All You Need To Know About Professional Employer Organization (PEO) In India

Professional Employer Organization

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With 1.4 billion people and a talented workforce, India is proving itself to be an attractive destination for foreign investors with Professional Employer Organization.

Besides, these strong market opportunities and high-value services throughout the supply chain are key factors behind India’s success.

However, doing business in India can be a complex affair without adequate guidance from local experts. So, what can you do to simplify it?

Well, if you are considering expanding your base in India, you must partner with an Employer of Record (EOR) or Professional Employer Organization (PEO).

Not only will this help you facilitate hiring, managing, but it will also let you set your objectives.

Read on to discover the benefits of using a PEO in India and why do you need one. 

What is Professional Employer Organization [PEO]?

PEO is an organization that manages human resource (HR) outsourcing and other administrative tasks such as payroll and visa and sponsorship on behalf of other companies. It is an alternative to having an in-house HR department in India. Thus, relieving your company of any administrative and financial efforts and letting you focus on your core business. Some of the best PEOs in India include Husys, New Horizon Global Partners, Global PEO, and Sky Executive.

Need of PEO in India

The main goal for businesses is to drive growth and take their company to new and emerging markets. India is attracting a large number of foreign companies, especially in the IT and telecommunications sector.

Did you know, Digital India is expected to create $ 1.3 Trillion worth of business opportunities by 2021?

You might be thinking, the best way to enter the Indian market is to strengthen your brand image. Well, it is. But, the simplest and most effective way of setting up operations is to use a PEO.

It will help you streamline business operations and eliminate the usual administrative barriers involved in international expansion.

How does a PEO in India Work?

When hiring employees in India, establishing a branch office is not easy. It is a lengthy and expensive process. A PEO hires employees on your behalf and helps you make legal contracts for them as per the Indian labor laws. As a result, you can let go of the burden of compliance, and you will have employees working for your company in a matter of days.

A PEO lets you test markets to respond better to growing business needs in India. Moreover, you get control without taking on legal liabilities, contractor risks, or sacrificing talent. A PEO also handles visa sponsorships and the onboarding process.

Outsource Your HR Department With Specific Measurabilities

Advantages of using a PEO in India

Professional Employer Organization Primarily focuses on different aspects that organizations Through PEO companies get relaxation from obstacles that they face in administration and other operations related to employees.

Let’s have a look at some pros and cons of Professional Employer Organization (PEO).

Eliminate Compliance Issues

One of the biggest benefits of using a PEO in India is that it will make sure your organization complies with local laws and employment regulations. As the legal Employer of Record, it ensures that tax is deducted every month and paid on time to the relevant authorities.

Cost Savings

Expanding business in another country can be an expensive affair. However, using a PEO can help you enter the Indian market without wasting resources on costly and time-consuming avenues. It will help you generate invoices for every month for employees’ salaries and manage expense reimbursements and management fees. 

Explore New Markets

Every stage of business development involves risks. By using a PEO, you can test new markets with ease. Moreover, you need not worry about having your own legal entity and subsidiary, which can create unnecessary blockages in your growth.

Every stage of business development involves risks. By using a PEO, you can test new markets with ease. Moreover, you need not worry about having your own legal entity and subsidiary, which can create unnecessary blockages in your growth.

Easy Contract renewal

You can choose to hire permanent, part-time, or contractual members. A PEO will support you with contract renewals and deal better with your employees.

Termination Negotiation

Laws regarding termination of employment can be complex for those who are not familiar with Indian laws. However, a PEO can help you do this and much more in a fast and efficient manner.

What Workforce Strategies Need To Be Implemented Post COVID as a HR?

Things To Consider Before Choosing A PEO in India

Still, thinking why should you go for PEO in India? Here are a few parameters to consider when you look forward to hiring a PEO in India.

Experience and Organizational Credentials

Before you finalize a PEO, you must ensure that it has been in the market for some years and is trusted by other firms. You can even do a competitor analysis and find out the PEOs used by them. 

Go Beyond Accreditations

While PEOs have government approvals, it is better to look for testimonials and do your research before hiring one. A PEO that has helped companies from different industries can be your pick. You can also look for employee reviews on salary and payroll processes. This will help you get an idea of their credibility and work efficiency.

Compliance Needs

You must look for a PEO that provides 100% compliance. It is essential for both you and your employees.

Matching Time Zones

A PEO that is available at least half of your work time will help you resolve any issues seamlessly.

Wrapping Up

Be it faster market entry, reducing spends, employee onboarding, and keeping up with legalities, a PEO can help you fulfill that and much more. Understanding the tax system, insurance, leave policies, and negotiation of allowances can be greatly simplified with a PEO.

Go ahead, and kickstart your search keeping all the mentioned points in your mind to establish a firm base in India. Got trouble in understanding write us at

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