Untitled

Choosing to select a PEO in India is a wise decision. You get to hire remotely in India and scale your business exponentially. But before starting business with a Professional Employer Organization in India, you need to consider certain criteria. The criteria that you will be using to evaluate a PEO service provider in India.?

In the USA, businesses have clear standards to measure a PEO. Will the PEO provide medical and dental insurance for the employees it hires? Will it contribute towards employees’ 401 (K) funds? What about House Rent Allowance benefits? How will the PEO agency maintain data security for the information it collects from the recruits? These things matter to American employees and, therefore, to American employers. But if you use the same benchmarks to examine PEO services in India, you will find that the scenario here is different. Often, insurance premium is part of the salary breakdown. The healthcare system in India is also vastly different. Insurance is not mandatory to get medical attention or health-checks.

Indian PEO agencies have also adapted their USPs to keep the hired employees loyal and happy. Indian PEOs and American PEOs are very different. It is for these reasons that evaluating a PEO agency in India would not be correct. To help you make a learned decision, we are sharing with you 4 criteria to select a PEO in India.

4 Criteria to select a PEO (Professional Employer Organization) in India:

Local compliance for the employees

All employers are required by law to provide appropriate HR paperwork for their employees for perfect local compliance. Failing to do so will have regulatory consequences for the Indian PEO service provider. Before partnering up with a professional employer organization, ensure you are signing up with a compliant organization. To be certain, examine for the agency’s track record and, if needed, ask for referrals as well.

Capability to hire competent resources

A PEO model offers you solutions to hire resources in India without forming a legal entity. However, the challenge for businesses is not just to hire resources, but to hire quality resources. Therefore, look for PEOs in India who have their own network. They can make the talent pool of human resources rightly available for you.

Moreover, your PEO service provider needs to ensure; the resources they have hired for you are loyal and satisfied in their job profile. So, beyond just finding a PEO service provider who can hire on your behalf. You should look for companies that will implement solid HR practices. These practices will keep your resources engaged and happy with the work environment.

Managing onboarded resources

As you know, the PEO model works such that you get work-ready recruits. This is while the Indian PEO remains in-charge of payroll, employment benefits, taxation, etc.

However, a great PEO partner would also help you extract peak productivity and throughput from your remote team. This is done through extended IT and HR support. It is to ensure that employees don’t face any challenges in doing their best work.

Turnaround times of PEO agencies

When deciding to select a PEO in India, consider the timeline that the PEO service providers can offer. Turnaround times are important because they represent the PEO’s skill and experience. An new PEO service provider can get stuck up in the process and cause unnecessary delays.

Besides, you may not always have the time to wait for your remote team in India to be operational. Having a skilled PEO partner who can speed up the recruitment process is always a plus point. 

How can you ensure success with your PEO venture?

It can be ensured by selecting a PEO in India who has carefully studied the PEO model. The PEO model of the USA and adapted it to the Indian market.

Remunance as a success partner

Rajendra Vaidya, Founder of Remunance, has conducted deep research of the PEO model and successfully molded it into the Indian scenario.

Today, Remunance is powered by an accomplished team of experts who understand local compliance like the back of their hands. Our talent pool is sourced from 7+ channels, including Tier-1 Indian educational entities and reputed job portals.

We provide comprehensive solutions through our end-to-end HR services. That includes talent sourcing and onboarding, resource induction under Remunance and bank account setup. It also includes payroll processing, employee taxation, insurance and benefits administration.

When you sign up with Remunance, the entire journey from selecting resources to making them operational is way more convenient.

The idea of starting a business in India is observed to be a profitable one from various aspects. India is one of the best countries to expand your business internationally! Before thinking of starting any business, a clear understanding of the location of doing business, its market, the culture of work, and the benefits to your business is necessary.  It is also important to know which route to be adopted to kickstart a business. We will be doing exactly that through this blog!

Keep reading as we will take you through how India has become a dream destination for business expansion. We will also make you aware of the business models which can be used by small and medium-sized enterprises (SMEs) for establishing the business in India. 

Indian culture

India is always known for its heritage and traditions. It is one of the oldest civilizations that harbors a unique and complex diversity, that gracefully embraces change and growth. 

When we say India, the beautiful Taj Mahal, and the serene Bay of Bengal come to our mind. But as we explore more, we see that India offers a kaleidoscopic variety not just in culture but also in art, spirituality, philosophy, and trade. Twenty-seven states of India have their dance forms, music, craft, cuisine, and languages, making India the perfect marketplace of South Asia. 

As of today, India is the second-most populous country. It is one of the fastest-growing economies in the world and is showing all-rounded progress since its independence. India’s development can be seen from its research, education system, space programs, technological advancements, and trade activities. 

India is catching up with other developed countries and creating better work and employment opportunities. Be it work-life balance, work environment, or relationship with other employees, India is always providing a relaxed, productive, and progressive working culture for every employee in India. 

Coming to the business ethos of India, the government has played a key role in empowering various industries and sectors. These emerging industries in India, offer tremendous growth opportunities for small and medium-sized businesses (SMEs).

Government initiatives for business development in India

The government of India is playing an important role in empowering businesses in India. It is constantly inculcating new programs and initiatives for growing business opportunities in every city and state in the country. 

For instance, the government of India is leading by developing mobile-friendly websites and apps for citizens, giving a push to the ‘mobile-first’ mindset. This has inspired every business to make a shift towards using online platforms with a mobile-focused approach, making Indian customers and businesses tech savvy. 

The government has launched the National Broadband Mission for providing broadband access to all villages by 2022. You may have also heard about the widely promoted ‘Make In India’ initiative. It is designed to transform India into a global manufacturing hub. The government’s India Innovation Growth Programme 2.0 (IIGP), Startup India along with Make in India programs are enhancing the tech skills of the population of India and encouraging young entrepreneurs and inventors to foster innovation.

In addition, India has set a goal of developing 10 Million future-ready tech professionals through the Ministry of Education’s Digital Skilling program where it has designed apprenticeship programs in private partnerships with private sector corporates in 72 different areas including Artificial Intelligence, Cloud Computing, and Cybersecurity. In fact, the program ‘Digital India’  introduced by the government has given a solid boost to digitization in India. It has motivated many companies to function remotely and transform their ways of doing business. This proved to be helpful for companies to flourish their business, especially in tough times such as the COVID-19 pandemic.

The government digital platform,  CoWIN is a shining example. It is a digital application used extensively for obtaining information regarding vaccine drives during the COVID-19 pandemic. 

SahiPay is another digital platform that aims to provide easy access to insurance services. It has pushed the Fintech industry revolution further, by giving doorstep services for banking, insurance, mutual funds, EMI collection, and travel booking.

To understand and appreciate new India better, it is important to note its economic growth in recent years.

Economic changes in India

The Indian economy has the distinction of being one of the fastest-growing economies in the world. Political stability after 2014, liberalization and progressive business policy have unleashed the growth of the Indian economy.

As per the Reserve Bank of India, the economic growth rate for 2022-23 is projected to be at 7.8%. India is currently a middle-income country and is the world’s fifth-largest economy. According to the EY-FICCI (The Ernst & Young and Federation of Indian Chambers of Commerce and Industry) report, the GDP ratio is expected to reach 0.4% by 2025 from 0.38% in 2019.

The service and industrial sectors account for 54% and 18% respectively, of the country’s GDP. India is trying to recover from the hit it took during the pandemic and has also retained its position as the third-largest in the world in terms of purchasing power parity (PPP). 

Emerging businesses sectors In India

India is now a business powerhouse for entertainment, pharmaceuticals, healthcare services, education, agriculture, logistics, Information technology, telecommunication, textile, and infrastructure. In recent years, India has shown huge development in fields such as space technology, entertainment, and even trade. A closer look at these emerging industries in India provides a better picture.

Information Technology 

India is known globally to have a technologically driven knowledge economy due to its Information Technology (IT) industry. The IT industry plays an important role in enhancing the productivity of almost every other country sector.  Over the last decade, India has become an IT hub for many software companies across the world. It is now known as the world’s largest sourcing destination for the IT industry. The growth of the IT and business service market in India is projected to reach $19.93 billion, by 2025.

Telecommunication

The Indian telecom industry has grown at a rapid pace post-liberalization. New technology such as Wi-max, Virtual Private Network (VPN), and data services have been instrumental in enhancing business in the IT and BPO sectors.  It is estimated that over the next few years, the rising use of mobile phones and reduction in data costs will add 500 million new internet users approximately, thereby creating various new business opportunities in India. Additionally, by 2025, India will start to have 5G-centric technologies such as robotics, cloud computing, AI, etc.

 Entertainment

The entertainment industry in India has grown out of its black-and-white era and entered multiplex and Over-The-Top (OTT) platforms such as Netflix, Amazon Prime, etc. This is because of the advances in virtual reality and the use of 3D and special effects by developers. 

This has also provided new business opportunities to ancillary sectors such as dubbing, recording studios, animation, cinematography, and other content-creating options.

Aerospace and Defense 

India is the third largest military spender. It is also known to have the second largest armed force in the world. India is revolutionizing its defense sector, by empowering startups and research projects. The government has also designed a few schemes such as DTIS (Defence Testing Infrastructure Scheme) and iDEX (innovations for Defence Excellence) to uplift the defense and private sectors.

Commercial space sector

India’s commercial space stands out as one of the most promising business sectors in the world. India’s space program, ISRO (Indian Space Research Organization), is the sixth largest space agency in the world, harboring a large fleet of remote sensing and communication satellites. India’s space sector has earned worldwide recognition for its successful Mars mission lunar probes and for launching 104 satellites in one mission for fraction of the cost of western nations.

Fintech India 

Fintech or BFSI (Banking, financial services, and insurance) has revolutionized the way financial services are provided in India. The fintech startup ecosystem saw a huge capital inflow to reach $4.6 billion funding across 160 deals in the first half of 2020. Fintech is also bringing in newer trends in various industries. In addition, government financial initiatives such as Jan Dhan Yojana and India Stack are accelerating the digital revolution even in rural parts of the country.

Textile 

India is now among the world’s largest producers and consumers of cotton. As per the Ministry of Textiles, India recorded its highest-ever textile and apparel exports of $44.4 billion, in the financial year 2021-22. Availability of raw materials and skilled manpower, increasing domestic market, and the rise of e-commerce are a few growth drivers of the textile industry in India. 

