The Best HR Outsourcing Companies in India

January 4, 2024
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Do you find yourself being too tied up in people management? 

Are you troubled by the inability to find quality talent for your organisation? 

Is it impacting your regular work operations? 

If the answer to all these is yes, you need HR outsourcing solutions. 

The human resources (HR) department plays a vital role in any organisation, responsible for recruiting people who make the company. Find the right skilled talent, onboard them, manage their payroll, employee benefits, tax filings and overall compliance management—this department has an exhaustive list of tasks. So, many companies now turn to HR outsourcing solutions to avail expert assistance in their HR operations. 

The HR outsourcing market in India, valued at $94.36 million in 2022, is experiencing robust growth with projections of a 25% CAGR in the coming years. The hospitality, manufacturing and IT industries see a surge in utilising HR outsourcing solutions. 

If you are a business owner who wants to focus more on growth strategy and hand over HR administration to the experts, you have reached the right place. In this article, we give you a list of the best HR outsourcing companies in India. 

What is HR Outsourcing? 

HR outsourcing refers to a system where businesses entrust external service providers to manage specific HR tasks or the entire HR function. An HR outsourcing company offers a range of services, such as:

  • Recruiting talent
  • Onboarding 
  • Payroll management
  • Employee benefits administration 
  • Workers compensation
  • Temporary staffing
  • Training and development
  • Compliance with employment laws
  • Termination

These services go beyond the mere administrative framework. HR outsourcing companies in India can also undertake compensation design, talent management, employee engagement and performance management. 

The contractual agreement between the company and the service provider builds a partnership where the HR outsourcing company acts as an extension of the company’s internal HR team. 

The Society for Human Resource Management (SHRM)’s State of the Workplace Report 2021-2022 found that nearly 72% of HR professionals feel their department is working beyond capacity. Outsourcing the HR functions can significantly reduce this burden and let the higher administration focus on the growth and development of the organisation. 

Smaller or mid-size companies do not always have flexible resources for a full-fledged, dedicated HR department. With the support of HR experts who know the local laws and regulations, such businesses have access to a wealth of knowledge. 

The Best HR Outsourcing Companies in India

India is a diverse country with laws that differ from one state to another. Hiring in this competitive environment can prove challenging, especially for foreign companies who wish to hire talent from India. Here’s a list of some of the best HR outsourcing companies in India that you can turn to for your needs: 

  1. Randstad India 

Year of Establishment: 1992 

One of the leading companies in the recruitment space, Randstad has a legacy of 30 years in the Indian market. Present in over 22 cities, they provide specialised HR solutions and recruitment services for the broadest range of skill sets and business sectors. The process of staffing begins by filling out a form on their website. They can help you tackle challenging talent needs with their expertise and innovative recruitment process outsourcing solutions. 

  1. Manpower Group 

Year of Establishment: 1997

This is an award-winning company in India that covers not only recruitment but also end-to-end HR process management. Whether you are looking for domestic candidates or offshore talent, they have alliances with major job boards, social networking sites, universities and colleges nationwide and abroad. From contingent staffing to permanent recruitment, they are equipped to deliver forward-thinking solutions. They offer various HR outsourcing services for managing people, including career management, outplacement and market analysis and evaluation.

  1. TeamLease 

Year of Establishment: 2002

TeamLease is one of the top HR and staffing solutions with a guiding philosophy of ‘Putting India to Work’. A Fortune India 500 firm, they offer digital workforce solutions from hire to retire. Some of its popular features include robust application tracking, an automated system to ensure paperless transactions and a holistic performance management approach. Besides, TeamLease has tech-enabled learning and skilling modules that offer 360-degree coverage of all aspects of employee productivity.

  1. ABC Consultants 

Year of Establishment: 1969

With 5 decades of experience in HR consulting, ABC Consultants can prove as catalysts in the growth of your organisation. It is one of the renowned HR outsourcing companies in India, with in-depth knowledge of the Indian workforce landscape and a curated panel of experts at every step. Whether you want to hire for leadership roles or entry-level teams, they can deliver quick and reliable solutions. HR consulting services offer talent mapping, diversity and inclusion, HR audits, leadership training, compensation benchmarking and performance assessments, among others. 

  1. CareerNet Consulting

Year of Establishment: 1999

Another leading talent solutions provider, CareerNet presents holistic recruitment solutions to various companies, from independent startups to large enterprises. Their AI-driven hiring solutions provide companies with data, analytics, efficiency, insights and operational mechanisms to get the best talent onboard. They are equipped for end-to-end virtual recruitment, automated ID screenings, interview assessments and fully digitised document collection, making it a hassle-free process for employers and candidates. Boasting a network of over 5 million professionals across industries, they have onboarded over 1000s of CXOs over the years. It is one of India's best HR outsourcing companies in the dynamic workforce landscape. 

