Outsourcing is on the rise worldwide, and the reasons are clear. In the current global economic climate, companies need to save money wherever they can. And the numbers clearly show that outsourcing functions like payroll management can lead to significant savings compared to an in-house solution.
Studies have shown that companies who retain functions like payroll and compliance in-house can spend 18% more than companies who outsource on average. Significantly, the costs make a larger dent into overall profitability for small and medium enterprises (SMEs), where spends have to be planned out even more carefully.
India is no exception to the international trend. Finances are tight for everyone and while hiring your own payroll and compliance team might seem commonsensical, it’s more expensive and less effective than outsourcing to a specialist. Outsourcing partners take on the onus of acquiring and retaining relevant skill sets, upgrading software and staying up to date with legal requirements.
The trend has been given a boost by the Insurance Regulatory and Development Authority’s decision to exclude functions like payroll management from its list of core functions that should be excluded from outsourcing. This not only allows SMEs to reach out to partners who can handle their needs effectively, it’s also created a competitive domestic outsourcing space. Vendors vie with each other for a share of the market, ensuring that their skills and costs are attractive.
The winners are the SMEs who can now rely on an outsourcing partner who understands the arcane details of payroll management or compliance and offers services at a great price point. An outsourcing partner with a proven track record and a commitment to service excellence; someone just like Alp Consulting, in fact! Find out if we can help you save sensibly and function more efficiently by dropping us a line. We look forward to hearing from you.