 Agriculture

The agricultural sector is a major source of employment for India’s population and hence proves to be an important driving factor of the Indian economy.  The agriculture sector accounts for 28% of the country’s GDP. The increasing adoption of drones, remote sensing technologies, and advanced irrigation systems have provided a boost to the agricultural market in India. 

Trade routes of India

India is constantly exploring overseas markets to develop new business opportunities. The Department of Commerce has strategized various policies and procedures for the expansion of trade and export services. 

You will find it interesting to know that Indian export is not limited to spices and cotton, but has crossed all barriers and become a major exporter of electronics and electrical equipment, pharmaceutical products, AI technology, vehicles, and various software services.

As of 2020, India is at number 18 in total exports and is also the world’s largest exporter of diamonds. It has also established markets in countries such as the U.S, Singapore, China, the Netherlands, Australia, Turkey, and so on. For more in-depth information regarding India’s top trade partners, refer to the Observatory of Economic Complexity. It also provides information regarding the import and export evaluation of India.

Service exports have taken a large leap in recent years. The IT and Information Technology Enabled Services (ITES) are contributing almost 50% of India’s total export services. The service exports scaled up to $148.3 billion in the year 2020-21. This growth was despite the effect of COVID-19 pandemic on India’s travel, tourism, aviation, and hospitality sectors. 

The new-age digital business in India 

With the availability of smartphones and high-speed Internet connectivity, India is on its way to becoming a digitally advanced country. Emerging technologies such as Artificial Intelligence (AI), Cloud, and autonomous systems have caused a rapid digital transformation and led to business expansion in India. 

This transformation has helped in the development of various sectors. For instance, in the healthcare sector, the development of teleconsultation and telemedicine has made it easy to provide healthcare services in remote and rural areas of India.  

The use of advanced banking applications and websites has made it easy to perform online transactions at any time of the day through smartphones and tablets. UPI payment options like PhonePe, Google Pay, and BHIM have saved our time and efforts. The time when we stood in lines for paying our bills has definitely ended! 

Digital payments are used frequently for purchasing entertainment and sports tickets. Moreover, digitization has led to the growth of e-commerce and therefore led to global business expansion in India. You name any brand for buying any product, from merchandise, jewelry, footwear, and other accessories to furniture and housing appliances. You search for it and it’s available on every digital platform.

There are many startup ideas that took the digital route and developed successful business models. There are 105 Indian startups that have already made it to the unicorn club as of July 2022.

One such startup example is Dream11, a fantasy sports platform founded in 2008. The company is developed to let customers play fantasy sports such as hockey, cricket, football, and many more. It has raised over $400 million and became the first Indian fantasy sports platform to enter the unicorn list in 2019.

India as a business destination for all

India has an open economy and hence provides many investment opportunities for FDI in many sectors. As per United Nations Conference on Trade and Development (UNCTAD), India scaled up to the 7th position for Foreign Direct Investment (FDI) in the world. India has also jumped 14 places and landed in 63rd position on the World Bank’s Doing Business 2020 study. 

The ease of doing business in India and its advantages for SME

For many years, India is considered one of the most profitable destinations for testing business. Factors like digital advancements, adapting to remote working, and the high availability of a skilled and educated workforce have encouraged various business enthusiasts to establish their businesses in India. A few examples of such companies are Procter & Gamble (P&G), Sony Corporation, Nike, CITI Group, Amazon, Uber, Unilever, and Google. The ease of doing business in India can be best understood by the success story of Google Pay. 

Google Pay, was initially designed as a Google wallet. It was launched in India as Tez app in September 2017 and later rebranded to Google Pay in August 2018. Within a year from its debut, Google Pay was being used by more than 22 million people and businesses every month and recorded transitions worth over $30  Billion. 

Sundar Pichai, the CEO of Google, said that the debut of Google Pay in the Indian market has been instrumental in understanding how to revamp its digital payment model globally. As of 2021, using the India model, Google Pay was launched in 42 countries worldwide. In addition, with the rising number of online payments and UPI transactions, the Indian economy is known as one of the leading innovators in digital finance.

It is now clear, how India offers an attractive market for testing foreign businesses. So how can you establish your business in India? What are the different business models being used to expand your business in India? 

There are multiple options available for you. At the end of this blog, we have shared the evolution of business models and also an emerging business model, International PEO/EOR.

Remote hiring, a new way of conducting business in India

Now, well into the pandemic, employees were able to set a precise workflow by using online portals and tools like Zoom meetings. Companies in India have also gotten accustomed to remote hiring and onboarding. If this interests you then please, refer to our blog Building remote teams in India. It will give you a comprehensive overview of everything you need to know about hiring remote employees in India. 

Evolution of business models in India

For many years, the conventional way of expanding your business in India was by either directly set up an entity or through outsourcing. These were the ideal options many foreign companies used for doing business in India.

For instance, International Business Machines (IBM) company, re-entered India in 1987. Since then, it has expanded its operations by setting up offices in different cities and states of India. Uber is another notable example that expanded its business operations in India. It entered India in 2013 and has been constantly growing in the ride-sharing space. It has now become one of the most valuable startups in the world.

Recently, India has witnessed tremendous change and transition in ways of conducting business. It has now evolved from franchising, e-commerce, outsourcing, subsidiary formation, and freelancing options to newer models such as International PEO services or EOR and remote hiring. 

From our experience at Remunance, we can see that most of the startups and SMEs are making the best use of these new models to build their remote teams in India. SMEs from more than 16 countries have taken this quick and cost-effective path to build remote teams of various sizes ranging from anywhere between 4 to 50 employees. These new business models will definitely change the way business is conducted by tapping into the Indian workforce. 

How an International PEO/EOR works?

Professional Employer Organization in India or EOR in India provides services to foreign companies who wish to establish their business in India. These services are a better alternative to outsourcing. This is because PEO/EOR handles all the legalities and compliance issues that are usually faced while outsourcing.

To know more about how PEO services are a better option for entering the Indian market, refer to our blog PEO..better alternative to outsourcing

International PEO/EOR is by far the best option for any small and medium business who wishes to test the Indian market. The PEO/EOR company will be the legal employer in India, for foreign companies and take care of all the HR services including employee recruitment and training, employee benefits, and payroll. 

How Remunance helps in expanding your business in India

Every business is different and therefore needs tailor-made business strategies to align with your goals. Remunance’s PEO/EOR services, will do exactly the same and provide you with a unique basket of services that suit your business needs!

Remunance understands the Indian market and its trends. With our technologically advanced and transparent solutions, we can help you get started in no time!

Remunance will provide you with comprehensive solutions and streamline your entire journey of establishing your remote team in India. 

Remote working is the way to function post-pandemic. But how did it begin in the first place?

Working with remote teams is not a new concept. It has evolved over the years through various business models. It is a tried and tested working model which has proved to be helpful for companies planning to expand their operations in foreign countries.

For instance, if we look at the evolution of business models used to expand businesses, outsourcing and freelancing have used remote working to a great extent. The majority of the IT, telecommunication, and marketing industries have used this model to expand their businesses globally.

India for instance saw a major boom in IT and other services due to outsourcing and subsidiary formation. India’s open-door economy has welcomed many foreign companies to establish their business in India. In addition, the industries and services in India easily adapted to remote working during COVID-19 pandemic. To get a clear understanding of how India’s business sector has evolved over years and how it has become a top destination for global business expansion, refer to our blog The best route for global business expansion in India.

Remote working and its benefits

In remote work, anyone with the right talent, skill set, and qualifications can find a job without any geographical barriers. The misconception that only technological, non-core processes, and IT-based industries can function remotely has completely changed. The COVID-19 pandemic has boosted the confidence of many SMEs to function remotely. Now, various functions in industries like healthcare, pharmaceuticals, accounting, media, and even legal services are carried out smoothly through remote working.

There was a time when working remotely was considered difficult, as technology didn’t exist. The emergence of cloud computing, video conferencing, and advanced communication technologies have made it easy to work in a dynamic and productive remote environment!

Remote working inspires employees to look beyond their local work territories, and explore work options worldwide with high international wages. Building remote teams with employees who wish for flexibility, varied experience, and higher growth works best for small and medium-sized enterprises that wish to test their business internationally. 

Remote team building is exactly what an EOR can help you achieve. An Employer Of Record services will be your legal employer and build a remote team for your business and will look after all the HR-related responsibilities to simplify the business expansion journey of a company. 

Let us understand how the ever-evolving business model of remote working has helped various services and business functions worldwide. This will give a clear view of numerous business options to choose from, to function and excel in today’s remote business world!

Expansion of business services through remote team building 

1. Healthcare

The traditional doctor-patient relationship has thrived and is now building through telecommunication, digital media, and other health technology. Digitization gave rise to connected health, also referred to as technology-enabled care that helps you access quality care and consultation. 

The number of patients preferring television has increased by 50% since 2020. In addition, the defense and military services have incorporated telecommunication and telemedication in their training. They have also made impressive use of these remote services for the treatment of injuries on battlefields and on inaccessible grounds. 

2. IT and ITES service

IT and ITES services have been spearheading the remote working model for decades. In fact, many companies have excelled during the COVID-19 pandemic by building remote teams and wish to adhere to it even during normalcy. For instance, in India, 90% of IT employees and approximately 70-80% of BPO firms, e-commerce, and SMEs have shifted to permanent work from home and acknowledged the success of remote work.  

Many IT leaders and CEOs decided to adopt cloud technologies and cloud-delivered applications such as software as a service (SaaS). 

To make business status tracking, team communication, and interactions easy, and to avoid any challenges during remote working, numerous new software and applications were developed by ITES. 

As with the right set of tools, everything can be simplified in remote working. These are a few examples that can simplify working with remote teams globally.1.Google DriveIt is an easy-to-use cloud-based solution that ensures the safe sharing and storage of documents. Files can be edited and documented collaboratively and the remote teams receive real-time updates and edits.2. HelloSignIt’s an e-signature platform on which up to 20 people can sign and get the document in their files. The entire document can be customized as per the brand’s identity3.UserlaneIt is an easy-to-use software, which helps companies guide employees regarding the usage of any software. It is very useful in creating a step-by-step segmented guide that gives a walkthrough entire software process

Human resources

Human resources as a business function is growing rapidly in the teleworking switch today. Finding the right employees remotely despite the geographical barriers and retaining employees virtually is at times challenging for human resources professionals. HR services or HR teams have opportunities for improving internal communications rather than just providing employees with company information. Increasing the use of collaborative tools and cloud-based HR software helps in smooth business continuity in any organization. 

