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EOR- a reliable strategy to build remote teams in uncertain times

The ongoing cross-border war has ignited historical, political, and religious tensions, culminating in an extensive issue that carries the potential of crumbling down the global economy. As this inter-regional war serves as the epicenter of this turmoil, its repercussions have surged across nations and several other regions, including the Middle East, the United States, and European countries. The coming days may witness a sharp escalation in the prices of precious commodities such as crude oil and gold, weakening the dollar value and leading to inflation, thus worsening the economic woes. 

Amidst the prevailing geopolitical turbulence, small and medium-sized enterprises (SMEs) find themselves adversely impacted. The persistent conflict between the two nations, coupled with intermittent eruptions of violence, compels investors to scrutinize the potential risks meticulously before engaging in business endeavors. When it comes to SMEs, their confidence becomes skeptical, particularly those operating within the disrupted region. They confront the challenges arising from market volatility and restricted operations, resulting in lost opportunities with potential clients.

Major impacts faced by SMEs during unsettling times 

Growing Debt and Financial Losses: Small and medium-sized enterprises (SMEs) find themselves grappling with a plethora of fiscal hurdles amidst the cross-border conflict. Prominently, there’s a disruptive impact on their operations, decreased consumer expenditure, rising inflation and price hikes, physical damage, and infrastructure destruction, as well as constrained access to credit from financial institutions, thereby affecting the vital capital required for business expansion and

operations. Simultaneously, there are other pressing concerns such as the loss of customers and market share to state one issue. Consecutively, currency devaluation affects profitability and competitiveness. Moreover, escalating government taxes and levies are earmarked for war funding, further pressing on the financial crunch. Also, the erosion of intellectual property compromises competitive advantage, further affecting the business.

Additionally, insurance premiums are surging, leading to higher coverage costs. As the conflict’s duration and intensity continue to escalate, the magnitude of these financial losses will inevitably spring up, contingent on the myriad factors sketched above.

Reduced Growth and Expansion: Amid the ongoing conflict, economic instability looms large as the foremost concern for small and medium-sized enterprises (SMEs). Trade limitations and dwindling business investments are already gnawing at the profit margins of these enterprises, intensifying their financial woes. Furthermore, the foreign direct investment (FDI) landscape is wrecked by a worrisome decline owing to the perceived risks associated with these uncertain times. In this war-ridden environment, resources and attention are automatically diverted away from crucial domains such as research and development, innovation, and long-term strategic planning. This unfortunate shift hinders the ability of businesses to broaden their horizons and maintain competitiveness in the business market. According to the United Nations Development Program (UNDP), SMEs operating in conflict-ridden zones face a disheartening statistic, where only 14% of the companies can operate at their full capacity, let alone plan business expansion initiatives in comparison to large enterprises1. Hence, as the global economy struggles with its lowest phase, SMEs may find themselves compelled to shelve their expansion aspirations until the situation regains stability.

Loss of Human Capital: In conflict-afflicted areas, employee well-being has deteriorated, leading to lower productivity and increased absenteeism. The lack of educational opportunities is depriving youth of necessary training, causing a significant skills drain. Employee disruption is at an all-time high, making it difficult to retain experienced staff or attract new talent.

Regulatory and Compliance Changes: Recent government actions in response to the cross-border conflict, aimed at addressing a range of social and economic issues, such as heightened security protocols and adjustments in labor and workforce regulations, pose as bottlenecks for businesses operating in the affected areas. Furthermore, governments are enforcing sector-specific mandates encompassing taxation modifications, data privacy regulations, and alterations in insurance policies. Data from the International Labor Organization (ILO) reveals that approximately 35% of SMEs with a physical presence in areas affected by conflict endure significant infrastructural and operational damage, often resulting in business closures and compelling the proprietors to permanently cease their operations2. According to the World Bank, governments in regions affected by conflict are poised to introduce additional regulations, thereby subjecting many of the SMEs to compliance challenges and hindrances in cross-border activities.

