NEW YORK (TheStreet) -- Paychex (PAYX) - Get Report, whose shares have surged this year amid robust forecasts for outsourcing of payroll and human resource services, may show sales growth of as much as 10 percent when it reports quarterly earnings on Wednesday.

The company's stock has climbed 12 percent so far this year, touching several new 52-week highs. And it still has room for further gains, making it a prudent choice for investors seeking a solid dividend-payer poised for revenue and earnings growth.

Paychexprovides payroll processing, human resources, insurance and benefits outsourcing services to roughly 600,000 small to medium-sized businesses, as well as offering payroll tax administration, retirement administration and regulatory compliance services.

The payroll side of Paychex' business makes up about two-thirds of total revenue, as of the most recent quarter. While growth in that business is outstripped by gains in the human resources segment, both are positioned to benefit from further market expansion, analysts say.

The global payroll outsourcing market will grow at a compound annual rate of 3.91% through 2018, according to Research and Markets, which said increasing work pressure and higher-quality services are prompting corporations to retain specialist firms.

"An effective and well-managed payroll system is an important element of a business in terms of retaining employees in their company," the firm noted in an October report.

Separately, research firm TechNavio predicts the market for human resources outsourcing will grow at a compound annual rate of 12.34% from 2013 to 2018 and named Paychex as a possible beneficiary. Among the drivers is the need for companies to cut operational costs, analysts say. 

Seizing a sizable portion of the projected growth for both payroll and human resource outsourcing won't be a slam-dunk for Paychex: The company will compete with the likes of IBM (IBM) - Get Report and Accenture (ACN) - Get Report -- two prominent industry leaders.

But Paychex has shown it can execute, beating Wall Street estimates for both earnings and revenue in five consecutive quarters. And investors expect another solid quarter Wednesday.

For the period ended February, earnings are projected to climb 4.5% above last year to 46 cents per share, while revenue is projected to climb 10% to $701 million. For the full year, ending in May, earnings are projected to be $1.85 per share, up 8%, while revenue is seen coming in 8.5% higher at $2.73 billion.

So despite shares trading at 52-week highs of around $51, the stock may reach $60 in the next 12 to 18 months, yielding 15% gains. And that's excellent value when combined with its 38-cent quarterly dividend, yielding 2.94%.

This article is commentary by an independent contributor. At the time of publication, the author held no position in the stocks mentioned.