In addition, the deployment of advanced software such as Applicant tracking system (ATS), payroll system, and leave and attendance tracking systems ensure precise and effective payroll solutions. Adoption of in-built surveys and employee engagement tools also provide room for improvement and growth and help employees stay content within the company virtually. 

4. Entertainment, media, and animation

The entertainment, media, animation, and content development services have changed the way we perceive, produce, and portray content. Heavy investments in virtual reality, animation, and special effects, and bolstering streaming services such as Disney Hotstar, Netflix, and Amazon Prime have transformed the media landscape. Digital media revenue has increased by 31% in 2020 and will continue to rise throughout 2022.

The constant need for advanced augmented reality games, for an enhanced at-home gaming experience, has provided innovative business expansion opportunities for various remote working teams such as video designers. For example, in 2020, games created for Facebook’s Oculus Quest and Quest 2, accounted for 1 million dollars, with just the headsets bringing in over a billion dollars.

5. Education

Coursera, an e-learning platform, recorded the registration of 20 million new students in 2021. Regionally, Africa witnessed up to 50% growth in online course enrollment and a growth of 48% in terms of student registrations. 

Remote team building in education services has been instrumental in educating school officials, teachers, and parents regarding student learning and social care during the pandemic. In fact, the majority of the remote solutions curated for imparting education and training online are free universally and cater to multiple languages.

6. Engineering design and drafting

As the book by Stephen Bayley and Terence Conran rightly says, “Design is intelligence made visible”. Nothing concrete can be built without a detailed outline or design. 

Remote designing services have proved to be extremely important for accessing qualitative work in shorter timespans. The large, interdisciplinary, and advanced Systems-of-Systems (SoS) can be developed due to the evolving Model-Based Systems Engineering (MBSE) approach. 

In fact, such an approach has helped in the emergence of remote engineering design teams. These teams comprising skilled and talented professionals, help you develop designs for any of engineering focus. These include mechanical, civil, architectural, aerospace, nuclear, and many more.

7. Accounting and financial services

Over the past decade, banking and financial services have embraced digitization, improved customer experience, and hence streamlined banking services even during the new normal. The development of UPI and other payment gateways (GooglePay, Paypal) has increased the adaptability of digital payment into various sectors such as retail, e-commerce, wellness, insurance, and saving schemes. 

In these services, almost all the accounting functions can be carried out remotely. Be it taxing, auditing, bookkeeping, budgeting, forecasting, or even maintaining investor relationships, everything can be carried out through a remote model of working. In addition, there are opportunities to develop remote working systems in areas such as Financial Planning and Analysis (FP&A) which at times require in-person collaboration. With proper training for banking officials and advanced data protection strategies, financial services can definitely thrive and succeed through remote working.

8. Digital Marketing

Modern marketing techniques have blurred the lines between branding and PR and have developed data-driven marketing strategies. For any SME who wants to expand their business internationally, digital marketing becomes the voice of the company. It helps connect to customers globally through social media platforms such as LinkedIn, Instagram, and emails. 

As the world moves into the digital era, it has predominantly followed the mobile-first approach. Hence, it is important to develop mobile-friendly marketing material that incorporates multimedia like videos, photos, and so on. Many companies are heavily investing in these digital remote digital workforces to develop top-notch digital marketing strategies. 

9. Data Analytics

Various industries around the world are embracing big data and data analytics due to its operational gain and high efficiency. With the help of advanced computing tools such as Microsoft excel, python, and SQL, data analysts function to convert raw data into conclusive and meaningful insights. These insights provide light on the business problems and deduce a statistical solution. With the growth of various industries, the importance of data generation, sharing and storage has increased over the decades.

In data analytics, from scrutinizing raw data to analyzing and interpreting it, everything can be done on a computer remotely. As per the Jobs of tomorrow report 2020, data analytics and Artificial intelligence have shown the highest growth rate of up to 41% per year. 

With the growth of the new era of remote and location-independent working, big data analysis, virtual team building, and the development of advanced computing techniques, we can definitely see that remote data analytics functioning is here to stay and will always be in demand!

10. Back office support workforce

The back office workforce is an integral part of many end-use industries such as telecommunication, retail, and e-commerce, across the globe. It involves non-core business functions such as data entry, IT support, content creation and moderation, and query management, which is an overview focus on enhancing customer experience. Various companies outsource these functions to focus on expanding their business. 

This is how BPOs (Business Process Outsourcing) emerged in the market and have helped various business sectors attain scalability while promising highly efficient and reproducible results. Accenture, Wipro, and Tata Consultancy Services (TCS) are a few renowned names that provide diverse BPO services worldwide. ADP is another well-known name that handles HR and payroll management for varied companies across the world. When we talk about countries, India is now a popular digital hub that has grown its BPO-IT industry over the past ten years. 

Remunance has been successful in providing end-to-end HR solutions to SMEs from various services. Here are a few instances of how we helped companies set their foot in India. 

CLICK HERE

If interested to know more about what Remunance can do for you or for your business expansion in India. 

India, a land of rich cultural and lifestyle diversity, has marked its presence as a growing economic superpower. About 20 years ago, India transitioned from a socialist state to a liberal marketplace. Today, India stands as the 6th biggest economy globally with a GDP of over $2.6 trillion. 

India has a vast talent pool. A recent report of an assessment of 65,000 graduates states that 40% of India’s youth is job-ready. India offers extraordinary and digitally skilled talent at effectively affordable labor costs. 

Expanding Business to India

India leads an attractive business destination for global brands owing to its optimistic spending behavior, business-friendly policies, and rich talent pool that can be hired at affordable resource costs. When a business aims at expanding in India, it focuses on establishing an overseas territory and growing its strength to service clients. 

Overseas businesses usually promote remote teams and virtual working environments. This is to facilitate their need for infrastructure as no bar. Hiring talent is one part but retaining that resource remains a challenge. 

Also, for any company from across the globe willing to set up an operation in India, it is essential to research and navigate local labor laws to steer clear of employment risks. Keeping track of these changes requires you to incorporate finance, HR, and payroll specialists into your team.

Wouldn’t it be easier if you could get away from this nightmare of adhering to complex Indian statutory tax and labor law compliances? Hiring employees in a new country is lengthy, complicated, and expensive. You have to establish a local entity or a subsidiary, and deal with currency conversions and overseas banking. These tasks are tedious and take time away from productive work. 

To avoid this hassle,  PEO (Professional Employment Organization) and EOR (Employer of Record) concepts were introduced in the early 1970s. For companies operating in a foreign land, PEO became a useful way of outsourcing particular HR functions and reducing costs. Whereas, for businesses looking at hiring talent in other countries without forming a legal entity, EOR became the right fit. 

The early version of PEO services: US-based model

In the US domestic model, the early version of the ‘co-employment’ model got recognized by the legislature. It gained popularity as a way of cooperating in the administration of employment contracts between the employing company, an administrative company, and the employee. On a formal basis in law, the PEO agencies began offering more comprehensive services than employee leasing. 

The DIY (do-it-yourself) approach of incorporating, registering, and running a local payroll was worthwhile for companies looking at commitment to a country.  But for those willing to enter new markets in other countries, leveraging international PEO/ EOR became an ideal alternative. 

The modern structure of International PEO/ EOR services 

What is International PEO/EOR?

The international PEO (Professional Employment Organization) Or EOR (Employer of Record) services equip an international business by providing human resources services, including international hiring and employment. It is a business-to-business arrangement between the company and the service provider. The latter handles the defined aspects of the employees on behalf of the company. The service provider is a registered employer of your remote team. You can manage the employee’s day-to-day work and execution responsibilities, and decide who you want to hire.

How does an International PEO/EOR work?

International PEO/EOR service providers have their own legal, registered entities in foreign countries. They employ your staff, provide agreed infrastructure, and make them available to you for exceptional work. International PEO/EOR service providers then manage their monthly payroll, taxation, insurance, HR admin, and related compliance with local laws on your behalf.

This arrangement gives you access to foreign markets where you can build your remote team and onboard local talent. The service provider becomes the best advisor for laws regarding local contracts, worker protections, notice periods, termination rules, and severance pay. 

Why use an International PEO/EOR?

Since International PEO/EOR service providers are the legal employers for your team, it eliminates your administrative efforts. You get freedom from handling staffing responsibilities and keeping up with foreign compliance and tax laws. Their services and experience offer superior risk mitigation without forming a business entity abroad. 

Competitive advantages 

Increased employee retention: A PEO helps you offer your employees attractive benefit plans. This boosts the employee retention rate.

Experienced management team: You get access to experienced professionals in HR, benefits, payroll, taxation, and other employee management functions. 

Better control: You get better control over employment-related regulatory compliance and employee-related disciplinary issues. 

Increased access to employee life-cycle: You can provide effective management and access employees online with a self-service portal. This eases the monitoring of employee records, pay sheets, leave tracking, tax deductions, and full tracking of employees wherever required. 

For growth-minded companies, international expansion is not an end goal but a start to a challenging new venture. There are many considerations for your business on the eve of international expansion. Companies expanding to India find it relatively easy to form collaborative partnerships with local EOR service providers. How exactly does an international PEO support your business throughout this exciting transition?

Start your business journey in India with EOR

To address these pain points, they were in search of a local service provider and decided to partner with Remunance for EOR services. Remunance created a formal business plan that addressed relevant business, employment, and tax laws. This in itself made for a smoother and more cost-effective operational process.

Most companies fundamentally choose this option of engaging with a local partner who can employ individuals on their infrastructure. It also has a great potential for reward as they do not have to manage HR, benefits, and payroll. However, for businesses moving internationally, costs and risks are involved. Let us understand how setting up a subsidiary becomes a seamless journey when you partner with the right PEO. 

As one of the oldest providers of employer of record (EOR) services in India, Remunance has the resource depth, knowledge base, and network to help you. For over 15 years, we have helped clients from North America, Europe, and Asia with 360-degree support services. 