Long-Term Uncertainty: To state an example, the Israel-Palestine war, which commenced on October 7, 2023, has now persisted for nearly a month, causing growing anxiety within the business community, particularly among SMEs. The extended duration of the conflict is giving rise to an escalating array of crises, prominently involving financial, legal, and labor challenges. According to the World Economic Forum (WEF), these hostilities are fostering prolonged economic uncertainty, making it taxing for SMEs to formulate comprehensive, forward-looking investment strategies. These businesses are currently wrestling with the constant and unwavering challenges of procuring essential resources, predicting market dynamics, securing loans, and navigating the precarious terrain of currency fluctuations. Profits have plummeted to historic lows, with further declines anticipated if the war is extended. The Small Business Credit Survey, conducted by the Federal Reserve, underscores that 60% of SMEs affected by conflicts are compelled to incur additional debt to sustain their operations, leading to acute financial strain. In this turbulent climate, business owners are eagerly seeking innovative strategies to reposition their enterprises within the framework of this wartime environment.

The cope-up mechanism for SMEs 

While SMEs are struggling to keep up with this adversity, they find themselves at a crossroads in finding the right solution to it. Although any cross-border conflict is a much sensitive issue and is intertwined with intricate ethical, legal, and political implications, business owners can still seize a ray of hope amid the gloom. According to McKinsey & Company’s report, the market dynamics in conflict zones can undergo dramatic shifts, impacting the competitiveness and market share of 

SMEs4. To say the least, SMEs that adapt to the challenges can witness operational enhancements. For instance, a BCG survey reveals that 75% of SMEs that adeptly respond to changing circumstances become more resilient and innovative.

Notably, the affected territories comprise of vibrant tech ecosystems. SMEs in the conflict zones are renowned for their pioneering work in domains such as cybersecurity, artificial intelligence, medical technology, manufacturing, and food technology, among others. 

These industries heavily incorporate technology into their operations, aiming to establish influential enterprises and capture a significant market share. Amidst the ongoing regional tensions, prospects for collaboration, joint ventures, or the expansion of business conglomerates into international markets may emerge.

Significance of Employer of Record during a Conflict

In this tumultuous situation, the need for relocation of your business to a potential market surely increases. Nevertheless, relocating your entire operation to a new market without a firm grasp of local customs and regulations can backfire on your business. 

To avoid any potential complexities, smoothly establish a remote team, and facilitate swift international operations, integrating the concept of Employer of Record (EOR) into your business expansion strategy emerges as a strategic essential. Let’s delve into a comprehensive exploration of how EOR services can play a pivotal role in overcoming these uncertain times: 

Cost Management and Efficiency: With their expertise in budget planning for various organizations, an Employer of Record (EOR) not only reduces your expenses but also creates a sustainable financial strategy for your business, hence freeing you up from all sorts of financial debt. From managing recruitment and onboarding expenses to handling intricate insurance coverage and tax declarations, an Employer of Record is your comprehensive solution.

Employee engagement and support: EOR services have access to a vast talent pool and are committed to sourcing exceptionally skilled candidates from the local workforce, ensuring a seamless recruitment process. Additionally, they adeptly manage various employee-related concerns, such as payroll, employee benefits, onboarding, training, and implementing flexible work hours for an improved work-life balance. This exhaustive approach not only contributes to talent retention but also enhances overall employee productivity.

Compliance and risk management: Harness the EOR’s extensive expertise in local and international labor laws and regulations, encompassing workers’ compensation, professional liability, and various insurance facets, for efficiently mitigating compliance risks entwined with workforce management. Collaborate closely with the EOR to guarantee that employment contracts, policies, and procedures adhere rigorously to pertinent laws, thereby minimizing potential legal liabilities. Non-compliance to labor regulations is a critical issue, and mishandling it can lead your organization into dangerous legal waters.

Market Research and Competitive Analysis: When venturing into a new international market, leverage the EOR’s pre-existing infrastructure, assets, network, and resources to smoothly operate through local employment regulations and cultural nuances, all the while maintaining the agility to tailor your workforce strategy to the foreign terrain promptly. Collaborate closely with the Employer Of Record to acquire invaluable intelligence on labor market trends, competitive salary benchmarks, and talent availability, thereby securing your business’s competitive edge. An EOR is your trusted partner in adapting swiftly and effectively responding to shifts in customer demand and emerging market trends.

