Trends of outsourcing payroll services

What is the trend of payroll service outsourcing?
Payroll service outsourcing is a form that businesses use human resources and specialized external systems to help them perform work and tasks related to salary calculation, deduction of compulsory insurance and personal income tax of workers.
What is the benefit of this service?

  • Cost reduction: According to the calculations of HR specialists, in an enterprise, besides personal expenses an employee may also incur other administrative expenses which is equal from 2.5 to 3 times to their monthly salary.

The cost of payroll service outsourcing is equivalent to the cost for an employee managing salary. On the other hand, businesses do not have to spend money on training, benefits, annual salary increase, seat rentals, computers, and payroll software investments.

  • Information security: Businesses can keep their payroll information in security from their internal employees.
  • Accuracy, on time: Implementing policies, calculating & bonus and welfare paying quickly and accurately helps businesses to budget effectively.
  • Time saving and cost risk limitation: Accurately and comprehensively carrying out the procedures of tax and compulsory insurance helps enterprises save maximum time and reduce risks of cost loss.
  • Increasing productivity: The service helps business executives focus their energies on business development.


The trend of payroll service outsourcing in Viet Nam
Nowadays, it is considered that outsourcing is one of the business trends, or a smart and modern business model. It helps businesses be able to compete while ensuring better performance and quality as well as better business management.
Up to now, approximately $1 billion of budget has been spent on outsourcing services around the world. Companies specializing in outsourcing services are developing a lot, offering a full range of services and areas, not only in information technology area such as programming or network management but also outsourcing of human resources, payroll service.
Payroll service outsourcing is a global trend that is becoming more and more popular in countries in our region and is being concerned  in Vietnam, especially for foreign-invested enterprises.
However, Vietnamese enterprises are still hesitating to use outsourcing services. The number of enterprises using payroll service outsourcing is only about 20% of the total number of enterprises.
But because of the rapid change of business environment and complex administrative procedures in Vietnam, especially in the working environment, most of foreign businesses are facing a lot of difficulties in the activities of payroll or issues related to tax and insurance.
In addition, in times of economic hardship, businesses are racing to reduce costs in order to survive and develop. Therefore, payroll is gradually transferred to prestigious external partners to implement in order to save costs, time, resources, and reduce the risk of the payroll of businesses.

And this outsourcing service will definitely become a natural trend in Vietnam in the future.
Minh Phuc Co., Ltd (MP Telecom) is a leading provider of Business Process Outsourcing solutions – BPO, especially on Data Entry and Data Processing, Financial / Accounting Outsourcing in Vietnam.
For more information and inquiries, please contact us at:  Hotline 1900 585853 or email


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