Remunance has earned credibility by providing on-the-ground support necessary to thrive In India. As EOR, Remunance helps hire best-fit employees, onboard them smoothly, keeps a check on compliance, and manages their performance and payments. But above all, they focus majorly on improving talent retention. For companies that have a remote team, freelancers, or contractors working for them, Remunance provides customized services and a self-serve platform that helps you take control over the IT, infrastructure, and logistics support. 

CONNECT WITH OUR EXPERTS 

Remunance helps you explore the option that best suits your needs: 

Though most companies prefer our EOR services, Remunance also extends support in the incorporation of offices for businesses that wish to form subsidiaries in India. Let us have a glance at why a selected few businesses chose to extend their business operations in India:

Waltham, a USA-based RTOS-Platform company IntervalZero was seeking developers for Windows-based RTOS. They were on the lookout for a reliable and experienced employer of record to make it the right attempt. After screening through outsourcing partners, joint ventures, vendor consultants, and other types of alliances, they found Remunance.

After the initial discussion with their CTO Brian, Remunance took charge and planned a strategy to locate resources with potential, and trained them as per the job requirement to make them productive. As we built a core team, the operations achieved every milestone that was set out. 

For two long years, Remunance handled legal compliance, benefits, payroll, and other HR functions of IntervalZero. With the seamless functioning and credibility added to their brand identity, Jeff (CEO) took a decisive step to form a subsidiary in India using Remunance services. To help them establish a business presence in India, Remunance set up a unique separate office infrastructure. Finally, we smoothly transitioned the core functions to the IntervalZero team. 

To learn more about subsidiary formation, check our latest blog.  

Working at your own pace and at leisure is something that every employee prefers. Day-to-day functions are easier and the companies receive greater output from their employees. 

Hence, even after the COVID-19 pandemic, the hybrid working arrangement is yet on every company’s agenda. Many companies became good hybrid work model examples by replacing traditional working models. 

This blog will take you through the evolution of the hybrid work model and the benefits it offers. We will also provide an overview of how Employer of Record services or International PEO services can help your business grow using this hybrid work model.

What is a hybrid work model?

A hybrid work model is a combination of remote working and in-office work adopted by the employees. Every company has its own hybrid model based on its needs. Occasionally the employees have the freedom to design their in-office and work-from-home schedule. The typical nine-to-five working hours along with the long commute associated with it was no longer the routine for the majority of the employees. There is no set structure and no ‘one-size-fits-all’ when it comes to hybrid working. 

Emergence of hybrid work model

The COVID-19 pandemic resulted in a huge shift in the way of working globally.  Remote working was the best choice for many companies to keep their business going. 

While adopting the newer technologies and working remotely, employees kept looking for flexibility and for a better work-life balance. Companies noticed high productivity when employees entered the remote working and work from anywhere trend. 

It showed improved efficiency and enhanced employee satisfaction at the same time. Various businesses understood the benefits of remote working and started inculcating them in their in-office working model. Hence, a hybrid work model can offer various growth opportunities for small and medium-sized enterprises to flourish in India.

Limitations to hybrid working

When we look at the bigger picture, transitioning frequently between in-office and remote mode can cause many discrepancies in the work environment. Every employee has their own work schedule divided into office and remote mode. Such erratic work schedules can affect the overall effectiveness and productivity of a particular team in a long run. 

In addition, employers have to keep their IT infrastructure updated. A lot of remote and hybrid functions depend on high-tech apps and require constant upgradation. 

As per a recent survey conducted by the company TeamLease, over 58% of organizations will move back to complete in-office working mode by the end of the year 2022. After analyzing this switch, it is understood that humans need a social infrastructure and a certain work ambiance to function efficiently. These conditions are fulfilled in an office setup rather than a housework setup. 

Current scenario of hybrid working in India

In spite of a few setbacks, 73% of services and companies in India, still plan to adopt a hybrid work model as per the 2022 India Office Occupier Survey. It is needless to say that the hybrid work model is here to stay. 

Below we throw light on many obvious benefits to hybrid work models, for the employees and the employer as well. 

Benefits of hybrid work model

Increased productivity

The old age outlook that ‘seating in the chair’ in an office, indicates productivity is no longer followed. Hybrid working and remote working has removed the physical monitoring of work and boiled it down to results, deliverables, and time management using various software tools.

Increased employee satisfaction and work well being

The hybrid work model has helped employees maintain a work-life balance.  The hybrid work model offers flexibility due to which employees can freely focus on learning, growth, and self-development at work and in their personal life.

Skilled workforce at reduced costs

With no geographical barriers, there is greater availability of a skilled workforce for employers in hybrid working environments. Companies can hire talented individuals at reduced costs. Hiring a larger workforce is anytime favorable than asking employees to relocate to a new location.

Reduced cost of infrastructure

This is particularly a perk for employers. With lesser or no employees in the office due to hybrid work model, it reduces the overhead costs associated with logistics and infrastructure. 

Building hybrid working teams the Remunance way

We at Remunance, understand that business is different and at times requires additional services for successful business expansion in India. One such service can be providing support to remote teams in India to work in a hybrid model.

Remunance can set up an office in India and help employees to function in a hybrid work model. You can definitely reach out to us and gather a better understanding of the range of services that we offer.

The era of globalization has encouraged organizations to explore fierce global competition. The international expansion helps businesses tap into new customer segments and culturally diverse workforce. It also gives access to a new market, capital source, and advanced technology infrastructure.

While global expansion is an attractive and lucrative proposition, it can be challenging as the learning curve is usually steep. In a perfect world, hiring international remote workers without worrying about compliance and payroll across borders looks easy. But in reality, the complexities of international law make it difficult for businesses to hire workers abroad.

When you look at hiring globally and building a remote workforce, you need to work with a local partner, such as an employer of record or professional employer organization. Service providers use the terms PEOs and EORs interchangeably. It is important to know the difference between the two when you have to decide which option is best for you and your company. 

Let us help you decode the difference between the functions based on the services provided:

What is an EOR?

An Employer of Record is a service provider that manages HR, tax, legal and local compliance responsibilities of employees in countries where you lack a local entity. It also accelerates overseas operations in an affordable way than forming entities in the countries you want to hire from.

How does it work?

When you partner with them, it becomes an agreement where they act as the legal employer while you retain the role of managing employer. An EOR service provider onboards, manages and pays a contractor or the employee whether it is for a six-month assignment or a permanent position. It also supports the staff to make them operational and productive as you would not have a presence in that country.

Benefits of using this model

For instance, when you need to hire a team in India – you provide them with information about who, where, and the remuneration details. The EOR navigates the local laws and handles all the paperwork for onboarding the employees. This eliminates your cost, time, and distraction from bureaucracy.

What is a PEO?

A Professional Employment Organization facilitates and manages the responsibilities of onboarding and managing both full-time employees and independent contractors. This model requires you to own a local entity in the target country. 

How does it work?

When you collaborate with this model, you enter into a contractual arrangement to share the employer’s responsibilities and liabilities. This legally ensures that the partner will facilitate your HR requirements as a co-employer. 

Benefits of using this model

Businesses that do own legal entities in their target countries don’t always have the resources to meet all their employees’ needs. They handle a variety of HR functions to ensure employees can receive their paychecks and access benefits, like health care and paid time off. They can come in handy for employee onboarding, employee reviews, and contract termination, and sometimes offer valuable suggestions that will help you make informed decisions about global HR management.

What is an International PEO?

In the United States, co-employment between a service provider and its client is a common practice.  But when it comes to availing similar services in countries where you do not have a legal entity, the term International PEO is used. In this case, it’s not a co-employment as you do not have an entity in that country. 

It manages monthly payroll, taxation, insurance, HR admin and related compliance with local and international laws on your behalf.

When you target expanding to India, Remunance qualifies as the best service provider as it has its own legal, registered entity in India. We would define Remunance as a one-stop for EOR and International PEO as it also offers the services to build your entity in India and make you successful in India whenever you find it fit.

The concept of working remotely changed a plethora of industries. It is intriguing to find out that healthcare industries have embraced this transition to remote working. It took a very short time for everyone to adjust to the virtual patient-doctor consultation. 

Different services of the healthcare industry such as pharmaceutical and clinical research, telemarketing, and technological advancements have been working on their strategies and growing their business by building remote teams.

This blog primarily focuses on the healthcare sector and its business services. It explains how these business services thrived through the COVID-19 pandemic and helped the healthcare domain in today’s world. 

Healthcare industry and its switch to a remote working model

The COVID-19 pandemic forced a shift to remote working. Caregivers and healthcare professionals avoided in-person meetings.  In fact, many business functions involved in the healthcare industry shifted to remote functioning and are still working on the same grounds. 

The business services working remotely included research, data management, medical sales, insurance, healthcare IT support and software application management. This ensured business continuity and employee productivity going forward. 

Majority of the healthcare professionals adapted to digital healthcare for coping with the severe second wave of COVID-19 in 2021. As per Future health Index 2021, 75% of respondents from the 200 participants, reported virtual and remote healthcare as their top priority.

The report also suggested that 94% of respondents, plan to make an investment in AI technologies and incorporate it in daily operations, diagnostics, and data analysis. 

Changing scenarios in the healthcare sector

Virtual meetings, software for communication, and various databases for medical data management helped reduce in-office to and fro and saved time to address various healthcare issues. 

Apps for appointment booking and scheduling meetings, and the emergence of numerous advanced software and databases have kept the continuum of work in a remote environment. So much so that telemedicine, which involves consultation through video calls has been incorporated into the insurance and medical plans by various companies. 

Such a technological boom tilted the scales to working remotely in the case of many healthcare business services. Government bodies across the world are also supporting this technological growth. For instance, in August 2022, Prime Minister of India Narendra Modi announced that the launch of Made in India 5G services will revolutionize contactless and remote healthcare services in India. In addition, it will reduce hospital visits and will help provide healthcare services in rural areas.

But it still has not replaced the skill, craftsmanship, and expertise of a doctor for performing surgeries and for conducting physical x-rays and tests. 

How does working remotely help in research and development?

With healthcare technology and software touching new avenues, it has had a drastic effect on clinical and drug development research and simplified contactless services globally.