Remunance as your local guide 

Given India’s status as one of the world’s largest and most rapidly expanding consumer markets, the prospect of shifting your business there holds significant value. This strategic move not only grants you access to an expansive customer base marked by diverse needs and preferences but also aligns with India’s resilient and consistently growing economy. With its robust and diversified economic landscape, India ensures stability, a valuable asset, particularly in these times of global geopolitical tension.

Remarkably, a report by Hindustan Times reveals that more than 500 global organizations, with over 100,000 employees, currently established in the conflicted area are contemplating a shift to India due to the escalating cross-border conflict. The prime motive for this relocation is the synchronization of time zones with the affected region, a factor that streamlines business operations, coupled with India’s unmatched talent capabilities.  

In a business environment where the government is actively fostering foreign investment with incentives and initiatives, coupled with cost-effective labor, it’s the opportune moment to secure local expertise for a seamless transition of your business into India. This is precisely where Remunance will save your day.

As the premier “Employer of Choice” in India, with a track record of serving over 85 clients across 16 countries, Remunance stands out by successfully overseeing a workforce of 800+ Indian employees. Their dedicated, personalized support team efficiently handles all your HR needs, from top-tier talent acquisition to meticulous document management and streamlining legal compliance. All this is accomplished while ensuring transparency and cost-efficiency, making Remunance your ultimate solution.

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Expand business in India at low risk with International PEOs

Business expansion into a new market can be a rewarding journey and a decision that has a significant impact on various growth opportunities. But, from time to time, many businesses put their expansion plans on hold or reconsider their existing plans due to unforeseen circumstances. Mostly, their decision can be severely affected due to the new development of the country’s political and economic systems or the lack of understanding of the cultural aspects of that country. 

It becomes even more risky and challenging if you’ve recently started operations in a country and haven’t thought through the exit plan. So, you must consider two major factors—a safer location due to political and economic stability and a service model that can ensure easy entry and exit.  

Looking at the present scenario, India stands strong economically and politically. It means that the country is offering tremendous growth opportunities for global businesses due to its large talent reservoir and consumer size. If you’re looking for business expansion in a foreign country in a low-risk and low-cost manner, India can be the best choice for you. 

The blog explains how an international PEO helps reduce operational risks and grow your business with minimal investment during turbulent times. Partnering with an Indian PEO, you can quickly start your business operations at a low cost and handle risks effectively.

Why expand business to India?

India’s robust economy and political stability present a strong foundation for business expansion. The country has a large talent pool that allows you to build your remote team and take advantage of compelling opportunities for your business growth. In addition to getting access to tech-savvy professionals, building remote teams in India will lower your operational costs. As the world’s largest democracy, India’s political stability ensures a secure investment environment and boosts investor confidence. Furthermore, government 

initiatives and policies toward pro-business environments, ambitious infrastructure projects, tax reforms, and growing scope for ease of doing business foster an environment for stable business setup. 

With a sizeable consumer base, India has become a favorable destination for your business operations. The country’s economic growth due to rapid industry development, especially in sectors like services, IT, and manufacturing, makes India an attractive destination for foreign investments. Those are some key reasons that make India a promising location for overseas companies looking to tap into its dynamic market and increase their global presence.

How does international PEO help with low-risk business expansion in India?

International PEOs have in-depth knowledge of the local market and offer expertise in legal, administrative, and financial matters. With their support system, you can easily navigate the entry, hiring, and operation of your business. Also, it provides services that allow you to overcome various roadblocks, such as cultural differences, attrition issues, and engagement problems. 

Let’s explore how international PEO services can help you establish your team and ensure a smooth business operation in India with low risk and cost.    

International PEOs for low-risk business expansion

Low-risk market entry: By partnering with an international PEO, you can hire full-time professionals without establishing a legal entity in India. Your PEO partner in India is responsible for finding talented professionals for the required job position; accordingly, you can conduct interviews and shortlist those candidates who rightly fit the job. In this way, you can quickly build a robust team and make risk-free entry into the Indian market.

