Speaking for myself, using payroll software costs me under R1000 per year, and once it's set up the info I have to put into the system is no more than I'd have to give if I was outsourcing the function.

If I outsourced, the cost would be around R7500 per year.

The way I see it, outsourcing HR probably has a future, but if all you do is process a payroll I'd be concerned. The actual job done by a payroll outsourcing company is just as easily replaced by a good software program.