Pharmacovigilance and post-marketing analysis got a new face due to extensive data acquisition from the local areas and even overseas. This exponential growth of drug discovery and remote data analysis pushes the pendulum towards the “remote first” business model in the healthcare industry.

This has also made finding talent with the right skill set easier than ever. You could hire employees from anywhere in the world and build remote teams for your business.

How does Remunance help build remote teams for your business?

When we look at the current scenario, in the post covid era,  the trend of remote working has inculcated deeply in a majority of healthcare functions.  This working model also motivates healthcare professionals to provide services overseas and outside local areas. SMEs keep this in mind during the recruitment process. Hence, understanding the ways of working remotely is very important globally.

It is also important to tap the right market and hire employees with the right skills and craft. India, with its diverse and abundant resources, can provide one of the best locations for executing your services remotely. With its skilled, educated, and English speaking population, India becomes an efficient road map for business needs. 

To simplify your journey in the remote healthcare domain, you can definitely consider partnering with International PEO services or an EOR. With experience of working with 65 plus clients, Remunance can help in soft landing your business in the Indian market. Interested to know more about our services,

CLICK HERE

References:

Remote working has become a trend of the decade and it is an excellent way for businesses to grow. This transition of various industries and services to remote working was relatively easy and continues to be. This can be attributed to numerous factors such as increasing connectivity and communication, flexibility, and lastly, the technological boom!

With no language barriers and connectivity overseas, any service startup or SME can adapt to a remote working model for business expansion. To get started with working in remote teams and dealing with all the compliance-related processes, an employer of record is anytime the best choice! 

Let us understand how various architectural and engineering industries have adapted to remote working. We will also give a snippet on how an employer of record (EOR) or an International PEO company can be your key to business expansion.

A look at the established industry in the remote world

When we think of engineering or architectural services, we imagine a typical 9 to 5 desk job working on their theme and basic designs. But these services are no longer staying put and have become location independent. Employees are travelling, exploring, and connecting with different cultures and destinations and working remotely on their designs and themes. This allows designers, architects, and engineers to come up with innovative ideas in line with the location they are required for. 

The remote system of selecting talent over the location and choosing co-creation over competition along with focusing on quality and flexibility rather than just productivity of employees is something that will stay for long globally. 

Can architects work remotely?

How can something requiring physical monitoring, switch to remote working? This is a question that arises when we think of architects. There is always more to their work than just directing workers on the model sites.

Architects in the remote world visualize their models and design them without being actually at the site. Innovation and collaboration are at their peak while working remotely. Construction prototypes are also designed from the scratch in the comfort of their homes or studios.

The rise of remote engineering design services

The preconceived notion that only IT services can achieve high productivity in the remote setup has changed. Engineering services such as data mining and analysis, product designing, and development, reverse engineering, and other computer-aided engineering technologies have marshalled ahead and made drastic progress in the remote setup. 

Major engineering consulting and services giants such as TCE, Emerson, ZS consultants went head straight with the remote working model and have shown drastic growth. Now, well into the COVID-19 pandemic, these major players are still working remotely in India and many other locations.

Basically, the day-to-day functions of engineers have remained the same while working remotely. The way the functions are delivered and the monitoring of productivity and quality is different. Booming apps and tools have connected the dots and helped in the smooth sailing of engineering design services. 

For instance, Google workspace has made collaboration and sharing of tools easier than ever. With its functions like sharing folder and documents, communication feature through messaging, and creation of meeting invites, engineers have found a way to work in collaboration from any part of the world! 

Another tool that is used alot by engineers is Jira. It is an efficient software for working remotely, especially for tracking the workflow of various services and products and for project management.

How are structural designing services adapted to working remotely?

For designers specifically, remote work has been a great way not only to maintain their sanity but also their productivity levels during stressful times like the COVID-19 pandemic. It provided flexibility for completing their projects on time while still giving them space and clarity.

Though it looks challenging for employees from the construction sector to adapt to remote working, the structural engineers have made it work! Virtual site visits through online meetings were a big change. In addition to this, tools such as Facetime, Slack, Facetime, and Whatsapp have helped keep clients, contractors, and designers in the loop regarding project updates. Sketches, designs, and patterns to be shared globally were unimaginable a decade back, which is now a norm in the majority of companies. 

An Employer Of Record for your business journey

Looking at the benefits and flexibility of working remotely, it is likely to become a favourable business expansion model for most SMEs.  

You might already have an action plan in mind. If not, you might want to take a look at India as a destination for your business expansion.

With favourable FDI policies, and a large pool of talented individuals with a strong technological background, India ticks all the boxes and is best suited for building remote teams. 

We at Remunance, help you establish your business in India by using a remote working business model. As an employer of record, we handle recruitment, payroll, and other HR services for your business. With our experience with diverse clients, we curate the best unique services for you. 

CONTACT US TO KNOW MORE

References:

1. Google workspace

The Covid-19 pandemic gave a new definition to working remotely altogether. Overnight, software developers and IT engineers around the world came to the forefront to ensure business continuity plans (BCP). The only hope organizations had was in the wizards of their companies to continue their business operations. Mostly every company has its own dedicated IT team to rely on in times of such emergencies but using collaboration tools and platforms lays the foundation for generating smooth virtual communication amongst remote teams.

Through this blog, we aim to communicate the relevance of using collaboration tools and platforms to achieve productivity, employee engagement, and information security amongst remote teams.

What are the collaboration tools for remote teams?

Collaboration tools are types of software used to ensure smooth interaction among employees to complete tasks and projects conveniently. Collaboration platforms, on the other hand, allow sharing of files, projects, and documents online. These collaboration platforms can include instant messaging, video conferencing, document management systems, task management, and cloud storage. Collaboration tools and platforms save time, effort, and costs while managing remote teams. Without these collaboration platforms; the work allotment, coordination, and deliverables would go for a toss.

Gathering an understanding of the four important categories of tools namely, communication, collaboration, administration, and security is important in narrowing down the I.T. infrastructure that has to be set up for remote teams. 

Video conferencing and communication tools

When it comes to communication, the latest method of communication is video conferencing. The tools such as Google Meet, Zoom, and Microsoft Teams are the most preferred tools used by companies.

Google meet has popularly grown in the last few months as it is very convenient to jump onto a google meet through a uniquely generated URL via a Gmail account. Google meet enhances communication through its features like a whiteboard and comments section. The other preferred video conferencing tool is Microsoft Teams. Anybody with a corporate or consumer email address can sign up for Microsoft Teams 365 commercial subscription and have free access to the same.

Zoom has an exciting feature of viewing a gallery version of all the joined members. Zoom has over 90k on Google play and 300k reviews on the App store showcasing its popularity among other tools.

Data and document creation

The Google Suite consisting of Docs and sheets on Google drive is a great collaborative platform for working in sync and storing data. With 15 GB of free cloud storage, customizable sharing settings, control access to shared files, and an option for working on spreadsheets offline. The drive is great for storing documents. IT professionals always recommend saving data on Google drive instead of laptops’ C, D, and E drives.

Zoho is great for keeping a track of data. It allows merging documents via form submissions in personalized template formats, conditional merging, and sending out interview letters, payslips, and signature collections.

Monitoring and maintenance tools

Because collaboration tools and online collaboration platforms are used for remote teams, it becomes imperative for companies and organizations to monitor their remote employees. Monitoring tools are a great way to keep track of the employee’s work completion, and time spent completing assigned tasks. Some tools offer features like time tracking, attendance, employee locations, movements, and progress reports. Time management sheets, activity logs, and timesheets can be used to monitor work done by employees on certain tasks for the day.

Since the working remotely model is of a risk management nature, some companies prefer monitoring the operations for security reasons. To check the credentials of the employees, it is ideal for conducting a two-step verification by generating login detail verification through a mobile-generated code. The multi-factor verification authenticator code is a great way to maintain confidentiality. Zoho is a great web-based business tool to store employees’ personal data and professional data.

The other upside of using monitoring tools is that it helps you track the productivity of the employees. Interesting research suggested most employees showcased certain durations of the day as their most productive hours.

Administrative and security tools

The dynamics of evaluating every employee’s work changed the paradigm of managers’ evaluation processes as well post-2020. They could no longer monitor the employees’ desk time by keeping an eye on them in the office but had to rely on tools to get an understanding of it virtually.

With remote monitoring technological advancements, you can view employees’ active and idle time spent on websites as well. Some tools can also click pictures of employees when they are seated in front of their laptop screens. Some tools can also help in generating accurate bills for the meetings conducted with clients. It records the accurate time a representative spends with a client as well.

However, in order to respect the privacy of the employees, it is best to inform them they are under surveillance to avoidance of legal issues. This is considered a good management practice. A June study by Gartner suggests that 26% of HRs used monitoring tools to track their employees after the coronavirus hit in 2020. Hubstaff, ActivTrak, and Teramind are known to offer technologies to monitor employees.

How Remunance can ease your process of working remotely?

Remunance is recognized as the Indian leader in providing International PEO and EOR services.

As an International PEO in India, we have a dedicated team of IT professionals who ease your journey of interacting with your remote employees by suggesting the best collaboration tools and online platforms. Our team of HR professionals ensures employee engagement is enhanced with the use of video conferencing tools, google meets, regularly conducted webinars, and updated social media pages.

If you wish to explore the Indian market and expand your market reach as an SME or start-up company.

CLICK HERE TO GET IN TOUCH WITH US

Reference link:

Covid-19 pandemic gave everyone a taste of what work-from-home truly feels like. It took the stress off the plate of many employees and employers around the world. The remote working model has been practiced in the past by many companies even if it got popularized by the pandemic. IBM, the multinational technology company was one of the first top major corporations to experiment with the remote working model. Gradually it led to other companies embracing it with time and hiring remote teams keeping cost perspective in mind.

Remote teams help small and medium-sized businesses to attract top talent, and hiring a large remote team is way more affordable as compared to on-location employees. As well as widening the access to a larger pool of talent and reducing overhead costs.

In this article, we aim to take SME decision-makers through an understanding of the benefits of having remote teams.

Understanding remote teams and remote working

Remote working introduced employees to the concept of working from anywhere whereas to employers, the benefits of having remote teams. 