Minimal administrative hassles: International PEO services are solely responsible for handling the administrative activities of your employees in India. They take care of employee payroll, engagement, and benefits so that the employees remain engaged, motivated, and aligned with your company culture. 

Mitigating legal and compliance risks: Employment risks pose a significant threat to employing remote employees. The employment laws and regulations differ from one country to another. With an international PEO partner, you can mitigate the legal and compliance risks of business expansion in India. International PEOs have extensive knowledge of the complex system of Indian employment laws and regulations. They ensure that you and your Indian team remain compliant with Indian laws.

Market experimentation: A major advantage of partnering with an international PEO is that it allows market experimentation. Working with the PEO services, you can test the Indian market waters with minimal investment. You can easily assess how effectively you can handle challenges and examine whether your remote team is likely to succeed in forming an entity in India. 

Easy exit: Working with an international PEO is undeniably a low-risk strategy as it allows you to exit your business with zero complications. If you realize that your team isn’t going to succeed or that the target market isn’t suitable for your business, you can simply dissolve your team and exit. However, you have to wait until your employees complete their notice period. 

Conversion to a subsidiary: It will be a smooth transition and effective conversion of your existing team into a subsidiary if you already work with an international PEO. At some point, you may consider converting your Indian team into a company if you have a sizeable workforce and have acquired knowledge about how to handle roadblocks to your operations and expansions. 

International PEOs for low-cost business expansion

Local talent acquisition: International PEOs have resources, knowledge, and networks for finding the right local talents. They know the pulse of Indian professionals. Within a short time, you can hire the top Indian professionals for your job position at a reduced cost. Hiring an in-house team in your home country will cost you heavily, as compared to hiring Indian talent. 

No upfront investment: Working with an international PEO can be highly cost-effective as you are required to pay a fixed service fee per head monthly. If you can increase the size of the workforce gradually, the cost of PEO services will increase but will be relatively inexpensive as compared to other models. While working with an Indian PEO, you don’t need an upfront investment and can plan your workforce size according to your budget requirements. You can check out the cost of building remote teams in India before you actually start the planning. 

Flexible plan: You can opt for flexible plans and choose selected services as per your specific needs. International PEOs usually offer all-in-one solutions for smooth business expansion in India, such as payroll, human resources (HR) management, employee benefits, and office & IT infrastructure support. You can get customized services from Indian PEOs, which are mostly decided as per your expansion timeline and objectives.

Leverage your business expansion in India through Remunance 

As a leading Indian PEO service provider, Remunance showcases its expertise in providing end-to-end services for low-risk and cost-saving business expansion in India. Remunance provides add-on services such as recruitment and logistic support on top of its primary services such as payroll, HR support, employee benefits, and compliance assistance services. With Remunance, you can gain confidence in local operations in India as it serves as a bridge to connect your business to localized platforms. We help you decide the right time for your full-scale operation 

and ensure a smooth exit in case you want to dissolve your existing team. It means that by choosing Remunance, your path to business expansion in India is secured as you gain insights with precision and confidence. 

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What are the benefits of using EOR services for large companies?

Tapping into international markets remains a crucial aspect for large companies for various reasons—revenue growth, risk diversification, competitive advantage, and business scalability. Even small businesses can avail of similar opportunities when expanding their team abroad. However, there is a significant difference in the way a large company sees its concerns, challenges, and goals of business establishment in a foreign country.

One significant advantage of large companies is that they have deep pockets and can easily acquire a company in the target country to establish their presence in the market. Having a legal entity in a local market offers a competitive advantage as it allows you easy access to new customers and scales your business to new heights. 

Nevertheless, it’s not without challenges. Bridging the cultural gaps of cross-border work environments between the head office and your overseas employees is one of the key challenges. You need to mold a work culture that suits your company values and remote employees at the same time. For this process, a fair knowledge of local culture, especially the work culture of your employees, is required.  

In this blog, you’ll learn the benefits for large companies when using employer of record (EOR) services. In a nutshell, EOR services play a crucial role in the smooth formation of a subsidiary company by providing support systems as an interim caretaker for your employees.

