Pay raise: The industry will benefit from increasing investment in software and widespread adoption of the SaaS business model

Over the five years to 2017, the HR and Payroll Software industry has experienced robust growth. The industry has benefited from increased private investment in software and the trend for businesses to bring HR services in-house to cut costs. As with most software industries, the biggest industry trend is the move toward cloud-based software as a service (SaaS) products. This transition to new software product offerings will continue over the next five years, promoting healthy growth for the industry. Over the five years to 2022, revenue for the HR and Payroll Software industry is forecast to continue increasing, albeit at a slightly lower rate than the previous period. The industry will benefit from increasing investment in software and widespread adoption of the SaaS business model...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • The industry will benefit from widespread adoption of the SaaS business model
  • By developing new products and versions of existing products, operators can increase revenue
  • Industry operators will continue to benefit from an increase in corporate profit
  • Industry Report - Industry Investment Chapter

    The HR and Payroll Software industry has a low level of capital intensity. In 2017, for every $1.00 spent on wages, operators typically spend $0.06 in capital investment. Capital investment is primarily limited to property, computers and office furnishings. 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 software developers that are in high demand, labor expenses are high relative to revenue. In 2017, it is expected that 36.2% of revenue will go toward wages...purchase to read more.

    Additional Insights for the HR & Payroll Software Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the HR & Payroll Software Industry are

  • Undertaking technical research and development
  • Access to highly skilled workforce
  • Close monitoring of competition
  • IBISWorld analysts also discuss how external factors such as Private investment in computers and software and Corporate profit in the HR & Payroll Software industry impact industry performance..

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    What's in this report

    What is the HR & Payroll Software Industry?

    This industry develops software for the purpose of human resource and payroll management. This service is provided online or through proprietary software.

    Industry Products
  • HR management software
  • Workforce management software
  • Recruiting software
  • Compensation and benefits software
  • Talent management software
  • Learning management software
  • Industry Activities
  • HR management software publishing
  • Payroll software publishing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Private investment in computers and software
  • Corporate profit
  • Number of businesses
  • Government consumption and investment

  • Current Performance
  • From outsourcing to insourcing
  • Product offerings
  • Mergers and acquisitions
  • Chart: Revenue Growth

  • Industry Outlook
  • Corporate profit spurs industry demand and competition
  • Continued merger and acquisition activity
  • Table: HR & Payroll Software Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - HR & Payroll Software Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Manufacturing
  • Wholesale Trade
  • Retail Trade
  • Finance and Insurance
  • Healthcare and Social Assistance
  • Public Administration

  • Key Selling Industries
  • Computer Manufacturing

  • Products & Services
  • HR management software
  • Workforce management software
  • Recruiting software
  • Talent management software
  • Learning management software
  • Compensation and benefits software
  • Chart: HR & Payroll Software Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Energy and Natural Resources
  • Manufacturing
  • Services (other)
  • Public services
  • Financial Services
  • Chart: Major Market Segmentation for the HR & Payroll Software Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchases and depreciationOther expenses
  • Chart: Cost Structure Benchmarking – Sector vs HR & Payroll Software

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the HR & Payroll Software Industry

  • Industry Globalization
    Automatic Data Processing, Workday Inc., The Ultimate Software Group Inc., Intuit Inc., Oracle Corp.,
  • Table: Automatic Data Processing - financial performance
  • Table: Workday Inc. - financial performance
  • Table: The Ultimate Software Group Inc. - financial performance
  • Table: Intuit Inc. - financial performance
  • Table: Oracle Corp. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the HR & Payroll Software Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the HR & Payroll Software Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Private investment in computers and software (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Benefits Administration
  • The creation and management of employee benefits.
  • Cloud Computing
  • Computing model in which storage and computing tasks are handled by networked machines (often servers in a data center owned by the service provider) rather than at the point of consumption.
  • Software As A Service (Saas)
  • A model of software deployment where a provider licenses an application to customers for use as a service on demand.
  • What Our Customers Say

    Why buy this report?

    The HR & Payroll Software industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on HR & Payroll Software:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The HR & Payroll Software market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on HR & Payroll Software, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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