HR Outsourcing- A Big Savings for Small Businesses in India

January 06, 2016

HR Outsourcing- A Big Savings for Small Businesses in India

HR outsourcing is helping the Indian SMEs to tackle skill and manpower issues efficiently which they face because of lack of the proficiency in their in-house HR team. Many of them opt HR outsourcing to save their time and money.

According to the Small Business Administration (SBA), a United States government agency that helps SMEs, “Normally, an average business owner spends 20% to 40% of his/her time on HR, employee concerns and the fulfillment of the government requirements.”

It’s not only about time, but money also drawn in this process. There is no big difference in India. Moreover, the economic slowdown, employees cost, infrastructure development plus many other things increase the burden on the Indian small companies but HR outsourcing offers flexibility and cost savings. It enables SMEs to reduce business operational cost all along the access of quality HR services and many more.

Significance of HR for SMEs

In the words of Steve Jobs, Former CEO of Apple, “When you’re in a start-up, the first ten people will determine whether the company succeeds or not. Each is 10 percent of the company. So why wouldn’t you take as much time as necessary to find all the A players? If three were not so great, why would you want a company where 30 percent of your people are not so great? A small company depends on great people much more than a big company does.” 


HR play key role in the hiring and taking right talent in your company. Making a competitive environment in the organization, retaining employees and keep them engaging in quality work assignments are some other major areas for which HR department is majorly responsible.

However, establishing a complete HR department in the starting days of a business is difficult. So, to deal with this difficulty competently, many Indian companies have started hiring the external agencies completely or partially to cut down their business expanses. These agencies help in recruitment, HR policies, employee services, payroll, employee engagement, training, organizational development and many more.

HR Outsourcing-A Viable Choice for Small Businesses to Ensure Big Savings

HR outsourcing popularity has grown rapidly after the economic slowdown worldwide.  It is more beneficial for small employers in India as it saves up to 35 percent of the total business cost. Cost savings, employees ‘compensations, insurance, taxes, payroll and other vast HR jobs can be handled easily with HR outsourcing.

So, it means cost cutting, improvements in efficiency, and streamlining business are some other benefits of HR outsourcing for small employers. The “ASM’s International E-Journal mentions, lower cost than having in-house HR team members is the top reason for outsourcing HR services.

The Society for Human Resource Management (SHRM’s), a world operated HRM association report confirms that 56 percent of the 169 surveyed companies agreed on that they outsourced HR functions to cut down operating costs, while other 41 percent chosen it to reduce the number of HR team members and related expenses and cost.

In addition, if a small business starts HR outsourcing right from the beginning, it helps to get right talent with fewer efforts. HR vendors also offers an access of a wide range of services which can be used whenever required, without paying to somebody on a regular basis.

The benefits of HR outsourcing include:

benefits hr

  • It helps businesses to minimize risk.
  • Protects companies from employees costly lawsuits
  • Cost reduction
  • Creating competitive environment in the office
  • Streamline payroll and management for improving and motivating the staff.
  • Help in the employees’ growth and meeting business goals.
  • Reduce employers’ responsibilities and burdens.

It means, it is a good idea to consider outsourcing of some of your HR tasks for cost saving, risk sharing, and high productivity with accessibility of the talented staff by utilizing optimal resources.

After understanding the Indian SMEs needs, SMEjoinup decided to introduce some of the best HR Outsourcing companies who are known for setting new heights in staffing, HR consultancy and recruitment in India. Business owners who want to outsource HR services in India can contact to for getting more detail about the mentioned vendors;

Some of the Best Vendors for HR Outsourcing in India

 HR Footprints (Starting Price: Rs.10000)

HR Footprint’s, one of the best HR service provider companies in Hyderabad, provides all round HR assistance for budding and established companies. It offers varied services and consultancies under one umbrella through its wide extended network pan India. If you are a startup and looking for budget friendly HR services you can go for its starting package. The company takes care of recruitment, HR policies, employee services, payroll etc.. Its services include HR functional outsourcing, Organization transformation services, HR automation, Leadership and talent management, HR process audit Learning and development etc. Though the company is specialized in HR services but to deliver desired results, it deeply understand client’s requirement first and then extend support with better and effective solutions.


  TalentPro India HR (Starting Price: Rs. 10000)

“TalentPro awarded for another consecutive year with the “Certificate of Excellence” for exemplary growth in 2013 by Inc.India!”

It is a leading HR service vendor in India, which employs a tailored approach and offers various kinds of HR and related services under one roof. SMEs and MNCs prefer this company for Payroll solutions, Compliance, HRMS, and Staffing solutions. TalentPro India HR is committed to provide the best services through its wide extended network across the country. Currently it has presence in six states pan India.


  Esskae Management Solutions (Starting Price: Rs. 10000)

Esskae Management Solutions is an emerging vendor which is appreciated for focused HR solutions, Consulting & Advisory Services, Technology Services & Solutions, and Transformation & Outsourcing Services which enables its clients to transform their companies work culture and business practices for achieving set goals fast. It is more focused on HR Transformation, HR Outsourcing (HRO), HR Shared Services (HRSSC) and HR Consulting all along the employees’ skill mapping, Capacity development, Training and Development etc.


 RH Factor (Starting Price: Rs. 25000)

RH factor is providing a number of HR consultancy services for small and big employers. It helps SMEs and MSMEs in setting up in house HR Department, Policies and Procedures formulations and many more. It is specialized in providing Psychometric Tools which are helpful from talent selection to career and succession planning. It assists through HR Consulting Solutions, Organisational Consulting Solutions, Psychometric Analysis / Testing Solutions, Financial Services, Taxation Solutions, Event and PR Services Solutions etc.

Checklist for SMEs When Outsourcing HR Services

The checklist has shared some useful tips for protecting SMEs from scam or fraud with cost savings.

  • Some agencies charge fee packages wise, while others charge service wise. So it’s important to know what exactly you are getting for the quoted amount.
  • Clarify all about the hidden charges if any on borrowed services.
  • Judge the agency for transparency in working and payments.
  • Compare the service charges on the basis of employees’ wages, recruitment and training etc.
  • Also, ask for breakdown of complete fee.
  • Have contingency plans.
  • Make a well crafted contract with fee and responsibilities or borrowed services for a long time business association.
  • Concise everything and discuss every issue frankly with the agency people.
  • It is not necessary that a famous company surely deliver quality of work. So the companies need to do their own research to get the value services within their budget.

So, whenever you think of hiring a HR Outsourcing vendor for your company, ask SMEjoinup for support. You can register below with a brief info about yourself so that; SMEjoinup team can contact you back immediately. You can mail your requirement at .

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January 06, 2016

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