Employer of record benefits for large companies

In general, it becomes easy for large companies to form subsidiary companies in a foreign country. However, the successful operation of a subsidiary depends on how well you address the complexities of forging an appropriate work environment for you and your overseas employees. This is where EOR services come into the picture. With EOR assistance, you can effectively address the underlying challenges. Let’s explore how EOR assists large companies in addressing challenges to ensure smooth operations for their subsidiary companies.

Understanding the local culture: Every country has a unique set of socio-cultural values, beliefs, and norms that are often integrated into the work practices of several organizations. Such values and norms are streamlined into the way an employee communicates and understands work life within an organization. Ignoring the importance of local culture and a lack of cultural sensitivity may result in clashes or an absence of common spirit within the team. For instance, India is a vast country with a diverse culture, language, and religion. The way Indians celebrate a festival differs from one state to another. You must consider both national holidays and state holidays when preparing a financial calendar for business operations in India.EORs have a comprehensive knowledge of local culture, and with their help, you can easily grasp the cultural nuances of the target country. You can navigate the intricacies of local culture by forging a work environment that aligns with your business culture and attracts your employees. In short, you can easily minimize the risks of cultural misunderstanding and misinterpretation within your team.

Robustly assessing work culture: Every organization has its own distinct work culture, values, and goals. Likewise, employees in an organization have unique work expectations, practices, and problem-solving approaches. You need to have a robust assessment of your employees’ work culture to fill the gaps and help create a cohesive work framework that aligns with your company’s work culture. By opting for EOR services, you can thoroughly assess the leadership style, communication practices, recognition and appreciation, employee engagements, employee benefits, and so on. For instance, when talking about employee benefits in India, employees usually prefer companies that provide medical benefits and health insurance extended to their parents.

Setting up employee policies and procedures: Preparing a new employee policy requires legal expertise with a good knowledge of local market regulations and subsidiary company formation. You need to have a fresh outlook on how to blend the existing employee code of conduct policy with your unique business requirements. For instance, if you want to run your subsidiary company under the supervision of a senior employee who excels at handling a new team, your EOR partner offers logistical support to ensure easy expat transfers. As a local guide for your business expansion, your EOR partner will assist you legally in every aspect of your business. With the EOR guide, you can frame robust employee policies that help accelerate the quick implementation of your business plan in compliance with the government regulations of the target country.

EOR as your interim caretaker while preparing for subsidiary company formation

It’s a time-consuming process to gain a thorough understanding of the local culture and employees’ work culture in a given country. As a large company owner, you need to consider taking time to develop a cohesive policy that can help establish a successful business operation in the long run. With an EOR partner, you can easily comprehend how to address challenges lying along the way for subsidiary company formation and effectively sail your ship smoothly. In a nutshell,

EOR will work as your interim caretaker and keep your business running while you’re preparing for the smooth operations of your subsidiary.

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What are the employer of record benefits for small businesses?

Today, more than 400 million small businesses exist worldwide, representing nearly 90% of all existing companies globally. According to the US Chamber of Commerce, the US alone has over 33.2 million small businesses, equaling 99.9% of all American businesses. Also, one interesting fact is that only one-third of these businesses could survive 10 years down the line.

In today’s cutthroat competition, small businesses constantly need to explore several avenues and business opportunities to stay buoyant in the market. Typically, small businesses are on the lookout for highly skilled talent, cost reduction, and business scalability. So, finding a team of professionals in a country with low labor costs and abundant talent can be a game-changer for small businesses. Through this blog, you’ll learn what employer of record (EOR) services do to help small businesses. In other words, the blog explores the major benefits to small businesses of using EOR services. 

Employer of record benefits for small businesses

As a small business owner, you must be facing some dire challenges to stay competitive in the marketplace. Typically, small businesses find two major hurdles that heavily put constraints on their ability to stir business ahead—lack of talent availability and cost management. Let’s explore how EOR services help small businesses achieve maximum benefits in exploring different business opportunities. 

