Global Payroll Outsourcing – What to Be Considered in 2023?

Global Payroll Outsourcing

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The process of managing employee payroll is complex and prone to errors. Besides, they require you to stay abreast of the complex tax rules and confusing employment laws. And when you have employees in different countries, you’ll have to hire more people to manage payroll efficiently. Or you can leverage global payroll outsourcing services.

According to the Globe Newswire, the global payroll outsourcing market is expected to grow by $7087.99 million at a CAGR of 5.8% during 2023-2027. Third-party outsourcing can lead to significant savings and reduce risks associated with wrong paychecks.

However, choosing the right partner is critical as you’d be sharing highly sensitive information with a third-party company. And that’s what we’ll help you with today. This guide will help you understand what you should consider during global payroll outsourcing. Let’s get started!

How Global Payroll Outsourcing Works?

It is critical to understand how third-party outsourcing works, so you make a more informed decision.  

Choose a Partner

The first step is to find the right partner to help you with global payroll. You can choose from a payroll outsourcing company, a PEO, and local accountants (in each country).  

Irrespective of who you choose, they must have the resources, infrastructure, expertise, and a proven record of accurately managing payroll.  

Additionally, decide what and how much you want to outsource. For instance, some companies want to outsource payroll tasks to a third party. However, others wish to co-source it (a hybrid model in which only certain payroll tasks like tax are outsourced).

Create an Agreement

Even with the most reputed third-party outsourcing company, you need an agreement that safeguards your intellectual property. It will include their duties and protect you from liability for their mistakes, if any.  

Make Payroll Happen

Once you’ve entered a partnership agreement, the global payroll outsourcing provider will work on your behalf. This involves managing employee deductions, ensuring tax is paid to relevant authorities, and paying your global employees in their local currencies. 

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Things to Consider for Successful Third-Party Outsourcing

While the working process seems straightforward, the first step (i.e., finding the right partner) is quite challenging. Here are some tips to make it easier for you. 

Scope of Service

Before you finalize a global payroll partner, you need to answer the following.

  • What does the provider offer?
  • Does it cover everything you need right now?
  • Do they have the capability to support future growth?
  • Will you need add-on services, and how much do they cost?
  • Is there any other provider who offers these services at a better cost?

One of the critical reasons to outsource payroll is to reduce expenses and ensure compliance. However, if your payroll provider is charging you a fortune in the name of add-on services, you might be letting the purpose of outsourcing down. 

Countries Served

The next thing to consider is which countries they serve. It’s ok if they’re unavailable in every country worldwide, but they should have a robust presence in the regions you’ve offices in or plan to open and the need to check on the currency they accept and able to pay to your employees. You should consider your business plans ten years from now and make a decision accordingly.


Since most payroll mistakes happen during calculations, it makes sense to analyze if the provider has the necessary skills and resources to generate accurate payslips. Ask how they calculate the payroll, taxes, and other benefits.  

 The chances are they’d be using some kind of tools or automation to do it. Ask for a comprehensive tool demo to understand how accurate and reliable it is. 

Local Expertise

As mentioned above, ensuring compliance is one of the reasons businesses outsource their payroll. Therefore, spend some time understanding if your payroll provider has in-depth knowledge of local regulations.  

Technology Integration

Since payroll is a critical business function, you’d not want to depend completely on a global third-party provider for updates. Thus, it is vital to check how to integrate their tool with your existing infrastructure or if you need to invest in additional resources.  

For instance, if you have an HRIS system, check how to connect it with your payroll provider’s system. This will give you real-time access to your payroll and keep you abreast of changes.  

Another advantage of integrating your payroll system is that it can automatically sync employee attendance, eliminating the chances of human error.


Payroll is a complex business function. Even when you outsource it, you’ll have questions related to it. Therefore, look for a provider that offers help when you need it. You’d not want to wait 48-72 hours for their reply over an email. So, you should ask for a dedicated point of contact who can answer your queries.  

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Defined Performance Metrics

Like any project, you need to measure the success of global payroll outsourcing. Your payroll partner and key stakeholders must agree with these metrics beforehand. These metrics could be payroll accuracy, timely payments, 100% compliance, or other KPIs that matter to your business.  

Ask your payroll provider how often you will receive those performance metrics reports and what changes to expect if the goals are unmet.  

Reviews and Testimonials

Does the global payroll provider have a good reputation? Are their existing clients happy with their service? You can get answers to these questions by looking at customer reviews. Sites like Google, Glassdoor, TrustPilot, and even social media channels can give you a broad understanding of it.

Additionally, you can ask them directly for customer references that you can reach out to. These references can give you in-depth feedback on their approach, flexibility, accuracy, and customer service.


No two global payroll outsourcing companies are the same. Their process, tools, human resources, and expertise will differ vastly. Differences in price tags of payroll service providers also mean differences in the level of service and expertise they offer. Thus, ensuring you’re getting the best value for money is critical. 

 Compare their service offerings, reputation, integration options, and countries they serve before making a decision.  

Wrapping Up

Thanks for reaching out till here!

There are dozens of things that can go wrong with global payroll, which could affect your brand reputation. Therefore, take some time to find the right global payroll outsourcing partner based on your needs and budget. Ensure that they have a proven track record of managing multi-country payroll, satisfied customers, and offer flexibility for growth! 

Please write us at or +91 7204012636We are happy to assist you in any payroll or PEO queries.

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