One of the most significant breakthroughs in the field of management, according to the Harvard Business School, is outsourcing. The strategy to outsourcing is to, firstly identify the core activities which are the essence of the company and turn the management’s focus on these. Payroll outsourcing, which involves employing an outside agency to do the routine work of managing salary, its calculation and payment, along with any other related functions, has transformed into an extremely successful industry. Some of the reasons for this are:
- Cost savings for the company on outsourcing payroll processing are extremely significant and can go up to 50% at times.
- Productivity is improved, as service quality provided is excellent and this frees the company from non-income generating tasks.
- Latest technology and software for payroll processing are used.
- Indian payroll processing service providers have a very highly specialized and expansive knowledge base in finance and accounting which would be of help to businesses nationally.
- These service providers are fluent in English and extremely competent and efficient.
Payroll outsourcing to India has been highly productive for companies and has been functioning since 1997. In the past five years this industry has recorded a CAGR of 15 per cent. In short, it is a win-win situation.
Advantages Of Payroll Outsourcing :
Outsourcing payroll processing offers phenomenal advantages to the corporate sector, especially the small and medium sized businesses. Some of the advantages are :
- Cost Reduction
- No Penalties
- Direct Deposit
- Service Delivery
- Local Expertise
- Sharing Updates
- Process analytics
- Process Capabilities
- Lowers Risk Potential
- Walkouts Don’t Matter
- Experts At Your Service