Guide to HR and payroll outsourcing services in India


HR Payroll is one of the most important departments in any organization, and for good reason. It manages the financials of the company and deals with paying salaries to employees and deducting tax to be paid to the Government. Understandably, it deals with a lot of sensitive information and has no room for making any errors. This is why many organizations opt for outsourcing their payroll work to companies that exclusively manage these systems.

Choosing an HR Payroll Outsourcing Services Company

There are a lot of companies that provide HR and payroll outsourcing services in India. No matter which State your business is located in, it isn’t difficult to find an external service provider for your HR and payroll needs. Asking around in the market can be very helpful in terms of finding the right company for your needs. Internet research will also be very helpful in knowing which companies offer what you are looking for.

There are a lot of benefits to outsourcing HR payroll management. Let’s take a look at some.

Advantages of Outsourcing HR Payroll System Management

1. Saves time in learning a payroll software and implementing it, especially if your company does not have a dedicated payroll team.

2. Lets employees focus on what they do best instead of diverting their time and attention to payroll management. This prevents productivity from getting hampered.

3. Saves resources that will be spent in hiring and retaining an in-house payroll team, especially if you are a small business.

4. Prevents mistakes that an inexperienced person may make. This consequently avoids any legal penalties or fines arising from wrong payment of taxes or salaries.

5. The payroll system is handled by experts, putting your mind at ease about their capabilities and efficiency.

6. Security of a payroll system is very important. Hence, it is better to have a dedicated company assume that role. They have advanced security measures and features that protect your software from getting compromised.

7. As an employer, you do not need to constantly be at the fore of new changes in tax laws in India. Although it is good to have this knowledge, you can be assured that the payroll managing company will take care of it. You can save your time of getting into the details of it for implementing into the system.

8. The entire process of managing employees, salaries and taxes is automated and streamlined. Instead of performing manual HR functions, both employers and employees can access important information using the HR Information System (HRIS). Other functions such as adding employees, modifying information, inculcating changes in the law, are extremely easy using the HRIS.

9. If you are a small business owner, constantly updating the payroll software can be a big expenditure. The company that manages payroll has all these aspects in consideration, and hence, you don’t have to burden yourself with it.

10. Gives employees a chance to choose their preferred mode of payment. Choose an outsourcing company that provides this service. Your employees should be able to choose whether they want to be paid by cheque, direct deposit, or some other method.

11. A major benefit of outsourcing HR systems is that it helps your in-house HR team function smoothly in extreme cases. For example, your company is expanding. It has just opened a new office and you have a massive hiring drive; a lot of new employees are hired and their details need to be added to the company’s HR software. Your core HR team will be unable to handle all the pressure and maintain productivity. This is where outsourcing helps.

12. In case an HR team member who plays a crucial role in the department and its workings has to quit,  imagine the chaos that will ensue. And even amidst turnovers, a department cannot stop functioning. Outsourcing helps divide the responsibilities that the departed employee had when in the company.The in-house HR department can function smoothly until a replacement is found.

13. If yours is a small or relatively new business that is yet to get an HR department and team in place, then outsourcing is your best bet. Having an in-house HR team has its share of investment. It can skyrocket your overhead costs. At such times, outsourcing is a cost-effective option.

14. When you decide to build an HR team in-house, you can get the outsourcing company to come and train the new recruits in existing functions and roles.

In a nutshell, outsourcing HR and payroll management to an experienced company is very beneficial. If your company or business can benefit more from an external collaboration, then you will find a lot of companies in India that offer HR payroll outsourcing services. Just do your due research to find the right one, and you are all set!