Industry Analysis & Industry Trends
Working up
Improvements in the labor market will benefit the HR and Payroll Software industry. As the volume of administrative work rises, demand for HR and payroll software will rise. Further, private investment in computers and software will continue to grow, and industry firms will increasingly adopt the software as a service (SaaS) business model. On the other hand, some businesses may choose to outsource HR services, heightening competition for the industry.... purchase to read more
Industry Report - Industry Investment Chapter
The HR and Payroll Software industry has a moderate level of capital intensity. In 2011, for every $1.00 spent on wages, operators typically spend $0.24 in capital investment. This level is a modest increase compared with 2006, when industry operators typically spent $0.22 in capital investment for every $1.00 spent on wages. Capital investment is primarily limited to property, computers and office furnishings required to house employees. In many ways, software can be considered an intangible product; producing quality software that chiefly requires talented employees and time. Since industry operators compete for a pool of very scarce software development talent that is in high demand, labor expenses are very high on a per-employee basis. Furthermore, labor expenses account for 17.2% o... purchase to read more