should large companies in the uae outsource payroll

Why Large Corporations in the UAE Should Outsource their Payroll

Payroll has been identified as one of the most fundamental functions of a successful business. When a company fails to efficiently execute its payroll services it not only hurts its reputation but also costs a great deal of time and money. Payroll typically accounts for 30-35% of internal costs within the organization. These costs quickly add up for companies with more than 1000 employees. As a company continues to grow and expand, there are many benefits to outsourcing its payroll functions. In this article, we will discuss the benefits of payroll services for large organizations with a presence in more than one country.

Benefits of Outsourcing Payroll

Trimming Costs

According to a recent PwC report, companies that internally manage payroll spend 18% more compared to companies that outsource them. That’s a significant figure to be considered. IT infrastructure, automation, and timely updates are among the many payroll functions that cost both time and money. Outsourcing can reduce costs associated with technology-acquisition and maintenance support. In addition to executing all payroll responsibilities, the payroll provider will provide access to IT support, great hosting infrastructure and software. Large corporations with operations across multiple countries can partner with one single outsourced payroll partner, which significantly reduces the internal costs associated with payroll.

Manage Compliance

Managing payroll compliance can be tricky. This is especially true for large companies and Fortune 500 companies that operate in many areas of the world. Each country and region of the world has its own rules and regulations for payroll processing and compliance. Regardless of the size of a company, businesses have to keep a constant tab on evolving legislation and government regulations that impact payroll. By outsourcing to a reputable payroll partner, companies can ensure they are up to date with every change in the local statutory laws. Not to mention, payroll providers monitor areas such as taxable items, garnishments, reporting, deadlines, and even help to navigate potential language barriers. 

Boost Productivity

Try to imagine the amount of employee hours needed to manage the duties of an internal payroll department. From payroll and accounting to compliance, each pay period, depending on the size of the company, hundreds of hours may be dedicated to properly executing payroll. The larger the company, the more manpower is needed to run efficient and timely payroll processing. By delegating this function to a professional payroll partner, HR professionals can focus their time and resources on core business functions to increase efficiency and productivity.

Minimize Errors

Mistakes can be costly, especially when they are related to payroll services. Varying tax rates, multitudes of pay scales, benefits and coverage, as well as withholdings, there are a number of opportunities for human error within an internal payroll department. Payroll professionals dedicate all of their time to understanding the various nuances of payroll activities. By partnering with a payroll professional whose entire focus and responsibility is payroll, a business minimizes the risk of error, missed deadline, or late payroll tax filings. 

Reduce Risk & Increase Security

Payroll mistakes can become red flags attracting unnecessary attention from regulatory bodies. For larger companies, a number of transactions must be completed smoothly on any given day, and errors cost time and money. Not to mention the importance of securely managing data. As a company continues to grow and payroll becomes larger and harder to manage, there is also an increased risk of embezzlement. Partnering with a trustworthy and experienced payroll partner guarantees data privacy protection, complete application-level security, and excellent recovery plans and data backups.


Are your internal payroll functions costing your business extra time and money? Has your company scaled from an SME to a large organization and you no longer have the time or resources to manage your payroll internally? We can help! Our payroll experts are ready to manage your payroll for a fraction of your current internal operating costs. With a wide range of service offerings, we can empower your business to grow and evolve without the added payroll hassle.  Focus on more strategic aspects of your work and leave payroll to us.

Contact a member of our team to learn more.

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Karim Mubarak

Co-Founder & Managing Partner

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