Remote working benefits employees as it subtracts traveling hours and offers them a good work-life balance. Whereas, remote teams present employers around the world with the opportunity to have access to a larger pool of skilled talent. One that surpasses the restrictions of limiting their search to local locations only. They can leverage the advantage of expanding their search to other countries and hire remote employees affordably as compared to their on-location employees. Globally, CEOs are adopting remote hiring because it gives them access to a larger pool of talent, ensures employee retention, and lowers overhead costs.

What are the benefits of having remote teams?

Mercer’s 2022 Global Talent trends study shows that 74% of the employees would join an organization if offered remote working or hybrid opportunities. Mostly, remote working offers flexibility to employees. The practice of remote working has stemmed in the past but has relatively gained popularity after the Covid-19 pandemic forced people to work from within four walls. This situation made them realize they could contribute more by working from home.

Considering these statistics, remote teams give companies access to international talent, reduce operational costs, employee retention, and a competitive edge in the market.

Remote teams attracting top talent

Indians stepping in the forefront for securing C-level positions gives global clients the opportunity to recognize the talent stemming from India.

Indians are highly skilled in the domains of IT, digital marketing, big data analytics, software development, etc. India houses about 75% of digital talent around the world. All you need to do is rightly source these skilled professionals. By sourcing talent from India, you will have the opportunity to hire highly educated and talented professionals remotely.

Remote teams give access to an explicit talent pool

Remote hiring presents you with an opportunity to look for a wider pool of keen talent outside your local market, city, and country. The literacy rate of India is 77.7% as of 2022, it has 612 medical colleges and 23 Indian Institute of Technology (IITs) of National importance. It is said, that by 2030, India will have 20 universities that will make it to the top 200 universities in the world and climb the ladder to the top 5 countries for research output.

However, considering India’s population, the unemployment rate was 7.12% in May 2022 as per The Centre for Monitoring Indian Economy report. Also, the availability of jobs in Indian companies is not proportional to the number of engineers graduating every year. So in such scenarios employees in India are always on the lookout for job opportunities outside or remotely. Employees prefer remote work compared to work-from-office, which in turn means you have a wider horizon to narrow down on. Here, they won’t only bring in their skill and expertise, but a deep-rooted desire to contribute to your company brand. Remote work can turn revolutionary for such potential employees.

The employees in India are immensely skilled in domains of shared services like payroll, finance, HR, and Information Technology. As a European-based SME or businessperson, you can tap into the Indian market to access a more affordable labor force and avail the language skills, educational qualifications, and cultural diversities of the employees in India to benefits.

Remote work enables you to hire a large team

Hubstaff, Buffer, and Workfrom surveys suggest that 9 out of 10 employees would like to choose remote working throughout their career.

It is way more convenient to hire a larger team and manage a remote team from a cost perspective as compared to a local team onshore. The average salary of a software developer in India is lesser than compared in Western cities. Similarly, a larger team can be hired keeping in mind the same affordability quotient. 

When a large team is presented with the same comfort level, their contribution will always be unanimous. After all, a common goal and good head space go a long way in achieving a company’s goal. Also, conducting remote team-building activities like conducting virtual company events, encouraging employee recognition, and team bonding sessions will help in employee retention.

Remote teams lower overhead costs

Organizations can cut down costs fixed or variable overhead costs like of investing or renting out large office spaces. The utilities, other office supplies, and equipment costs also get minimized. The cost of an office space per employee is $18000 per year when multiplied by the number of employees working for your company will generate a tentative estimate for the overall headcount expense. According to a report published by Global Workplace Analytics, companies can save as good as $11000 per employee per year if they allow their workforce to work 50% remotely. Flexjob saved $5 million through remote working whereas IBM reduced $50 million in real estate costs. 

By hiring remotely, you can move your team to a cloud-based operation completely. You may rather invest in upgraded tools, project collaboration software, document storage, and cloud services. Also better VPN configurations, firewalls, antivirus software, and cybersecurity tools. Having remote teams will turn out to be more economical than operating local teams.

Salary differences also play a major role in cost savings. For example, a US developer is paid three times more than $109000 annually whereas the developers in India are paid $38000.

How an Employer of Record services/ International PEO can help in finding remote teams?

You can have your own remote team in India without forming an entity. An EOR (Employer of Record)/International PEO is aware of the global clients’ need for a good remote team and helps you expand your global presence in India without establishing an Indian office. They conduct in-depth research about the fluctuating market scenarios and hand-pick talent accordingly. An International Professional Employer Organization will nurture your remote team with the best-suited employees. Simply transfer all the employee-related responsibilities like HR management, local compliance, and payroll onto the on-paper employer of your company- an EOR.

Benefits of having remote teams the Remunance way

We, at Remunance, have conducted in-depth research for years to understand what you need as a global business leader. As an Employer of Record/International PEO, we ensure your company is backed up with a skilled remote team. Our team of skilled HR professionals spares no effort in hand-picking the right talent from the corners of the country to groom your remote team. We support teams in every possible way by extending our employee-like IT, logistical, and infrastructure support. That is the Remunance way of helping you manage your remote teams.

To know more about how we can iron out the wrinkles in your remote hiring process,

Remote working introduced employees to the concept of being productive even from the comforts of their homes. Where Covid 19 pandemic forced organizations to resort to it, to ensure business continuity, it offered employees added benefits like flexibility. Thanks to the new business model, employees didn’t have to fight with traffic signal lights anymore. There were no more in-person longish official meetings or brushing of shoulders in competitive environments as well.

Undoubtedly, the biggest challenge faced by employees in India is the time spent traveling to work. The workforce in India spends 7% of their day traveling on average. In extreme cases, they may travel for two hours or more to offices. And if they pick up a job in a city like Banglore or Mumbai which is infamous for its chock-a-block traffic, that’s a different ball game together. Their other concern is the availability of jobs in Indian companies. As the number of engineers graduating every year is way larger compared to the job vacancies available in companies. So in such scenarios employees in India are always on the lookout for job opportunities either remotely or outside of their country. When these plights are addressed, they don’t only bring in their skill and expertise, but a deep-rooted desire to contribute to your company brand.

Taking advantage of this successful way of working, companies who want to hire talent from places where the company does not have an office have taken advantage of this work method. Globally EOR has made this route available to many foreign companies. An International PEO/ EOR(Employer of Record) understands that a good remote team serves as the foundation for your business expansion plans to India. Keeping this in mind, an EOR sources the right talent which will extend your company’s brand value to another country as well. Simultaneously ensuring the employee is given an ideal platform to contribute to.

Through this read, we aim to run you through the benefits of remote working for employees. Let’s read on to understand how remote working helps employees boost their productivity, improves employee retention, and offers an excellent work-life balance.

What is remote working?

In the past, most people traveled to their jobs. These days people like to take their jobs with them wherever they travel. Remote working has become synonymous with working from home or working from anywhere. Basically, remote working would require an employee to work from anywhere in the world except traditional offices or corporate buildings. These workstations can include any coworking, private or shared spaces, or even the comforts of their home.

Remote working has become the mainstream dream of many employees around the world, especially after the Covid-19 pandemic. Employees would willingly sign up for anything outside their traditional working environments, as far as they’re backed up with a great network, technology, and most importantly the flexibility to work from anywhere and be able to collaborate with their teams virtually.

What are the benefits of remote collaboration?

Remote work improves retention 

When employees feel valued or appreciated in an organization, they are likely to refrain from absenteeism. Monday blues or midweek blues will become a thing of the past. Employees won’t force themselves to get out of their beds, but rather find a stimulus to work. Not subjecting them to micro-management gives them an environment to nurture and perform better. Ultimately, the work location flexibility offered to employees will result in reduced employee turnover and improved retention.

According to a report published by Buffer, 99% of employees would opt for remote working for the rest of their professional tenures if given the opportunity. Allowing employees to work remotely will make them stay willingly in your company for longer.

Remote work boosts productivity

A survey conducted by the propriety tool happyness.me showcased that 59% of corporates and people from India do not enjoy working in their office spaces. The study suggests on organizations prioritize the employees’ happiness quotient in order to thrive.

Prolonged in-person meetings or daily commuting drains the energy levels of employees. Constantly adhering to lunch break timelines, hopping on to untimely and unscheduled client calls, staying in the office after work obligated to complete a task or to shoot an email. When all these obligations are subtracted from their lives, it gives them more room for better productivity. Remote work offers employees flexibility and this works largely in their favor to deliver better.

Good work-life balance

The world is growing competitive with every passing day. In order to stick into the rat race, every employee is expected to meet their deliverables by going above and beyond expectations. This leads to piling up their work stress and a desire for a better work-life balance. Remote hiring simply takes all the irrelevant stress and promotes a good work-life balance. Every employee especially in an Indian set up wishes to spend quality time with their family after work hours. So remote working provides them with an opportunity to have a personal life after work.

Remunance’s way of engaging with remote working

There is a section of employees who see more benefits in working from the office and they find remote working more bothersome. We, at Remunance, step in as the legal employer for your remote employees in India to strike a good balance. We undertake virtual employee engagement activities, and their employee-related responsibilities, like benefits, compliances, and taxes are checked. We provide complete HR and office infrastructure to the employees. We keep a tab on the changing HR policies and market trends and accordingly create a convenient environment for your remote employees.

To know more about our International PEO and EOR (Employer of Record services),

Finding “local high quality talent” is indeed a challenge in countries like the US, UK, most European countries and Australia. It is not affordable. Talented people are in demand in large businesses houses having deep pockets. These large businesses are also fishing for talent in the same talent. Result, higher salaries, high rate of job switching and reduced loyalty towards employers. This creates a perfect environment for an unstable workforce, something that SMEs cannot sustain.

How can small business owners and SMEs overcome this challenge? 

By thinking out of the box. Looking for high quality talent outside your local area or even overseas. In eastern countries where English is their second language. Countries like India, Nepal, Pakistan, Sri Lanka, Bangladesh, Bhutan, Vietnam, Philippines, and Singapore are all multicultural countries that conduct business in English. Their workforce is largely graduates from colleges and universities where English is the second language.

