How Much Does HR Ousourcing Cost To The Small Businesses India?

January 07, 2016

How Much Does HR Ousourcing Cost To The Small Businesses India?

HR outsourcing has a huge benefit for small businesses. If you are thinking of switching to a managed HR system in your small organization, the main questions that will hit your mind include how it can be done and what will be the cost?

Where Does HR Outsourcing Start?

Building a strong team is essential for every business and it can be put up in two ways either by taking the charge of hiring in your hand or enlisting a HR professional.  Generally, HR role start with the foundation of your company but sometimes your budget does not allow spending on building an in-house HR team; hence outsourcing is the alternative option to choose. So, it is an effective technique for many small companies to handle HR concerns smartly within a limited budget. They can think of HR outsourcing at any stage.

How it works?

Conducting interviews to find a right candidate could be a laborious and time consuming task, especially during start- up days when you need to focus on multiple things simultaneously. If you hire HR person, it will cost you more; so, HR outsourcing could be an ideal choice to start building a team of talented staff hassle free.

HR role is not limited to finding the talented people but it continued with developing, retaining, performance enhancement and retirement or termination of all of them. HR firms allow you to manage all these tasks easily with minimum efforts. Even you can involve them into your daily administrative jobs and monthly payroll etc.

hr outsourcing1

Two Types of HR Outsourcing

HR outsourcing can be categorized into two major categories:

  • PEO (professional employer organization)
  • HRO (human resource outsourcer)

PEO (Professional Employer Organization):

A PEO works as a co-employer in an organization with the fulfillment of all legal formalities. It offers a wide range of HR services including employees’ compensation, benefits, payroll and many more and always remains accountable for everything.

HRO (Human Resource Outsourcer):

A HRO firm works as a third party to handle a wide variety of HR services from payroll to risk management. It is completely outsourced and works independently from employee hiring to payroll but does not accountable for anything.

What are main benefits of HR outsourcing?

Shifting to an HR outsourcing offers numerous benefits for small businesses like yours. It helps to do improvements in business operations and improve company’s market credibility.


Unlimited Cost Reduction

HR outsourcing reduces cost not only by hiring employees quickly but in many other ways too like staff cut down, less legal fees, and low insurance premiums etc.

You Will Remain More Focused on Business

HR outsourcing also helps you to fulfill day-to-day administrative duties efficiently and as a result you can remain more focused on your business operations that lead to positive results in the form of fast growth. Because of your efficient working style, employees moral boost up automatically and it improve their performance all along the high retention rate.

Get Access of High Level of HR Expertise

Employees hiring and retention is not an easy task because it involves some legal and technical issues which can be a great hassle to many small businesses especially in early days. However HR outsourcing makes it easy and ensures that your company remains in compliance with the modern HR practices and techniques.

How to Choose HR Outsourcing for Maximum Savings?

Typically, there is an overwhelming number of HR outsourcing companies for hiring who can help you to manage payroll services. But the question is how do you narrow down the best one for you? Here are few ideas:

  • HR is a wide field including administration, payroll, recruitment, training etc. Zero down Your Needs before approaching a HR consulting firm so that you can discuss exactly what you are looking for and what results you want from outsourcing.
  • Consider referrals of your fellow business owners as it will help you to get to know the history of HR consulting firm easily. Check with multi number of businesses to find out the best one.
  • Make sure that the selected firm is approved by the responsible authorizes and have very good market reputation.
  • Do research to get together the background of the organization with number of experts and how old it has been in the business?
  • Ask for fee and other pricing detail in writing. You need to compare the services and charges among other firms so that you can find the best one for you.
  • Don’t accept the charges, what the HR Company is quoted. Negotiate to get best prices on best services.
  • Always prefer face to face meeting with the firm’s representative so that you can ask questions about the services and anything else you want to know about the pricing and services etc.
  • Don’t sign the contract without reviewing it thoroughly. It is always good to clarify all your doubts about the services and fee before signing the agreement!

Recommended HR Outsourcing Firms

Which HR outsourcing firm is the best option? Well, read down to get to know about the companies which are near to you. The list is compiled by

  TalentPro India HR- Chennai

The first option is TalentPro! The company is based in Chennai and has been awarded repeatedly with the “certificate of excellence” by Inc.India for excellent growth. It has TalentPro’s an online employee and client self-service that provides quick information’s to the employee “on the go”. The company is planning to coming with many other enhancements for mobile attendance and leave management system.  The company has a wide extended network with established office setup in six states. You can trust on this company to get a wide range of HR modules to handle:

  • Payroll
  • HRMS
  • Labor Law Compliance
  • Staffing etc..

   HR Footprints- Hyderabad

Second in this list is HR Footprints Management Services Pvt Ltd! The company is based in Hyderabad and listed under Placement Services for IT Industry. It is growing fast since the setting up on August 2006. It offers all round HR and staffing solutions for all size businesses. To deliver the best results, it firstly understands your requirements and then offers best and cost effective solution. The varied services and consultancies offered by this company include:

  • HR functional outsourcing
  • HR automation
  • Organization transformation services
  • Leadership and talent management
  • HR process audit Learning and development
  • Recruitment, payroll, employee relations & retention etc.

 Esskae Management Solutions- Pune


Third option is Esskae Management Solutions! It is based in Pune and known player who provides HR and staffing solutions in different areas small and big companies. You can approach this company for Consulting about HR Services. It is known for the delivery of excellent services in the areas like:

  • HR Transformation
  • HR Shared Services (HRSSC)
  • HR Outsourcing (HRO)
  • Employees’ skill mapping
  • Training and Development etc.

 RH Factor -Mumbai

RH Factor is fourth vendor in this list! The company provides quality human resources and tailor made service for employees retention and related services. According to your needs it offers Psychometric tools which are very effective in talent choice and succession planning. It assists with:

  • Psychometric Analysis / Testing Solutions
  • Organizational Consulting Solutions,
  • HR Consulting Solutions
  • Financial Services
  • Taxation Solutions, Event and PR Services Solutions etc


 cloud9india  Cloud9India-New Delhi

Cloud9India is fifth one! The company is based in New Delhi but spread footstep across India. It is providing services for more than 15 years in the HR domain and grown amongst the most trustworthy human capital advisory companies in India. The firm believes in professional and ethical business practices that enable it to deliver the highest standards recruitment services to bridge job seeker and employer gap. APTARA, GAP India, HDFC Sales, Ingvysya Bank, ITC, Wills Sport are some of the company’s top clients. It is growing fast with the delivery of special recruitment programs for the following segments:

  • HR Services for Start Ups &SMEs
  • Entry Level & Bulk Recruitment
  • Mid Level Recruitment
  • Leadership & CXO Search
  • Sales Force Recruitment
  • Employee Training Programs


If your business is in budding stage, consider the above mentioned vendors. Their pricing of all of them is very nominal and they deliver more than what you expect. Just keep in mind that the actual fee may vary as per the selection of specific services that you selected or your company requires. You can start using these services with paying approximately Rs. 5000-10000 minimum amounts. However you need to contact to to know more about better understanding of this pricing and mentioned vendors. 


So Hurry Up! Get in touch with SMEjoinup team by filling the registration form or mailing your queries on Or, call on 8800225467 or 07838006101 for assistance!







January 07, 2016

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