New Research from Stipenda Highlights Potential for International PEO Industry

New research from NAPEO member Stipenda, a Massachusetts-based company that supports professional employer organizations (PEOs) across the United States with their global employment capabilities, reveals the potential international PEO market to be worth an estimated $8.8 billion per year.

PEOs provide companies with services from payroll to managing employee tax issues and, to date, the majority of their activity has been domestically focused. As companies increasingly look to international markets for growth opportunities and the PEO market matures, Stipenda believes that PEOs will be called upon to support their clients’ employment requirements on the international stage.

The National Association of Professional Employer Organizations (NAPEO) estimates that around 2.5 million people across the U.S. are currently part of a PEO arrangement. Many of these individuals are employed in small-­and medium-­sized businesses. Owners of these companies look to outsource everything from administering the payroll and paying employment-­related taxes, to providing health benefits and securing workers’ compensation coverage, enabling them to concentrate on running their business.

Stipenda grew out of UK-­based CPM People in response to increasing demand from these same small-­and medium-­sized companies in the U.S. looking to expand overseas.

Solomon Williams, CEO, Stipenda, explains: “We were receiving a lot of inquiries from U.S. companies with around 10 to 30 employees looking for help with their employment requirements, particularly in Europe and Africa. Some of these requests came via the companies’ existing PEOs in the United States. We quickly realized the majority of PEOs didn’t have the ability to support their clients in other countries , and there was an opportunity to launch an international employee solution to work within the existing PEO framework. We decided to work in partnership with U.S.-­based PEOs, giving them a global capability.”

There are currently over 13 million (2010 estimate -­13,255,8001) people employed outside of the U.S. by American companies. If a similar proportion of these were to be covered by PEOs as are currently covered in the domestic market, this would total around 240,000 people and could be worth as much as $8.8billion in gross revenues per annum.

“The international employment market has been largely untapped by PEOs so far,” continued Williams, “but I expect that to change. With the rapid globalization of business, even small-­and medium-­sized companies need to look to foreign markets.The opportunities are there but multiple logistical challenges remain, and firms will need the support of employer organizations to address them.”

Stipenda launched in April with the opening of an office in Boston. Stipenda is an associated company of CPM People, leading specialists in global employment management headquartered in Warwick, U.K. CPM People has more than a decade of experience delivering employment solutions across the globe. The company launched Stipenda in response to the increasing number of U.S. companies looking for support managing the affairs of their employees in international markets.


Launched in 2013, Stipenda offers a global solution for professional employer organizations (PEOs). Through its international operations it has over a decade of experience in providing international employment solutions. Its services include payroll, tax management, immigration, benefit management and HR. Stipenda offers seamlessly integrated solutions for PEOs looking to support clients across Europe, Asia, Africa and Australasia. Stipenda is headquartered in Boston. For more information, please visit

Read next

Outsourcing for Uncertainty