Amongst all these nations, India has the largest pool of high quality talent and is the undisputed leader. India has come of age after 2014, post the Narendra Modi led BJP (Bharatiya Janata Party) government came to power. Here is what the Indian prime minister’s website says about India’s recent achievements – https://www.pmindia.gov.in/en/governance-track-record/

With such massive transformational initiatives underway there is no doubt that India has become the “go to” place for hiring talent as well as a lucrative 1.3Billion strong market. Several G20 countries like the US, the UK, Australia and countries from the European Union have started flocking to India to access its market and source high-quality talent. 

This is evident from the fact that many countries including Australia and the UK have decided to increase their trade with India and have signed bilateral free trade agreements. Google launched their digital wallet platform and online payment system G-Pay in India first before rolling it out to the rest of the world.

The billionaire investor Vinod Khosla once said, “Educational competition in India and societal chaos helps hone their (Indian tech professional’s) skills in addition to the rigorous technical education.” 

According to Wikipedia in 2020, India has over 1000 universities, with a break up of 54 central universities, 416 state universities, 125 deemed universities, 361 private universities and 159 Institutes of National Importance which include AIIMS, IIMs, IIITs, IISERs, IITs and NITs among others. 

Some of the world’s premier business houses are relocating their significant business operations to India including manufacturing plants like Apple Inc. These business units are not just coders but they undertake deep sophisticated work in the field of data science, strategy development, sophisticated design, state-of-the-art software development in the field of AI, Deep & Machine learning, IoT, AR, VR, Drones and research in several other cutting edge sectors.

Wouldn’t you want to tap into this amazing opportunity? 

There was a time when this was really difficult because of complex regulations and inefficiencies in the Indian legal systems. This has all changed. Indian states are making rapid changes. There is a healthy competition to attract business investments. As a result, India has jumped 79 positions from 142nd (2014) to 63rd (2019) in the Ease of Doing Business ranking since Honorable prime minister Shri Narendra Modi has took over. 

According to sources in the MF and the UN, India’s economy has become the one of the largest in the world with a GDP of $2.94 trillion, overtaking the UK and France in 2019 to take the fifth spot. India’s GDP (PPP) is $10.51 trillion, exceeding that of Japan and Germany. Now India is on aiming to become a $25 trillion economy before this government goes to poll again in 2027.

How is Remunance poised to offer you a strategic advantage?

Remunance is uniquely positioned to harness this opportunity for you. Remunance is an Indian business modeled on the basis of US PEO companies and PEO service providers (professional employer organization) and the European EOR (Employer of Record) companies, making it really easy for foreign firms to hire high quality Indian talent.

Pioneering the way forward in India 

Remunance is pioneering the way forward in India to create a brand new PEO industry. Never before was this even thinkable, leave aside actually having a functional remote team running within 3 weeks without having a legal business entity in India. Up until few years ago businesses used to “outsource” projects to Indian IT companies which spawned huge growth in the IT sector during the 80s and 90s. India became a world leader in IT service. Now Indian companies are building their own platforms and products. India has recently hit a century of unicorns and growing. During the pandemic the Indian workforce has become a lot savvy in working with foreign firms. Now they routinely work as part of global team.

Remunance makes it very easy for you

Remunance experienced HR professionals advertise the position, curate the applications received and present you with a few hand picked high-quality resumes that fit your selection criteria. Remunance’s experienced HR admin team coordinates interviews with you, across time zones. You interview and select the candidates, shortlist the winning candidate and Remunance does the rest including negotiating the salary as per your budget, issue appointment letters, background check, fix the joining date and manage their on-boarding. Couple of weeks later, you have a productive staff member onboard ready to work on your projects. Easy?

The COVID-19 pandemic disrupted a great many businesses worldwide. The pandemic tested the resilience of companies to doing business under uncertain conditions. There was confusion followed by chaos as California was the first state in the US to lockdown. Economic activity seemed to be coming to a grinding halt. Businesses had to rapidly learn new ways of conducting business as their employees were forced to stay home. Physical teams started transforming rapidly into virtual teams. It took a while but gradually remote work and work from home became mainstream.

In this blog, we aim to address concerns about arriving at the know-how of hiring a remote team. How an Employer of Record services, i.e EOR services in India or an International PEO can contribute to finding the right fit with relevant experiences at competitive rates. 

Our blog will educate you on exploring India as a prospective location for skilled resources, the risks, advantages, costs, and strategies for hiring and retaining a remote team in India. As well as how Professional Employer Organizations, i.e PEO services in India can outrun and serve as the best alternative compared to the other routes of remote hiring.

The remote working trend becomes mainstream

As it became evident to businesses that high-caliber workers were easily available in other countries like India for a fraction of the cost, it kick-started a race to hire overseas employees. There emerged an opportunity for certain types of businesses using cloud and telecom technologies to leverage remote workforce and gain a strategic advantage in their marketplaces.

The pandemic had indeed leveled the playing field for workers to provide their service to businesses out of their native country. The wave of remote working started by platforms like Upwork, Fiverr, Freelancer, Brickworks, and the likes got expedited by the pandemic.

The pandemic has encouraged successful remote teams’ work culture

The post-pandemic revolutionized the concept of work and business ecosystem altogether.

Interestingly, the Netherlands has decided to prioritize its employees’ work-life balance. They are just a step away from becoming the first country to provide work-from-home legally if the law is approved by the Senate. The pandemic was instrumental in playing a huge role in implementing remote hiring and increasing staff productivity.

India as a preferred destination for skilled manpower

India is perceived as a land of opportunity for its cultural, well-educated, and diverse background. India has a talent pool of highly educated and skilled professionals who are adept at problem-solving abilities and are immensely creative. People from India hail from different regions and bring various cultures and thought processes to the table. As per Quora, 4.4 million employees from India were employed in the IT and ITES sectors as of 2020.

Diving into the specifics of India, India holds the second-largest English-speaking manpower. It churns out a great tech talent of 1.5 million engineers yearly from various tier 1 and tier 2 engineering premier institutes like the Indian Institutes of Technology (IIT) and National Institutes of Information Technology (NIT). According to the report published by the National Survey of India, the literacy rate of India as of 2022 is 77.7 %. India ranks 159 amongst 197 countries.

The cost of living in India on average is 64.6% lower than that of the US. The country’s average population is young. Moreover, it is quite easy to find staff who are eager to succeed and adapt to new business ethos. The salary packages are lower which means businesses in the west can have a larger workforce for the same budget.

India has over 75% of the World’s CMM-Level 5 companies and has the highest number of ISO-9000 certified companies. Whether you are offshoring to India or hiring Indian talents, high standards, professionalism, and reliability are a given. The Indian IT sector today is estimated to be $235 billion.

Companies emphasizing virtual team building

The journey of global companies exploring remote hiring dates back to global airlines like Texas Instruments and British Airways availing their back-end offices in India. IT/ITES companies followed the lead realizing India has great communication, technological and high-end telecom facilities. It has favorable business working environments as well. From 1945-1994, companies like International Business Machines (IBM), American Express, and American Telephone and Telegraph Company (AT&T) permitted their employees to telecommute. Considering the telecommuting study conducted by the United States Federal Government reduced the employees’ commuting expenses and increased their productivity.

Today a lot of global software giants like Oracle, Microsoft, SAP, etc outsource to India by acknowledging its potential. India has a strong industrial base, growing infrastructure, and digitization. As well as an enthusiastic start-up population, encouraging growth, and partnering vision from the Government. In fact, 8% of India’s total Gross Domestic Product (GDP) is accounted for in the IT/ITES industry in 2020. The software industry of India has given out an output of $16 billion. The leading IT companies of India are well equipped with attractively designed buildings and posh campuses in prime locations.

The influx of global companies during the pandemic

There was a surge of companies coming to India. India benefited hugely from the pandemic. It’s one of the biggest countries in the world with a fast-growing economy, so it wasn’t a surprise why it became the top destination for hiring a remote team.

To get some context, the Indian Ministry of Corporate Affairs (MCA) registered more than 124,000 companies in 2019-20, 155,000 in 2020-21 (25% growth), and 167,000 (8% growth) companies registered in the financial year 2021-22.

During FY 2021-22, the states that registered the largest number of companies were Maharashtra with 31,107 companies, followed by Uttar Pradesh at 16,969, Delhi at 16,323, Karnataka at 13,403, and Tamil Nadu at 11,020 companies.

Advantages of hiring a remote team and leading remotely

Broadens brand reach in two countries

By narrowing down on India as a prospective location for your global business expansion plans, you will have an opportunity to augment your brand visibility and culture in dual countries.

Remote hiring allows you to tap into a pool of diverse and adept population

India is a place of robust diversity. Skilled professionals stem from different regions, have an ingrained ability to adjust, and are adept at problem-solving skills. The authors of ‘Jugaad Innovation’ advise the West to consider Indians as an emerging market offering creative solutions in the business world.

Avail skilled resources at reduced costs

When you hire a remote team, it works out great from a cost perspective point of view. The wage rates and compensation policies in India are different, to be precise they are comparatively low. There is scope for negotiation in India. Also, the costs of recruiting are affordable. You can resource remote employees in India at an affordable budget in comparison to your on-location or in-house employees.

Leverage the variation of job vacancies in India and time zones

The number of engineers graduating every year is way more than the job vacancies available in Indian companies. You can leverage the difference in this situation. You can profit from the difference in the time zones. You can make use of your remote team after the closure of business hours (COB) in your country. With this, you will be able to avail of the clock customer service and enhance business productivity.

Disadvantages of remote hiring

Easy distraction and experiencing isolation

When employees work from home, they can get easily distracted. Their attention span may be compromised. In extreme cases, some employees may even feel isolated and can sink into depression as constant monitoring by superiors can be disturbing.

Asynchronous communication can be inconvenient sometimes

The difference in time zones and geographical barriers can prove as a hindrance in managing a remote team. The scheduling of meetings and follow-ups may be inconvenient keeping in mind the availability of employees, managers, HRs, and employers. You will lose direct control and will have to coordinate with your employees virtually. Meetings will have to be scheduled considering the availability factors.

Decoding the employee mindset of India

While hiring resources from India, it is imperative to understand their work culture. The employees in India like to have 10-15% hikes on an annual basis. They prefer favorable taxations, travel allowances, health insurance coverages, incentives, etc. They prefer a decent number of public holidays. They like working in modern offices and futuristic office spaces.

Staying digitally connected comes with an expense

Ensuring team coordination and collaboration may be worrisome. You may face security issues and also incur technological costs to ensure a smooth virtual business operation.