Access to a large talent pool: With EOR assistance, you can easily get access to a large number of highly skilled talent and hire the best candidates that suit your requirements. Hiring top talent with the right skillsets can substantially enhance the overall productivity of your company. EORs help you hire top talents easily with their knowledge and existing networks in the target location. For instance, you might be aware of resource availability in India. The country has nearly 1.5 million technical students graduating from various technical colleges annually. More than 45% of Indian students with technical backgrounds such as B.Tech, B.E., and MBA were found highly employable for various job opportunities. India is home to more than 265 million English-speaking people.

Cost reduction: Working with EORs will help small businesses save time and money when hiring remote professionals abroad. Hiring employees from your home country would cost you more than hiring candidates with the same profile in another country with lower labor costs. For instance, generally, you can hire a software developer in India at a reduced cost of 40-50% compared to the one hired in the US. It means you can save nearly 40% of the employee’s monthly cost per head on average when hiring from India.

Scalability and business expansion: Using EOR services, small businesses can double up their workforce with the same budget used for keeping a team internally. You can easily scale your business and expand your operations in the target country by taking advantage of your EOR partner’s expertise in the local market. As you gradually gain local knowledge, you can ultimately plan to expand your business in the target country by forming a subsidiary company. 

Access to expertise: Having an EOR partner allows you to get easy access to a range of expertise in legal and financial matters. With the help of experts, small businesses can effectively navigate the legal/financial complexities of a given country. In this way, you can avoid costly complaint risks and manage your remote employees effectively.

What does an employer of record do for small businesses?

An employer of record (EOR) works as a local guide for small businesses by providing major support systems that facilitate the smooth hiring and onboarding of employees. In short, it acts as the legal guardian of your overseas employees by managing payroll, taxes, benefits, and compliance for them. To put it simply, EORs are your global HR partners who handle a diverse range of administrative functions related to your employees. As EOR services take care of your employees’ HR functions, you can easily focus on your core business goals. Using EOR services, you can gain additional service facilities, which are listed below:

No legal entity requirements: One significant EOR benefit is that you don’t need to set up a legal entity while hiring top talent in a target country. In other words, an EOR itself is a legal entity that has the expertise and authority to execute functions as an employer in a country on your behalf. On record, your EOR partner is a legal guardian of your employees who are working for you. With your partners’ assistance, small businesses can hire full-time employees in the target country or internationally without compliance risks.

Intellectual property protection: For small businesses, intellectual property (IP) protection is a high priority when entering into a contract. EORs ensure the safeguarding of valuable assets and prevent IP misuse through strict non-disclosure agreements in employment contracts. As EORs hire only full-time professionals and one dedicated team is assigned per business, the chance of misusing IP is reduced to zero.          

Compliance assistance: Minimizing the compliance risks of employing overseas employees is a significant concern for small business organizations. EORs simplify HR complexities and handle payroll processing, withholding tax, and filing income tax returns of your overseas employees promptly to meet regulatory compliance. With the help of EOR expertise, you can easily address compliance requirements and avoid legal complications associated with noncompliance events.

Bottom line

EORs, as a hand-holding guide, help small businesses find the right candidates by accessing a large pool of qualified candidates and hiring them cost-effectively. Your EOR partners take care of all your requirements, from hiring to onboarding new employees in a foreign country, on your behalf.

With EOR services, hiring top remote employees locally and internationally can be effectively handled in a short time and with zero complications. In short, you can streamline your hiring process for top talent in a new country and start your overseas business operations within days.

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How PEO can benefit startups

For every entrepreneur, the success of their start-up lies in the spirit of the employees. Once the business idea translates into a reality, you need a dedicated workforce for the execution of your goal. Every startup has its vibe right from the initial stage of conceptualization, strategizing, and streamlined execution. But ultimately, the business growth of your startup rests on the shoulders of your employees. That is why investors entrust their funding decisions to the growth of potential resources of your company.

Considering the fundamental requirement of the start-up business, do you struggle to source the best-skilled resources and reduce execution overheads while thinking of growing in a competitive market?

You can get rid of these headaches by joining hands with an international PEO. A Professional Employer Organization or EOR (Employer of Record) will equip your team with skilled resources without delving into the hassle of subsidiary formation.

