Payroll is an important process to be managed in every organization which can not be avoided. You have two approaches to manage payroll which are in-house management or Payroll outsourcing to other professional organization. In-house management can be expensive and there can be serious losses due to penalties and errors caused if the staff is inexperienced. Payroll outsourcing provides accurate payroll processing and can be cheaper. Payroll Outsourcing Payroll outsourcing trend is also in a rapid development stage in India and now businesses have the option to choose any payroll outsourcing company from the list of top payroll outsourcing companies in India.

How Complicated is the Payroll Process?

Payroll management in an organization is not so easy as it seems. It needs a lot of work including lots of records, files and data management related to employees and much more than that. Payroll managers have to perform the scrutiny of employee's attendances and leaves, consider employee salary structure, make strict compliance with law and more.  Let us go over the following important things to consider when you validate whether benefits of payroll outsourcing will work for a company.

Compare the Cost of Outsourcing Payroll vs In-House Payroll Team

Very large businesses might afford the maintenance of separate payroll departments but for small and medium businesses, it can be a costly affair. If your business has less number of employees then there is a good chance that you can save money by outsourcing all your payroll activities to a professional payroll company. However for big businesses also, it can be a money-saving affair if they want to keep the hassle of payroll management out of their company. Payroll companies are professional and are always up-to-date with the latest payroll policies and taxation.

Workforce Variations

Workforce evolves and may change with time. Some organizations have seasonal workers and therefore need temporary payrolls for the workers who come and go. Managing permanent and temporary workers payroll can be problematic for the in-house payroll managers. For an external payroll outsourcing company, it is an easy and usual job to manage timely workloads and can manage payroll well in all conditions. Further different businesses manage payroll in a different and more complex way and that knowledge is well present in a professional payroll company.

Your approach towards your sensitive data

In Payroll management, the sensitive data of company’s employees is used for different purposes. It includes social security numbers, salary info, banking details and others. This can be a crucial factor in the decision of payroll outsourcing in a business willing to do so. Many businesses are uncomfortable with this concept of allowing their company employees’ data to flow out of their premises. This is a common consideration for making the decision of payroll outsourcing in any company. Therefore when making a payroll outsourcing strategy there must a degree of diligence regarding the determination of a payroll outsourcing service provider’s information security policies. The top payroll outsourcing companies have strict information security policies and therefore offer complete peace of mind to the customers in terms of their data security.

How does Outsourcing Compare to Outplacement?

Outsourcing involves contracting of any business process to another party which takes care of the process externally. Outplacement is the process of helping former employees in a downsizing company through the re-orientation to the job market. It includes career evaluation, guidance, interview preparation, job search skills and others.


Despite some important outsourcing validations needed to be made, a number of businesses have already made the decision of outsourcing the payroll function to an external provider. The top 10 payroll outsourcing companies in India have served their customers with the high degree of quality and have been managing payroll of hundreds of customers with a full accuracy of payroll processing. Figures are big in number and considering those figures, the consensus shows that outsourcing payroll is a cheaper and an option with less burden. 

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