The evolution of human resource (HR) and payroll outsourcing began in the mid-20th century in the United States, gaining traction in the 1980s and 1990s as companies sought to delegate these essential functions. The rise of cloud technology, among other advancements, in the early 21st century further accelerated this trend.
The COVID-19 pandemic prompted significant changes to tax and labor laws, creating more compliance challenges for employers. Even after the pandemic, HR and payroll functions are rapidly evolving, particularly with the integration of generative artificial intelligence (AI).
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