As Alexander Graham Bell once said, “When one door closes, another opens” and that is what, it seems, recession has done. It is due to recession many IT companies have found a new way to make their balance sheet look good. The new opportunity that has now got their fancy is Multi-Country Payroll Outsourcing. It is true that this particular kind of outsourcing is there for a long time now but what is new is the popularity of this particular business.
There is so much growth in this market that it forced Everest Research Institute to conduct a study that showed a hopping 49 percent growth between 2006 and 2008. It is predicted that this trend will continue this year as well. There are many big Indian IT companies that are now investing their talents and energies in this outsourcing business. These companies include Infosys, Caliber Point, and TCS.
Multi-Country Payroll Outsourcing or MCPO as it is popularly known in the industry already has a market revenue of $ 202.9 million. Earlier it used to be only $ 90 million. It has also overtaken the popularity of the off shoring of HR related jobs. According to the study the practice of Multi-Country HR Outsourcing or Multi-Country HRO only has a growth rate of 12 percent.
The reason behind the popularity of MCPO is that it helps various multinational companies to cut down their cost, which is quite important during this time of economical crisis. It helps a company to control its costs immediately and also simplifies the whole process.
The study also shows that 58 out of 79 deals signed in 2008 include various outsourcing companies that work in the Asia-Pacific region. That is why outsourcing companies should take a cue from this and try to gain some profit by starting MCPO.