The Top Outsourcing companies in India


The concept of outsource to India having acquired the corporate look in the year 1980 orchestrates the borrowing of services from the supplier under a contractual agreement and this phenomenon usually includes the non-core operations for the outsourcing clients. The outsourcer benefits by utilizing the outsourced services at much lower costs than incurred by the firm’s own conduct of operations or services and redirecting its energy towards firm’s other businesses to capture the product market.


The Indian IT companies have emerged as the hot IT outsourcing destination especially for the countries like U.K. and U.S. India having a huge knowledge base coupled with low costs of labour enticed the offshore companies.


The Indian outsourcing companies who have surfaced in the list of top ten globally have been operating on well-defined business models and by clearly strategizing their services. The Indian companies who have figured in the top ten on the global level include Wipro, Infosys and Tech Mahindra.

Managing the Agreement

Monitoring of the contract is imperative when outsourcing HR. First, a company must make sure the initial outsourcing agreement clarifies what services the outsourcer is going to provide. The service levels in the contract should be fairly descriptive so that when a company measures the performance of the outsourcer they are outsourcing it will be objective.


Then the customer can include a risk allocation agreement in the contract. This indemnifies the customer in case the outsourcer creates a liability because of its failure to properly perform those services. It is also a good idea for the customer to audit the vendor.


Specific monetary penalties can be included in the contract for noncompliance, or even the right to terminate the agreement if the nonperformance is egregious enough.


Another thing that a company can do is to require its HR outsourcing provider to periodically provide the company with written reports on their performance.

Additional Security

There are also insurance policies available that can provide a company some security in the HR area. Basically the insurance policy provides coverage to the employer in the event of a claim by an employee or a subcontractor, who is deemed to be a joint employee.


In America the policy usually covers EEOC violations, sexual harassment charges and wrongful terminations under certain circumstances, he continues. Most of those policies do exclude claims for Occupational Safety and Health Act (OSHA) violations and wage and hour violations. Typically it will cover some claims in the benefits area if it's a claim that a fiduciary has breached as a whole. But it typically excludes straight benefits claims, such as pensions or health claims that are not paid or not paid properly.


And depending on the policy, it may not cover any punitive damages. These policies are not part of general liability policies, they are separate; so it would be highly unlikely that a company would have the policy and not know it. However it should be remember that in passing in passing the risk to other it does not make the risk itself go away.


A Transferable Process

Outsourcing HR functions shouldn't be that much different than outsourcing any other department if prepared properly and is dependant on what that company’s goals are that it hopes to gain, what economic benefits the company gets from it, and if it advances the overall corporate strategy.


Obviously employees that are in house have a better grasp of the corporate philosophy, but compliance is transferable from company to company. So it is very possible that a company can be successful with outsourcing HR functions or parts of it.


When a company is considering outsourcing they should basically be checking and making sure that the HR Outsourcing provider being considered has the correct training, skills and programs to be able to deliver exactly the type of HR functions, which the company expects. Legal issues related to the contract between the company and the HR outsourcer can be avoided by properly written and drafted agreements to.

  • Further Tips for avoiding the risks and pitfalls of HR outsourcing 

  • Read the fine print
    When using PEO’s, not all HR Outsourcing firms protect their clients from PEO actions. Review any contract to make sure you won't be held responsible for mistakes, such as payroll tax miscalculations, made by a PEO when Outsourcing your HR. 

  • staff-india
    For one-time advice, try a consultant. If you don't relish the idea of such a binding relationship, a HR consultant can be an easier way to get your company up to speed on compliance issues.

  • Be patient. The first few months working with a PEO can be a bit challenging as it may require your business to change its practices.

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    Pay the piper. Find out when you need to transfer funds for payroll or insurance premiums. You'll want to work with a firm that minimizes their float.

  • Summary
    Some companies find the thought of outsourcing the human resources (HR) functions intimidating because it directly affects their employees. If the Outsourcing project is managed efficiently these HR Outsourcing fears can be avoided. Furthermore it is very essential to ensure that the HR outsourcing vendor complies and deals with Legal regulations, safety regulations, benefits administration concerns, sexual harassment issues.


  • Also to further ensure against the pitfalls out HR Outsourcing it is best for Companies, whilst in the agreement stages to ensure that any contracts between the company and the HR Vendor are properly drafted and well written also companies should consider purchasing insurance to add further security.


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