Demand Surges in Line with Digitalisation of Businesses
Most HR software options provide insightful reports that show attendance, leave, and timesheet data required for payroll calculation. They also help organisations adhere to state and national labour laws. Being automated, the chances for payroll errors are almost nil. The expansion of HR payroll software market is thus anticipated to be fuelled by the rising demand for cost-effective HR payroll systems, and the increased use of social media. To combat the fierce business competition, businesses have embraced digitalisation, consequently adopting automation. This has been creating a need for seamless solutions and platforms to meet business requirements, ultimately accelerating the adoption of HR payroll software across various industries.
Ascending Adoption of AI, and Cloud Bodes Well for HR Payroll Software Market
HR payroll software market has ample scope of growth owing to the rising penetration of Artificial Intelligence (AI), and the increasing use of cloud-based technology. The market landscape is constantly shifting due to the introduction of new apps and to keep up with evolving technologies. When deciding on the software's IT architecture, cloud-based software offers excellent flexibility. The cloud SaaS reduces client infrastructure expenses while providing scalable and dependable software. To focus on their core competencies, organisations are increasingly turning to cloud-based software and service providers for software and services. Utilising cloud-based software that providers offer allows clients to save money on infrastructure. In 2021, cloud data centres will process 94 percent of all workloads and are estimated to store 100 zettabytes of data to be held in the cloud by 2025. The growing use of the cloud for various software with the increase in data storage will help the HR payroll software manufacturer to deploy cloud-based software, which will drive the demand for the product.
Using AI in the HR payroll software will further enhance market growth. The ability to foresee employee expectations and make modifications promptly is simple for HR managers by investing in AI. Employers can also utilise AI systems to create reward programs based on employee performance and identify which workers are most likely to leave their jobs. AI is used by 37% of companies and organisations. Although nine out of ten prominent firms have invested in AI technologies, less than 15% use AI in their work. The increasing use of AI in several industrial processes will increase adoption in the HR field, accelerating the progress of HR payroll software market.
Cloud Remains the Leading Segment with Soaring Demand for Cloud-based Software
Throughout the forecast, the cloud segment's market share will rise. The cloud deployment technique provides better data management, less data loss, and less concern for regulatory compliance. More businesses are using cloud-based security and safety solutions due to these advantages. Organisations are progressively implementing cloud-based solutions in response to customer demands and business objectives. The cloud deployment technique has benefits, including higher speed, scalability, 24/7 support, and improved IT security. The increasing need for efficient cloud storage, access, and administration of the massive volumes of data produced by these organisations has been a crucial growth facilitator.
Rapid Adoption of Self-service Business Model Underpins North America’s Top Market Positioning
In the forecast period, North America will hold a significant share of global HR payroll software market. The need for HR payroll software in the North American area will witness profitable growth due to the rising use of HR payroll software in banking, finance, manufacturing, and healthcare industries to enhance enterprises and customer experience. The market for HR payroll software in the area has recently been increasing and will continue to do so over the coming years. The HR payroll software market here is expanding due to changing consumer expectations, and employees' increasing willingness to adopt the self-service model. In the US, in 2022, the HR payroll software will pay total wages of US$5 Bn. The country's rapid use of HR payroll software will help drive HR payroll software market in the region.
The forecast period is expected to see the highest growth of HR payroll software market across Asia Pacific. This is due to the increased use of cloud-based technologies, and app-based HR payroll software, which drive the market expansion in this region. In India, end-users spent USD 4.4 billion on public cloud services in 2021. This is an increase of 31.4% from 2020. To automate the payroll processes, businesses in the Asia Pacific area are concentrating on implementing technologies like optical character recognition and intelligent character recognition. Due to the ability to access data from any location at any time on any device, most businesses in the area are outsourcing the payroll management process. Due to the digitisation of workplaces, many payroll software providers are concentrating on creating more dynamic and collaborative solutions to suit client demands.
Global HR Payroll Software Market: Competitive Landscape
Key players in HR payroll software market have been introducing new products and form alliances, partnerships, and collaborations. In December 2021, HR Path said that it had acquired Integra, one of its significant purchases since the Group's founding 20 years ago, solidifying its position as the industry leader in HR solutions throughout Europe and Latin America. Integra concentrates its efforts on Cornerstone OnDemand, installing the SAP SuccessFactors HXM (Human Experience Management) suite solution, and outsourcing services for personnel, payroll, and talent management (BPO and TBPO models). In June 2021, the top provider of employee mobility and payroll services, Activpayroll, announced a strategic alliance with Cornerstone OnDemand, Inc., a leader in human capital management. With a scalable and legal global payroll system, the coalition will introduce a full range of technology-driven HR services to the market, including hiring, customised learning, development-driven performance management, and holistic HR planning.
A few players in the HR payroll software market include ADP, LLC, Ascentis Corporation, Cornerstone OnDemand, Inc., Epicore Software, Oracle Corporation, Patriot software, Paycom Software, Inc., Sage Plc., SAP SE, and SumTotal Systems Inc.
Global HR Payroll Software Market is Segmented as Below:
By Deployment Mode
By Organization size
By Industry Vertical
Key Elements Included In The Study: Global HR Payroll Software Market
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