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Online Payroll Services: Ready for Take Off in the Small Business Market?
AMI Partners, July 2008, Pages: 28
Will the headway made by online payroll pioneers, coupled with newer efforts from both a small business software icon and an outsourcing giant, propel online payroll to the mainstream of the small business masses?
In 1999 and 2000, software-as-a-service (SaaS) pioneers PayCycle and SurePayroll seized on the idea of using demand SaaS offerings to spark the next phase of growth in the small business payroll services market. After all, every business, regardless of size, has to run payroll. They posited that with a SaaS model, they could provide even the smallest company with the best of both worlds—the control of do-it-yourself payroll processing plus the convenience outsourced payroll, all at an affordable price.
Both PayCycle and SurePayroll have enjoyed steady growth, and attracted tens of thousands of small businesses to their offerings since then. However, they’ve lacked the brand recognition and marketing budgets necessary to make more than a small dent in the massive potential opportunity. More recently, however, established small business powerhouses ADP and Intuit have each set up shop to offer SaaS-based payroll solutions geared to the needs of small companies.
Will the headway made by online payroll pioneers, coupled with newer efforts from both a small business software icon and an outsourcing giant, propel online payroll to the mainstream of the small business masses?
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