The market for payroll outsourcing is contested by many providers. But are they all the same? Or do you need to think more carefully about to whom you trust your employee data? Is cost a measure of value, or does it foreshadow other challenges? Here are some key points to consider:


Many outsourcing providers drive their costs down by exploiting cheaper labour available in countries throughout Asia and in India. Attractive as that may appear, ask yourself:

  • Can an overseas team garner the same experience as a local payroll specialist?
  • Are remotely located teams trained to handle exceptions, or just standard processes?
  • How do teams remain trained in new regulations, such as STP, JobKeeper or Annualised alaries?
  • How quickly will my queries be attended to and answered?
  • How easy is it to meet with my team if necessary?

Language and Expertise

Conversational English is spoken by payroll providers who are based off-shore. But technical terms do not form part of this language. Be mindful that specific Australian award conditions or entitlements may not be as well understood. Do your homework. Make sure your provider has in-depth knowledge of the Australian payroll landscape and can articulate it.

Data-privacy and security

Data sovereignty has to be a priority. For as long as your employee data resides in Australia, it is subject to Australian data privacy legislation. Data hosted off-shore is not subject to these laws, and vendors need not protect and defend your data as robustly as a local provider.

Time to Manage

Engaging a cheaper overseas provider is feasible for organisations that can manage the relationship and output. However, dedicating resources to monitor communications, corrections and rework, enquiries and data protection will negate the benefit that outsourcing offers.

The Frontier Software difference

The decision is one of cost vs. value, and there is no direct relationship between the two. Only you can decide at what price you will put your data in another company’s hands.

A Frontier Software outsourcing solution ensures:

  • Every team member is a local
  • Every team member is a specialist in Australian payroll conditions
  • Your team is available to you during your business hours
  • Your data is hosted in Australia and subject to Australian data sovereignty protections
  • Your data is held in a purpose-built, award-winning software for Australian payrolls

You can trust your payroll to the locals at Frontier Software.

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