How Employer of Record (EOR) Services Can Benefit Businesses?

Across all industrial sectors, outsourcing helps companies improve efficiency, cut costs, and devote their resources to the core aspects of their business. Pertaining to this trend, in the last few years, more organizations have been actively outsourcing their HR and payroll processes to third parties. This process of outsourcing Employer of Record (EOR) services has immense benefits for companies.

Now, as per a recent survey, almost 80% of US and European outsourcing companies ranked India as their top destination. Thus, businesses that run their operations either remotely or internationally or both can consider opting for Indian EOR services.

India’s Outsourcing Capabilities to Foreign Businesses

Over the last decade, India has become the nation of choice when it comes to outsourcing. There is a high demand for services like – Software Outsourcing, Infrastructure and Technology Outsourcing (ITO) and Business Process Outsourcing (BPO).

Companies belonging to the IT, manufacturing, production, retail, telecom, and healthcare sectors are the ones that usually opt for them. Here are some reasons why India is such an attractive outsourcing destination:

• Vast Availability of Qualified and Skilled Talent

One of the main reasons behind India being a global outsourcing hub is the abundance of qualified and skilled talent. A majority of the country’s youth is proficient in English, knowledgeable about computers, and has post-graduation degrees.

Additionally, India’s rising population ensures that there is no dearth in its workforce. Apart from this, foreign companies have the option of hiring individuals on a contractual basis. Thus, they can outsource and scale their businesses as per their requirements.

• Cost Effective

Due to India’s lower employee expenses, companies can avail of cost-effective solutions for outsourcing their business operations. This includes services like back-office operations, customer service, software development, and a wide range of other Employer of Record (EOR) Services. By doing so, they can deviate their expenses towards employee benefits, equipment, and infrastructure.

• Favorable Business Environment

Another significant benefit of outsourcing to India is its business-friendly environment. Indian companies have a long-standing reputation for high-quality services, credible work ethics, and excellent customer service.

Furthermore, professionals in India have proficiency in multiple languages. Thus, companies that operate on an international scale can reliably outsource several aspects of their business and reap the resulting benefits.

• Time Zone Difference

The time zone difference between India and other nations serves as a huge bonus when it comes to outsourcing. It allows Indian firms to provide round-the-clock service, benefitting businesses from all around the world.

• Developing Technological Innovation

Foreign companies started outsourcing to India in the nineties. Then, their requirements included services like transcription, data entry, customer support, etc. However, with technological innovations, skills, and knowledge, they started outsourcing more valuable services like research and development, engineering, etc.

• Industry Friendly Policies

Over the years, the Indian Government has been very supportive of the outsourcing industry. With simplified regulations, tax incentives, and a range of other benefits, the ease of outsourcing to India has improved tremendously.

This is another potential reason behind India’s success as a global outsourcing destination, which has significantly contributed to its economic growth.

• Compatibility with Western Businesses

India has had a long history of conducting business with Western companies. Thus, professionals here have a high degree of familiarity with their requirements, work ethics, and expectations.

Furthermore, these individuals are well known for their respect towards hierarchy. This aspect can come in very handy when working with companies having a clear-cut organizational structure.

How Outsourcing Can Help Businesses?

Opting for Employer of Record (EOR) Services can benefit businesses in several ways. Some of them are as follows:

• Improving Efficiency

For small or medium-sized companies, catering to all activities that are essential for the functioning of a business can be a hectic task. Additionally, it will require hiring or allocating employees to separate departments, which can increase costs.

Outsourcing helps organizations mitigate such hassles. Moreover, they can hire specialized teams for each task, thus improving their efficiency, service, and customer satisfaction.

• Enhance the Reach of their Businesses

A business may not have the necessary talent to handle all kinds of responsibilities. For example, they may not have a dedicated team to conduct research in target markets around the world. Additionally, they may not have local talent whom they can hire for this purpose, and recruiting offshore employees can be very expensive.

In this regard, outsourcing can be an effective solution. Companies can partner with firms that can provide them with this service at affordable rates and also scale them when need be.

• Accomplish Compliance Requirements

Nowadays, several industries have stringent privacy and security requirements. Now, if companies have poorly trained staff, there can be severe financial consequences for issues of non-compliance. Additionally, putting together an experienced workforce can be very expensive, especially for new companies.

Benefits of Availing Outsourcing Services from Executive Search Firms

Apart from cost savings, availing Employer of Record (EOR) Services can be highly beneficial for foreign companies. This is especially true when it comes to outsourcing HR and payroll services, as maintaining an in-house team for such operations can be challenging and expensive. Management consulting firms like Tecnova can provide businesses with integrated payroll and HR services via their R.I.S.E business model. As a leading Executive Search firm, Tecnova caters to multiple industrial sectors and ensures easy and cost-effective EOR solutions.

Takeaway

Over the years, India has become the global leader in outsourcing services. Its abundance of skilled labor, favorable business environment, industry-friendly policies, and cost-effectiveness make it profitable for Western businesses to outsource several parts of their business operations to Indian firms.

There are numerous management consulting firms like Tecnova which offer Employer of Record (EOR) Services. By opting for them, foreign businesses can not only save on costs but also allocate more time to other important aspects of their business.

Reference

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R.I.S.E-Global Management Consulting | Consulting firms