Global payroll outsourcing is a relatively new field. For these services, multinational companies have three outsourcing options for service delivery:
- Select local service providers in each region and manage them
- Select a global payroll provider (basically a vendor management model with the global provider managing many local providers)
- Shared services model of an outsourcing provider (such as Intercomp Global Services)
There are benefits and challenges with each of the three models. This paper discusses the benefits of each model as well as the cost differences, along with regulatory compliance challenges, communication issues, and other challenges.