  1. Adecco India

Year of Establishment: 1999

The list of the best HR outsourcing companies in India is incomplete without Adecco. They understand the dynamic hiring needs of different industries and leverage evolving technologies in their HR outsourcing solutions. They have a ‘Hire Train Deploy’ program that specifically addresses skill shortages and helps people scale up for the skills in demand. Whether a company wants temporary staffing or set up international centres, Adecco can help with end-to-end flexible engagement models. 

The Recruitment Process Outsourcing or the RPO Lite's program includes sourcing, screening, interview coordination, selection, pre-employment checks and verification, offer administration, onboarding, new hire care and exit interviews. 

  1. Allegis Group 

Year of Establishment: 1999

Among the global leaders in talent solutions, Allegis Group offers talent acquisition services to fully outsource workforce management. They empower your company by attracting great talent and help in retaining them. They understand your business culture, assess your talent requirements and develop a collaborative approach to finding the right fit. You can find top talent to meet your hiring needs through their network of job candidates and a referral-based sourcing strategy. A separate division, Allegis Global Solutions offers world-class Managed Services Provider (MSP) and Recruitment Process Outsourcing (RPO) for organisations across the globe.

What to Look For in an HR Outsourcing Company

With the growth in the trend of HR outsourcing, you will find many companies that offer similar recruitment services. However, the choice of HR outsourcing solutions can make or break your business growth. 

Consider these factors before finalising your HR outsourcing partner: 

  • Services offered: Identify your needs and requirements from the potential HR outsourcing services. While most HR outsourcing companies in India provide customisable solutions, it is always better to ensure all your needs are covered in the packages. 
    If you hire an independent contractor and wish to include them as a full-time employee in your workforce later, check if the HR solutions offer a provision to convert them to an employee while handling all the regulatory compliance.
  • Communication approach: During initial interactions, analyse their communication style. 
  • Are they open to feedback?
  • Do they show a willingness to accommodate your needs?
  • Are they open to negotiations? 
    Answers to these questions will determine the rapport you share with them as partners. It is important to remember that HR outsourcing solutions are an extension of your business, so you should expect them to approach new talent with the same values and vision for your company. 
  • Budget: You cannot neglect the costs incurred by outsourcing HR functions. Ask yourself, ‘How much can you invest in HR outsourcing solutions?’ Startups or companies with budget constraints must be mindful of the services they choose to benefit from, although it could prove cost-efficient in the long run. 
  • Adaptation to Technology: The use of correct technology can optimise your HR functions and save considerable time. Look for providers who have the best tools to automate specific processes. 

According to an EY survey, employees make mistakes with their time/attendance and expenses on average more than once a year. However, many platforms have automated tools to avoid such errors. With the advent of AI technology, more advanced tools are available for HR processes. Partner with a provider that leverages the use of such tools to seek the maximum benefit out of them. 

  • Reviews and Recommendations: Lastly, always check the reviews of the provider you choose. Don’t hesitate to seek recommendations and opinions from those who work in the same industry. Good reviews provide a level of confidence in choosing the right service provider. With this research, you can also know the strengths and weaknesses of a particular outsourcing provider. 

Does Your Business Need HR Outsourcing or EOR?

When you think of outsourcing your HR department, it's crucial to understand the distinctions between HR outsourcing and employer of record (EOR) services. Both offer unique advantages, but your choice depends on your business needs.

HR outsourcing solutions mean delegating your HR tasks to a third-party provider. This can include payroll processing, benefits administration, recruitment and employee training. This is an ideal solution for companies looking to streamline their HR functions while maintaining direct control over their workforce. All the HR administration tasks will fall under the purview of your outsourcing provider. 

EOR services, on the other hand, involve a third-party firm acting as a legal employer on your behalf. This is particularly apt for companies hiring in India without establishing a legal entity there. An EOR takes care of payroll, employee benefits and tax compliance, as per the local laws of that country. This is a hassle-free solution for expanding your workforce internationally. If you want to take advantage of India’s qualified talent pool without having an established presence in the country, EOR is the best solution for you. 

Conclusion

India has a maze of local labour laws, but that has not deterred foreign companies to hire from the land. You can eliminate the hassle by relying on an outsourcing partner. Choose a reliable HR outsourcing company or an experienced EOR like Rapid, depending on your business needs.

Whether hiring freelancers or full-time employees, our team can assist you in finding the best quality talent. We will take care of their onboarding to payroll as we benefit from over 25 years of experience in the local market. We will provide your team with the best benefits and compensation. 

Rapid’s all-in-one integrated platform guarantees a streamlined process from contracts to payments, all in one place. 

For more information, book a demo today! 

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