization from a “one provider for multiple countries” payroll model, truly global payroll is still evolving. Employing analytics around exchange rate synchronization can help companies achieve a consolidated reporting system. Service providers, therefore, need to focus on analytics as a value-added offering.

Buyers looking to achieve competitive advantage need to evaluate providers’ offerings on a holistic basis, rather than simply looking at their core payroll solution. As gross-to-net and other payroll sub-process capabilities have become table stakes, service providers now need to offer more value-add to obtain a first mover advantage. Technology and analytics capabilities can help them gain this competitive, differentiating edge.

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