Top 10 Payroll Outsourcing Companies in India

Payroll is an integral part of any business, so it’s crucial to get it right. Companies with a flawed or inefficient payroll system may fall into legal issues, fines, and employee dissatisfaction, which can drastically affect productivity.  Although running payroll in India can be complex, many companies choose to run their payroll in-house, but at a potentially heavy cost.

Why should you outsource your payroll?

1. Accurate & Compliant Payroll

With changing government regulations across PAN India and numerous compliance issues faced by companies handling payroll internally, the growing need for outsourcing payroll to third-party payroll experts has seen an uptrend in recent years. Payroll Outsourcing Companies have the expertise to address the complex tax and statutory compliance issues while having the systems and processes to minimize any potential payroll errors.

2. Time and Cost Efficiencies

Outsourcing payroll, enables companies’ HR departments to focus on core activities like recruitment and employee engagement, instead of dealing with the cumbersome minutiae of running payroll every month. Not only does this save companies’ HR teams significant time every month, but also optimizes the internal resources allocated to this process.

3. Confidentiality

Payroll is one of the sensitive pieces of information within an organization, and can often lead to information leakages through the grapevine when handled internally. By outsourcing payroll, companies can minimize the total number of stakeholders involved in the process, thereby reducing the risk of sensitive information being shared internally.

What is Payroll Outsourcing?

Payroll Outsourcing is when an organization uses a third-party payroll provider to handle their entire payroll and compliance-related activities. This includes:

1. Generation of certain payroll inputs like loss-of-pay deductions, overtime, arrears, and bonus calculations

2. Processing of payroll inputs to calculate the net salary payable, as well as deductions like Salary TDS, Provident Fund, ESIC, and Professional Tax

3. Filing of TDS and Compliance Returns

4. Generation of Reports and Payslips that are accessible to employees on self-service portals

5. Audit and Advice related to tax and compliance matters

According to Forbes AdvisorToday, more than 70% of the 500 Largest Companies outsource their payroll, and it is no surprise, that a growing proportion of small and mid-sized companies are also following this trend.

What should you look for in a payroll vendor?

1. Reputation in the market

The most important aspect to consider while evaluating payroll providers in India is the reputation and trust they build in the market. Companies gain a reputation in the industry by maintaining excellence in all the points below, like timely delivery, accurate processing, years of industry experience, and much more.

2. Cost Control

The cost you pay for outsourcing your payroll to a third-party vendor will be a fraction of the cost you would spend on an entire payroll team in-house. However, comparing various costs across vendors and researching any hidden costs involved can be crucial for deciding on the right vendor for you.

3. Error-free and timely processing

Error-free payroll processing and on-time delivery can reflect positively on the quality of the service given by a payroll provider in India. If possible, it is highly recommended to run a pilot payroll before opting for the service, as it will give you a clear understanding of whether that vendor can fulfill all your requirements or not.

4. Data security

The first thing that comes to our minds when we hear of a cloud-based solution is: where will the data be stored, and is it really secure? You must check for various security certifications (such as ISO-27001) that vendors have under their belts, and also validate the stability and security of their systems.

5. Customized package option

Ideally, it helps if your payroll service provider, is also your HRMS provider, given the need for tight integration between your HRMS and Payroll. Working with a Payroll Provider, who also has its own HRMS, reduces the costs and time spent on integration while being a one-stop solution for all your HR operational requirements.

6. Customer service

After-sales service is an essential component of any solution. Your employee will expect to receive their pay on time every month. It does not matter how you do it or what difficulties you may have to go through, but if your payroll vendor cannot assist you with issues and queries that need immediate attention at the time of running your payroll, you may want to explore other vendors who can provide you with this kind of support.

7. Industry expertise

Payroll outsourcing companies in India operate on efficiency and trust, both of which are obtained from years of experience in the field. Experienced payroll service providers provide you with a strong team of payroll experts who know the ins and outs of the payroll landscape.

8. Compliance filings

Payroll and compliance management go hand in hand, and adhering to all statutory compliances and their filings is a challenge most companies cannot overcome. Non-compliance can lead to heavy penalties. Hiring a separate compliance consultant leads to gaps in the process and requires one more party to deal with. Hence, companies find it more efficient to outsource their compliance to their current payroll service provider.

