By outsourcing, the organization would do away with the need for employing staff and reserving infrastructure specifically for Payroll & HR management. The reduced investment in these assets would free up resources for utilization in the organization's core areas. Also, the organization saves the extra cost required from time-to-time for updating the Payroll & HR systems with any ad-hoc reports for management, taxation updates, and any other additional fields and information.

The Outsourcing Partner would have a strong network of experts with specific domain knowledge. The expertise, skills, and technologies would be available to the organization at no additional cost. These would include Tax consultants with knowledge on TDS-related matters for salaried employees, Labour Law Consultants conversant with statutory regulations, and Software Programmers expert at designing and implementing organization-specific policies, special reports, and TDS amendments as per the Finance Bill.

The organization is free from the Payroll and HR procedures so that they can concentrate on their core business activities without sacrificing quality or service in these back-office areas.

The organization would not have to spend on the one-time software acquisition costs and the recurring annual AMC costs. The Software would be a zero maintenance benefit. Maintaining the server and implementing policies for security and back-ups would be the responsibility of the Outsourcing Partner.

Outsourcing offers flexibility to bring in additional resources by the Outsourcing Partner on increased demand by the organization and by the same principal to release them when not required. The organization can tap into the Outsourcing Partner's developed capacity, processes, and systems without having to be anxious on quality and costs.

Adhering to the intricacies and finer point generally result in higher costs of complying with the various aspects of Payroll and HR. Outsourcing these activities would provide a consistency and at a reasonable cost.

In case of employee turnover within the organization's HR Department, there would be uncertainty and inconsistency in the process. The Outsourcing Partner would provide stability to the operations and reduce the risk of poor implementation.

The Organization can benefit from the Outsourcing Partner's association by gaining market insights in Payroll & HR and also acquiring new ideas and thoughts in these domains.