The multi-country payroll outsourcing (MCPO) market, one of the fastest growing markets within the HR outsourcing sector, is now worth more than US$1bn (£653m) annually, according to US-headquartered business advisory firm Everest Group.

The market has witnessed about 20% compound annual growth between 2012 and 2014, with momentum expected to continue in coming years, a new report from the group says.

The report, ‘Multi-Country Payroll Outsourcing (MCPO) – On the Verge of a Quantum Leap’, was published last week.

It found while North America and Europe were the largest markets, with firms headquartered in these areas being the primary users of MCPO, Asia Pacific and Latin America were the fastest growing.

Meanwhile, the group also found Europe has over taken Asia in global in-house centre (GIC) set up – a form of business outsourcing.

The group’s ‘Market Vista Q1 2015’ report, also published last week, showed Europe now accounts for a third of all GIC activity, surpassing Asia for the first time in Q1 this year.

Europe was particularly popular for manufacturing, distribution and retail firms, as well as local technology firms, setting up research & development centres. 

In the near future, the group expects such activity to increase in India.

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