6 Reasons Why HR and Payroll Outsourcing is Essential for Small Businesses in India

Outsourcing is not a new concept in India however it’s gained immense importance in last few years. It allows businesses to use expert knowledge for HR and payroll services without spending a huge amount on it.

Here are 6 reasons why HR and payroll outsourcing is vital for your small business in India:

Saves money and time

Time and money are crucial for a small business or a start-up because they have limited resources and sometimes not able to spend time on payroll processing and not able to hire the separate HR person due to budget constraint to handle employees related queries and to process the salary. Ultimately, you have to manage your work schedule to handle different work like: Core Business Functions, Administration Work, HR Work and Payroll Processing etc.

Sometimes you don’t have time when salary days come and you always feel yourself in a tricky situation. A better option is to use a payroll management solution that allows you to streamline activities, including the company’s key HR and payroll goals. HR and payroll processing services just mean that a third party handles your HR and payroll saving you time and money. 

Advanced compliance

There are many day-to-day changes in different payroll compliances. Small businessman normally busy in many other activities and not able to get knowledge of these changes

A payroll and HR service provider will help you to manage different compliance under single window, including changing rules and regulations as per the current government laws. The payroll service provider will make sure that they are up-to-date with the rules, which will help them to avoid mistakes. 

Employee Satisfaction

If you not paying salaries to employees on time and making wrong salary payments. Making mistakes on paychecks and paying salaries late can demoralize your employees. Employee’s satisfaction will always be high if you processed salary accurately and on time. Employees also have many commitments and even delay in one day can break their commitments.

So, use payroll-processing services for a building a trust between employee-employer relationship and outsourcing this activity helps you to ensure that your employees are paid on time and accurately. 

Expert Knowledge

Managing any business is a hectic and time-consuming task. As a business owner it may be possible that you have good understanding of HR and payroll process and policies but payroll processing takes too much effort and responsibilities. There are many changes comes on daily basis and it is always not possible for you to update yourself. For this you have to hire the separate HR Team.

For small business it is not possible to hire separate HR person for handling all the things related to payroll processing. HR and payroll outsourcing helps you to get support from expert professionals. The HR and payroll services providers are experts in HR and payroll activities which help you in fulfil the requirements of your business.

Automation Support

Payroll service providers now a day’s providing cloud based software solutions and they updated with the advance technologies and new features, you can automatically update your data along with many other HR and payroll activities.

They provide automation of various processes like: Attendance through ESS Portal, Mobile App or Biometric Devices. The employee and HR self-service portals allow tracking of details like leave, attendance and payslips etc.

Data Security

Data security is a main aspect of any business. There is a risk in maintaining in-house data security because of a risk of data theft and fraud as the systems are not secured.  A payroll service provider always used advanced security system and structure because they required maintaining data security of many businesses. Whether you are accessing Payroll data via software or sharing any sensitive details of employees, it is always secure in the network.

Due to above reasons they are doing additional care of your “data security” and “employee information”. They always take back up of your payroll data and information for any disaster recovery and management.

Before outsourcing

If you searching and HR and Payroll Service provider than follow the following steps

First of all list out your requirement according to your business structure for services you required related to HR, Payroll and related compliances.

Search various vendors in market and take complete DEMO of services they providing and pricing structure to evaluate the pricing offered by various providers you wish to work with.

Analyse the benefits offered by different vendors and then shortlist according to your organization need. Keeping this in mind, you can move forward and can select the right service provider.


As a small business you may want to handle in-house HR and Payroll process however due to busy in many other business core activities you could start experiencing in delays and sometimes mistaken in processing of salary payments. It is best to take support from experts and outsource your payroll processing services.

HR and payroll outsourcing in India with IBSOL can help you in streamline your HR and Finance department. They provide you all services as per your Company policies and timely deliver payroll dispatch, calculations and tax deductions. To learn more about our HR & Payroll services visit our website.

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