Put in extra efforts

This means ensuring your employees feel welcomed into your company irrespective of the geographical barriers and differences in time zones. Most importantly, you will have to put in efforts to understand their behavioral approaches and adjust to their culture accordingly.

To gather a better understanding of hiring employees in India and how we, at Remunance, ease your journey, visit hiring employees in India: a guide for foreign companies.

How can you find new employees remotely?

There are different methods of hiring employees remotely. You can source the right talent through online job portals like Naukri and Indeed. 

You can also use LinkedIn as a social media platform to find activities as well as passive talent. Linkedin has 62 million users from India making it the second-largest market for networking platforms. According to Linkedin data, employees in India research mechanical and software engineering job roles the most on social media networking sites. University campus placements or approaching recruitment agencies is also a great way of resourcing talent.

However, the approach an International PEO or Employer of Record services will offer will take off all the stress from your plate.

How do you ensure remote team building in India?

Every job seeker desires for Google-style work environment where the tech giant ensures employee happiness as a top priority. While you may practically not be able to create an adult playground kind of work environment for your employees but you can surely imbibe their organizational values for leading remotely.

Implementing employee-centric best HR practices and a good HR strategy play a major role in meeting business productivity and execution. The sooner you dawn on the realization that employees are the biggest asset of your company, the faster you will be able to climb the ladder of success.

Keeping an open-door policy

Emphasizing creating a happy workplace culture

Encouraging innovation and new ideas

To know more about Best HR practices, visit our blog Best HR practices for business growth.

What are the costs of hiring a remote team?

Depending on the way you decide to hire or the business model you choose to adopt, you will have different costs associated with hiring remote workers. E.g. if you are going to set up your legal entity or hire a contractor directly by using a professional recruitment consultant to find employees then their fees can range from 10% to 18% of the employee’s gross salary. There may be additional costs like conducting a background check etc. If you have hired contractors directly then you will need to pay them salaries directly into their bank accounts. Banks will charge you a fixed transaction fee per transfer.

If you use Remunance then we will charge you a fixed monthly fee per employee. You make one single payment and we will disburse the salary to each employee. You will receive a bill for their bank accounts. Each bank account will have a SWIFT code with a clearly stated purpose for the remittance. This will make it very easy to track and audit the payments made to each remote employee. Remunance doesn’t charge you any finder’s fee.

Hidden costs of remote teams

Remote workers pose a greater security threat

The solution is not to avoid the risk, but to mitigate it. It is very necessary that you invest in VPNs. Your corporate network should be protected and private. Remote team members should be able to log in remotely and access the required tools without putting the business network at risk.

Remote workers are more susceptible to phishing and more likely to use insecure devices

If remote team members use unsecured devices then they make the business network vulnerable. If they’re using the same device for their personal use and company use then they are putting your company network at risk. It is best practice to use devices exclusively for work while using separate and unconnected devices for personal use.

It is equally important to train and retrain your employees on security best practices.

Different models to hire talent in India

Remote teams can be formed through routes like outsourcing, freelancing, contracting, and subsidiary formation. You can choose your route depending on your needs, the time you desire to continue business operations in India, and the control you would like to have.

If you are looking for a long-term relationship with talented remote resources, then an International PEO or EOR may just be the ideal option for you. An International PEO will offer their expertise in handling the HR department. This includes loading off administrative responsibilities like HR management, payroll, and tax filing onto them. EOR services will step in as the legal employer for your employees. The ideal takeaway for your small and midsized business (SMB) employees is that a PEO will offer them the same benefits a larger company would do.

These are the different routes of remote hiring in India:

Partnering with an International PEO/EOR services 

An International PEO works out great when you are on the lookout for a better remote team selection, work allocation, deliverables, and cost. An International PEO will ensure a business continuity plan, a dedicated team in a full-time role, negligible upfront investments, and the opportunity to have an entity at an opportune time. A PEO model will assure complete protection of your projects, by adhering to all your company’s confidentiality clauses and in a leak-proof secured infrastructure. A PEO International charges either straight costs or percentage costs. They will charge you per employee per month or take a percentage of the employee’s gross salary costs.

Click here if you would like to explore the benefits of using Remunance as your India EOR.

2. Outsourcing model

Outsourcing has forever been a favorite and popular buzzword for global companies seeking international talent, especially in the IT industry. Once you have defined the project’s scope, you need not monitor their deliverables as long as they are in line with your business expectations. 

However, in an outsourcing route for hiring a remote team, you do not have direct control over your resources. This will be the lookout for their parent organization. It is difficult to find the right resources within a stipulated time. You may lose your peace of mind when it comes to confidentiality in an outsourcing setup. Your resources will work for you for a finite period of time and on a particular project. You may have to shell out more money from your pockets if you would like to retain them for a full-time dedicated project. You may have to pay additionally for the added effort they put in other than their designated tasks. Such situations will be out of your control.

3. Hiring and engaging contractors directly

In a contracting model of remote working, the resources will work for you in a short-term or long-term project. The biggest drawback with contracting is you will have little control in maximizing throughput in human resources. Contractors can legally work for other clients or multiple companies simultaneously. In such a scenario, their attention span and deliverables will perhaps be compromised. They may work for your rival companies as well.

From a cost perspective in a long run, maintaining a team of contractors will turn out to be an expensive affair. They will charge on an hourly basis, and if there’s additional scope of work loaded onto them, they will incur additional costs for the same too.

This is relatively easy for the business when the number of international contractors or remote workers is small, less than 10. It gets complex, cumbersome, and expensive quite quickly the moment you have more than 10 remote (international) contractors. It is not easy for remote (international) contractors who have to face multiple challenges like local tech support, and filing complex end-of-year tax and GST returns.

The working culture and mindset of contractors are like near-autonomy. They like working independently and won’t go the extra mile to meet your business expectations.

4. PEO versus subsidiary formation

Setting up your entity in India is the most traditional and the most obvious method known to most business professionals. It gives you full control and autonomy to (say) run the payroll, pay taxes and stay compliant with the local laws. However, this pathway is very time-consuming and also expensive. It needs a fair amount of country expertise in the local legal, corporate, and payroll regulations. This method is usually used by larger businesses that have the resources to manage the extra workload. We do not recommend this to SMEs and small businesses that have got no immediate plans to hire a large number of employees.

To understand why to choose an International PEO before you form a legal entity in India, read our blog PEO vs legal entity. 

And to gather an even more comprehensive understanding of the process of subsidiary formation, simply read this blog.

Build remote teams the Remunance way…

At Remunance, we understand a remote team acts as the backbone in managing your global business. We also comprehend the importance of building and retaining skilled resources. By becoming your ally, we provide complete HR admin and office infrastructure support. We aim to inculcate a winning team culture through our ideal selection process conducted by our efficient team of HR professionals. We understand the Indian pulse, are aware of the changing trends in the market and HR policies, and share your employee responsibilities by finding the right fit accordingly.

Our EOR/International PEO services will handle your employee taxation, salary processing, and employee benefits. We have a well-equipped self-servicing employee portal. Our Founder, Mr. Rajendra Vaidya has devised an innovative PEO model to offer you the best of both worlds. Remunance has successfully served 70 plus clients from 16 countries to date.

To know more about our International PEO and EOR services, get in touch with us here to nurture a collaborative business relationship.

Reference links for credit sources

PEO industry in India

The Professional Employer Organization industry, better known in the west as the ‘PEO industry’ is still in the stage of infancy in India. It is an industry born out of the need to service overseas businesses in the west, primarily in the US.

Remunance is a pioneer and a leader in India specializing in offering PEO service to overseas businesses from Aug 2020. Till date it has more than 50 clients from 7+ countries.

Rajendra, the founder of Remunance, spent significant time researching PEOs in the US. He then carved out a business model that works for India. His team did extensive research to ensure PEO business is compliant and offers strategic geo advantages to overseas businesses.

Taking advantage of India’s surplus talent pool

Indian tech professionals have made a mark on the world stage, leading iconic organizations like Google, Facebook and Twitter to name just a few.

Curating high-caliber talent for you

The number of high caliber Indian professionals is growing at a faster rate since 2014 after the Hon Shri Narendra Modi led BJP (Bharatiya Janata Party) has come to power. It has introduced huge reforms since then. This is evident from the fact that India’s position has gone up 79 positions from 142nd (in 2014) to 63rd (in 2019) in the ‘World Bank’s Ease of Doing Business Ranking 2020.

Recognizing this, Remunance established an in-house team of recruitment specialists. We source professionals from 7+ channels including tier-1 universities. Also, from portals like Naukri.com and Indeed.com to source high-caliber talent for you.

Get hassle-free remote teams 

With this innovative service made available by Remunance, there’s no need for you to form your own legal entity in India. This means, your legal compliance perils are gone! 

When you use Remunance’s PEO service, you get a remote team but Remunance becomes the “legal employer” for all your employees based in India. Remunance is responsible for everything except project execution and management. 

Remunance, your one-stop full-service PEO service firm

Remunance provides end-to-end HR service to your staff members. These include: 

1) sourcing talent 

2) onboarding new staff members, 3) transferring employees from your other entities to Remunance,

4) setting up their bank accounts, 5) conducting timely and accurate payroll, 6) calculating employee’s taxes, 7) taking out their insurance and, 8) administering benefits. You don’t have to do any of that, You simply need to work with them on your projects.

Huge ROI from Remunance’s PEO service 

Remuance’s PEO service has an immediate impact on your business as it;

lowers your operating costs

increases your efficiency, and

increases your productivity as it enables you to hire more staff for the same salary budget.

This is a cost-effective alternative to using freelancers because your staff has a fixed salary. Their compensation does not depend on scope of work.

Compliance is not your responsibility any longer

Remunance undertakes all HR admin tasks. This includes tasks like making accurate salary deductions, paying government taxes and all the related paperwork before, during and after employment. This gives you the freedom and the peace of mind to have high-performance, motivated remote teams.

Retain your employees longer 

Remunance is an experienced best-practice employer who knows what it takes employees to stay loyal to businesses. Our remuneration structure, benefits and processes are aligned to ensure staff stays motivated and focused on delivery. This creates superior working relationships and happy employees.

Remunance, your success partner