March 12, 2024 / Accountants

What Is Payroll Outsourcing

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, while concurrently transferring the other activities on a recurring basis, to a service provider who specialises in them.

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. India is today one of the major destinations for payroll outsourcing.

Some of the reasons for this are:

Team is headed by group of Chartered Accountants which means all the statutory laws are taken care.
Cost savings for the company on outsourcing payroll processing are extremely significant and can go upto 50% at times.
Reductions and cost effectiveness can be achieved.
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 globally.
These service providers are fluent in English and extremely competent and efficient.
Where India and the USA are concerned, the time difference is also favourable, thus work completion is faster.

Payroll outsourcing 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.

Original Source: https://goo.gl/dJCWV1