Top HR Outsourcing Services Myths: Busted

Many business owners are opting for the HR outsourcing services India has to offer. And rightly so, given how arduous, expensive, and time-consuming HR management has become. Professional employer organizations in India offer a wide range of HR outsourcing services including payroll management, employee benefits, HR administration, risk management, compliance, recruiting services, offshore outsourcing, and more. While many organizations have opted for hr outsourcing services, many business owners are still doubtful about choosing this path. Their skepticism is completely understandable. Letting go of a part of the business that they have been managing is difficult. But that’s not only the case. The world of HR outsourcing services is subjected to many myths.

Debunking the top HR outsourcing services myths is our second favorite thing. Let’s start!

Myth 1: HR Outsourcing Services Impact Employee Experience Negatively

This is possibly one of the most common myths about HR outsourcing that we’ve heard throughout our experience. Business owners believe HR outsourcing services will create a barrier between them and their employees, but the reality is entirely opposite to it.

The fact of the matter is that with HR outsourcing services working with them, the business owners will able to improve the employee experience. With personalized health insurance and other voluntary and customized benefits, employees will have better options to choose from. Experience HR outsourcing companies can also help business owners create better HR strategies and practices, helping employees have more security.

On top of that, with an assurance that payroll and tax management will be accurate and timely at all times, they’ll be able to focus better on the tasks at hand. This will lead to better productivity, improving the overall quality of your operations. And thus goes the first myth out of the window.

Myth 2: Small and Big Businesses Can’t Benefit from HR Outsourcing

Another misconception about HR outsourcing services is that it is best suited only for medium-sized businesses. If that was true, Large scale, multi-national enterprises such as Infosys and Tech Mahindra wouldn’t have chosen Gretis India Pvt. Ltd. to outsource their HR responsibilities.

HR outsourcing services allow small business owners to focus better on revenue-generating processes, allowing them to grow their company. On the other hand, large enterprises have a lot on their plate. The amount of time they’ll have to spend on executing all HR activities will lead to less productivity.

At the same time, it’s also about scalability. As a business grows, HR management becomes more elaborate and cumbersome to handle. Preparing the HR department for scalability is difficult. An HR outsourcing services provider can take your burden and offer high-quality services.

So, it’s not the size of the business that determines the requirement of HR outsourcing services, but the willingness to let experts do their thing and focus on productivity.

Myth 3: HR Outsourcing Services Make You Pay for Things You Don’t Need

Many organizations and people with decision-making powers think that choosing an HR outsourcing services provider means they’ll get an expensive bundle of features and many of them won’t even be required. It would have been true if you were buying a one-plan-for-everyone kind of a deal.

But that’s not the case. Leading HR outsourcing service providers know that businesses have unique requirements. Therefore, they create custom plans that suit all your requirements. This way, you’ll pay only for the features that you need. Business owners need to do thorough research to find the most suitable HR outsourcing services company.

Offshore outsourcing companies are the perfect example of this. Businesses looking to build offshore teams have an HR outsourcing services company that’ll handle all HR operations for them. It’s a complete HR solution.

And in case you need only a part of HR services such as payroll outsourcing services, tax management, etc., you can also choose the same. Trusted and experienced HR firms only charge you for the services you avail, not for a package that you never asked for.

Myth 4: HR Outsourcing Services are Costly

The term “expensive” is used in different contexts by business owners. For some, expensive means a high cost of investment. For others, expensive means not getting enough return from the investment. In either case, the opinion about outsourcing your HR responsibilities is a myth.

The truth is that HR outsourcing services companies are not after your pocket. They are all about creating a synergy where you become more productive and they take care of your human resources. As a matter of fact, opting for HR outsourcing services is one of the best business decisions you can make. Outsourcing your HR management to experts can help you save up to 35% in admin costs. And if you tram up with the right company, you can save even more.

Myth 5: HR Outsourcing Services take the Control Away

The desire to keep things in one’s own control is every human’s innate nature. Business owners are no exception to this law of nature. But that’s also reasonable because losing control over operations, and HR management is among such operations.

Many business owners think that outsourcing their HR management to a third-party HR firm will take away their control and give someone else the wheel. But that’s not the case. An HR outsourcing services company becomes an extension of your HR department. Their experience, expertise, and promptness turn into an added advantage for you.

In simple words, HR outsourcing services allow you to have more control, not lose it.

Myth 6: It’s Either HR Outsourcing Services or Your In-House HR Team

While we can spend hours and hours busting this myth, we believe it’s something that must be said in the minimum words possible.

HR outsourcing services bridge the gaps with your in-house HR department, it works to make your HR department more efficient, not replace them.

Take the example of offshore outsourcing once again. Suppose you are located in the USA and plan to create an offshore team in India. Instead of creating an HR department from scratch, you can hire an offshore outsourcing company that’ll handle all your human resource responsibilities. This way, your in-house HR team will not need to travel (especially in the current pandemic) and you’ll have a fully functional HR team in both countries. This is also a great HR Outsourcing Services Myths in the eyes of people.

Myth 7: Switching to HR Outsourcing Services is Complex

Many business owners willing to switch to HR outsourcing services don’t do so because they think the process will be complex. We’d like to bust this myth by using their own turf.

When you bring a senior and experienced employee, there’s a process called “Knowledge Transfer”, right? Simply called KT, it’s an essential part of employee onboarding where newly joined seniors learn about your company and the tasks they’re going to handle. They also get to know what all has been done in a certain project so far and how much is left.

In the same eway, teaming up with an HR outsourcing services company involves complete onboarding to understand yout HR strengths and points of improvement.


All the HR Outsourcing Services Myths that we busted above prevent businesses from maximizing their efficiency. Outsourcing HR services is actually a smart move, and it’s a wise investment for industries of all scales and sizes.

Don’t let misinformation stop you from growing into a smart businessperson. Talk to an HR outsourcing services company today, discuss your requirements and open the gates to maximized productivity and minimize compliance, tax and other legal worries.

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