How can a PEO benefit your startup company?

With the help of a PEO based in India, you can employ the most suitable and skilled resources in your organization. A PEO can easily onboard a team from India into your company. A PEO steps in as a legal employer for your company employees and takes upon all the administrative hassles, legal compliances, statutory regulations, bookkeeping, etc, leaving your startup to focus on core business.

According to a study conducted by economists and global leader Laurie Bassi, companies who avail of PEO services reach 40% higher revenue growth, are 50% less likely to go out of business, and experience 14-16% lower turnover rates. You can visit the NAPEO website to find out what the voice of the PEO industry has to say about this industry. 

Engaging with a PEO service company can help your start-up in the following ways:

 Easy availability of skilled resources

Whether you need high-end product developers, digital marketers, engineering designers, or territorial sales employees, a PEO solutions company can source the ideal candidate for you.

India has a high literacy rate with qualified individuals. A dedicated number of educational institutions groom the students into ideal-trained professionals and challenging work positions. You can choose from a plethora of sought-after profiles with skill sets like product design, digital marketing, software development, product testing, data analysis, etc.

India was ranked first for its skilled and trained workforce with more than 3 lakh highly-educated Indians in the OECD (Organization for Economic Cooperation) countries.

The Government of India, Prime Minister Narendra Modi, reorganized the UPA’s Skill India policy to mandatory training of 300 million Indians by 2022 during the National Skill Development Mission announcement.

 Reduction of overheads and burn rate

Your overheads for resources will be cut down to a considerable margin without compromising on the deliverables or quality of work. As the cost of living and overall pay structure in India is affordable compared to western countries.

A PEO will offer benefits like insurance, benefits, and office infrastructure to employees that you as a startup company may not be able to offer, making your startup attractive to top talent and lowering the turnover rates.

Time management

A startup is like a baby business and babies grow fast. The faster growth of your company means it will require more hands for better management.

You can transfer all the HR management and compliance headaches onto a PEO while devoting your time and energy to your core business. A PEO knows the multi-tasking approach required by a startup company, so they leave you with enough bandwidth time to focus on running your business. A PEO in India will ensure your India team complies with all the HR and legal compliances as per Indian law. The PEO will cover your employees under group insurance policies, conduct payroll executions, and taxation compliances.

Competitive edge with a global presence for your startup business

With a PEO organization, you can enjoy the presence of your teams in two different countries. An in-house team of employees at your location and a virtually connected remote team in India. This will increase your company’s brand, credibility, and culture in the competitive market. A PEO will extend hand-holding while learning the business culture in India and set up a skilled remote team for your start-up company as well.

Entering a large consumer market

Research suggests India is expected to become the third-largest consumer market by 2030 and consumer spending in India is expected to grow from $1.5 trillion to $6 trillion by 2030, according to a World Economic Forum report.

Due to urbanization, these days Indian consumers desire a better lifestyle and good salary packages as well. They wouldn’t mind spending extra bucks from their pockets on healthy food and brand-conscious clothes. As per World Economic Forum, it is predicted that by 2030 India will experience a 4x growth in its consumer spending course and have more than a billion Indian internet consumers. The purchases will grow by 40% digitally. Twenty million households will upgrade to a high-income bracket, and the user’s mindset will change. Keeping in mind examples like these, you can start a business decoding the Indian consumer mindset.

A PEO company will help you to enter India and give access to understanding the country’s work culture through team operations in India. The PEO model is a smooth way to explore the potential market in India if you wish to internationalize your business in the future.

Remunance provides large company benefits to startups…

At Remunance, we extend hand-holding to your start-up route in India. When you think of transforming your idea into a start-up company, you probably think about growth and revenue. But probably not about government compliances, payroll, taxation, human resources, etc. Simply transfer that onto us. We will handpick the best talent for your remote team in India.

Our PEO services offerings include HR, payroll, insurance, benefits, and risk management. We also go a step further in providing employee training, leave management, HR management, recruiting, and office infrastructure. To kickstart your business in a few days or know more about our co-employment offerings.