Before we deep dive into the question of when does your business need Employer of Record services in India?

Let’s get to know what EOR means.

EOR, basically is a part of your business that you can outsource to a specialist that significantly simplifies global expansion. EOR is a highly effective solution for global enterprises interested in covering new markets, or smaller distributed teams looking for a skilful workforce overseas.

An EOR is an external organization that is responsible for payroll, tax calculation, benefits, and documentation, while remote employees are performing work via a different company. In its pure essence, it’s the part of outsourced services which deals with transactions concerning Human Resources.

So, when do you really need an EOR?

You would typically need an EOR when you are at situation where you need to focus on your core areas of business, and you want to outsource the rest to professionals.

Typical situations when companies look for an EOR are when:


  • Hiring becomes a challenge
  • Fluctuating Talent Pool of contract workers
  • Employees are spread across various states (State law Complications)
  • Complications in Payroll & Compensation
  • Inefficiency in Benefits Management & Disbursement
  • Lack of knowledge in Local taxation / Tax complications & compliance
  • Labour Law non-Compliance

This is a big challenge for your HR team, and they are tasked with handling:

  • Training & Education
  • Workers Compensation
  • Annual Reviews, Benefits, and more.

These days companies are trying to do more with less cost and greater efficiency. One way to accomplish these goals is through outsourcing to an EOR.

Imagine the struggle for a small business with contract workers & not having a big enough HR team to help?

A major benefit for a Tech or Non-Tech Company to use an EOR in India would be:

  • EOR Remove the Obstacles to Global Companies to Hire IT Talent in India
  • High Compliance outsourced so that the company can focus on core areas.
  • Delegation of HR-related operations causing less paperwork & save costs

Also note that while an EOR is the registered employer, they do not hold any management or supervisory roles in your company. You have the sole authority to the hiring decisions, compensations being provided, Job roles and descriptions, projects that they work on, and the termination of the employees.

InsourceIndia is a pioneer in handling HR & Payroll operations with a combination of the latest technology & personal touch. We specialize in PEO/EOR in India, HR & Recruitment consulting services, and successfully serving clients globally. InsourceIndia PEO/EOR service in India is committed to assist the employer from any country to successfully set up their business in India. InsourceIndia takes care of services for HR, payroll, insurance, benefits, and risk management. InsourceIndia goes one additional step further than what generally PEO agencies offer, we provide extended services like leave management, recruiting, office infrastructure Service & HR management.