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Trends in Payroll Outsourcing

Posted @ January 18, 2015, 8:41 am under (Payroll Outsourcing Services)

We are a payroll outsourcing company actively involved in outsourcing payroll in Delhi, Gurgaon, Manesar, Noida, Greater Noida, Faridabad. A draft note on recently concluded workshop on Payroll Outsourcing Trends is given below:

The decision to outsource is a major strategic one for most companies. Outsourcing is not only Cost Effective as there is no additional cost of IT infrastructure, software and specialized manpower, It increases operating efficiencies and one can have immediate access to expert knowledge, Efficient monthly Management reporting and statutory compliance w.r.t. TDS, PF, ESIC, Labour welfare fund and Profession Tax.

Recently a new trend emerging in outsourcing is employee leasing, in which specialized vendors recruit, hire, train, and pay their clients' employees, as well as arrange health care coverage and other benefits.

The growth in outsourcing is partly the result of a general shift in business philosophy. All aspects of the company's operations were aligned around the core competence, and any activities or functions that were not considered necessary to preserve it were then outsourced. Today, outsourcing is embraced by companies of all sizes and industry orientations. 

In fact, some companies are putting themselves at risk as a result of using outdated technology and not complying with government regulations. Vendors, by focusing on administration as part of their business model, provide better service enforced by contracts and service-level agreements."

Outsourcing can be undertaken to varying degrees, ranging from total outsourcing to selective outsourcing. 


Companies that decide to outsource do so for a number of reasons, all of which are based on realizing gains in business profitability and efficiency. Principal merits of outsourcing include the following:

Cost savings, Focused approach, Flexibility of operations are some key advantages besides outsourcing as a way to gain access to new technology and outside expertise. This may be of particular benefit to small businesses, which may not be able to afford to hire computer experts or develop the in-house expertise to maintain high-level technology. When such tasks are outsourced, the small business gains access to new technology that can help it compete with larger companies. Outsourcing is a arrangements require quality service. Outsourcers are well aware that this accountability is both practical and legal.


Some of the major potential disadvantages to outsourcing include poor quality control, decreased company loyalty, a lengthy bid process, and a loss of strategic alignment. All of these concerns can be addressed and minimized by companies who go about the outsourcing process in an informed and after due deliberation.


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