Now that you know exactly what to look for in a payroll outsourcing solution, let’s check out the Top Payroll Outsourcing Companies in India that exist in the market today.

Top 10 Payroll Outsourcing Companies

1. Quikchex

Quikchex is a one-stop Payroll solution designed to comply with the Indian payroll landscape. Through its group companies, it has a market standing of over 40 years in the Payroll, HR, and Staffing industries. Today, more than 1,200+ clients across PAN India trust their payroll with Quikchex, ranging from large MNC companies to some of the leading VC-backed tech startups.

What is different about Quikchex, relative to other payroll outsourcing companies, is that it not only provides comprehensive payroll outsourcing services to Indian companies but also offers clients an easy-to-use full-suite HRMS, end-to-end tax management and statutory compliance solution covering PF, ESIC, Professional Tax, LWF, Shops and Establishment, Minimum wages, etc.

Some other highlights of the solution include services like investment proof verifications, Form 16 generation, Payslips accessible by employees on self-service portals (including their mobile app), and dedicated account management support for any queries and issues that clients might have that need immediate resolution. What makes Quikchex really unique is that it provides this arguably hard-to-find package at a price that is accessible for most SMEs and enterprise clients.

Pros:

1. Provides a unique package of a one-stop, full-suite HRMS, end-to-end payroll outsourcing, Salary TDS management, and Payroll and Labour Compliance management services.
2. Dedicated account manager support with a ‘maker-checker’ system in place
3. A budget-friendly option with long-standing in the industry.

Cons:

1. Not ideal for companies looking to outsource payroll for international locations, as the solution currently only caters to India, Singapore, and Middle East markets.

2. PaySquare

Ever since its inception in the early 2000s, Paysquare has been on the list of the growing payroll outsourcing companies in India. Paysquare today offers comprehensive outsourcing solutions in the payroll and accounting domains. Due to its expertise in payroll and account consulting, Paysquare has created a niche for itself in these domains of the market. However, it does not have its own HRMS solution, which may not be suitable for companies looking for a one-stop integrated solution.

Pros:

1. They offer end-to-end payroll as well as accounting outsourcing with specific packages targeted toward small, midsized, and large firms. They also offer TDS filings with statutory compliance management beyond national boundaries.
2. They offer a “MyPayroll” employee self-service portal through which HR administrators can monitor various aspects of their payroll and employees can download payslips, view CTC structures, apply for reimbursements, etc.

Cons:

Paysquare is a service-focused solution and may not be suitable for companies looking for a complete HR solution with attendance tracking, leave management, etc.

3. Zing HR

ZingHR offers a range of HR, payroll, and HCM solutions for mid to large-sized enterprises. Some of their offerings include end-to-end HRMS solutions, workforce productivity solutions, and talent management solutions. They currently operate in India, Singapore, Australia, and a few other locations around the world. Enterprise-level companies can certainly benefit from their suite of products, but they may not be ideal for smaller companies only looking for simpler HRMS and payroll outsourcing.

Pros:

1. They provide payroll outsourcing and compliance management plans based on domain expertise. (E.g., ZingHR Manufacturing Plan manages payroll for manufacturing companies based on challenges like shift customization, OT calculations, and other similar challenges prevailing in that specific industry.)

Cons:

1. From a usability and budget perspective, their solution may not be targeted toward smaller and mid-sized companies

4. ADP

ADP, or Automatic Data Processing, is a leading global payroll service provider, headquartered in the US, having made their entry into India a couple of years ago. They offer a range of products classified based on employee strength and global presence.

ADP can meet all your payroll and compliance requirements with additional functions like “Smart Compliance” and an automated live payroll and compliance track. ADP is also regularly updated on its compliance legislation globally. Most importantly, ADP is pricier compared to other options on this list and may not be suitable for small to mid-sized companies.

Pros:

1. Suitable for an organization looking for a global payroll and compliance outsourcing solution. Their long-standing in the industry, and global scale is also a plus.

Cons:

1. Not suitable for organizations looking for a full-suite HRMS along with a payroll outsourcing solution, as niche HRMS modules are not available.

5. Easy Source

Easy Source is an HR Solutions company that provides Payroll and Manpower Outsourcing, PEO, and other managed services. They have over 15 years of experience in HR solutions and have over 300 clients in their portfolio. They have an in-house team of 75 experts who provide 24/7 support for any resolution that you might need regarding your payroll.

However, it is important to know that Easy Source is a service and consulting firm, which means they do not offer any software solutions to their clients. Hence, it may not be suitable for organizations looking for a complete end-to-end HR and payroll software solution along with outsourcing services.

Pros:

1. Suitable for companies looking for a payroll and manpower outsourcing solution along with PAN India compliance management.

Cons:

1. Although they do provide a basic employee self-service portal, it is important to note that this cannot be considered an alternative to a full-suite HRMS.

6. Excelity Global

Excelity Global is a payroll processing, compliance administration, and human capital management service provider with over 400+ clients across 17 countries in the Asia-Pacific region including India. Along with Payroll Outsourcing and compliance services, they also provide basic Payroll solutions and an Employee self-service portal for your employees to check payslips, mark attendance, etc. They also provide seamless integration options with most HRMS Software that are popular in the industry. However, it is worth noting that it is a service provider company and wouldn’t be ideal for companies looking for a full-fledged HRMS or a Payroll Solution.

Pros:

1. Provides complete payroll outsourcing and compliance management services with integration options for most HRMS Solutions. It is suitable for companies looking to outsource their payroll for Asia-pacific locations.

Cons:

1. Not suitable for companies looking for a Full Fledged Payroll or an HRMS solution along with outsourcing services.

7. Osource

Osource has been a global player in the IT and business processing outsourcing space since 2004. The reason Osource is on this list is because of their HRO services, which include payroll management, employee lifecycle management, HR shared services, staffing, recruitment, risk and compliance management, and many other back-office processes.

Pros:

1. Full suite of solutions in payroll management, employee life cycle management, compliance, and staffing services. They also offer HR and accounting outsourcing services as a package.

Cons:

1. They are service-centric companies and do not provide an integrated HRMS Solution, and are not targeted toward SMEs.

8. HRMThread

HRMThread by Sensys Technologies is an end-to-end HRMS and payroll outsourcing solution made for mid-sized businesses looking for a basic and affordable package to automate their HR processes. They offer both cloud-based and on-premise HR software and complete payroll and final settlement processing, along with compliance management for PF, ESIC, LWFM, etc.

Pros:

1. They provide an end-to-end cloud-based as well as desktop-based HRMS solution along with payroll outsourcing and compliance management services.
2. It is a budget-friendly solution for most SME budgets.

Cons:

1. It may not be ideal for large enterprises looking for a more sophisticated solution with complex requirements.

9. Hinduja Global Solutions

Hinduja Global Solutions (also known as HGS) is one of the major players in offering business process solutions and customer experience solutions across multiple sectors globally. The HGS Business Services Division offers various payroll services like end-to-end payroll outsourcing and compliance management; recruitment and structured staffing services as well as many other finance, accounting & HR services.

Pros:
1. Long standing in the industry.
2. Suitable for an organisation looking to outsource its payroll at a global level.

Cons:

1. Not suitable for companies looking for an HRMS Solution along with payroll outsourcing.

10. Ramco

Headquartered in Chennai, India, Ramco is another global payroll and compliance provider on our list with a huge portfolio of enterprise solutions like supply chain management, project management, and a lot more. They hold over 25 years of experience in payroll outsourcing across 100+ countries and stay up to date on global compliance laws actively. Small to mid-sized firms may find this solution more expensive compared to other offerings on the list and would be specifically suitable for companies with a global presence looking to outsource their payroll.

Pros:

1. They use AI technology for payroll automation, which enables them to validate data and detect any anomalies while processing payroll.
2. Suitable for an organization looking for a payroll solution with the ability to run payroll globally, especially in the Asia-Pacific region.
3. Long-standing in the industry

Cons:

1. Not be suitable for smaller firms as there are cheaper alternatives available.

To conclude, there are many payroll outsourcing companies in India today that provide various forms of packages to their clients. However, before finalizing a vendor, you need to check whether your vendor can fulfill all your requirements and integrate with your current payroll software and HRMS. If you are on the hunt for the best payroll or HR Software then we would recommend you check our article on the Best payroll software for SMEs in India and the Best HRMS Software for SMEs in India.