Thursday, April 6, 2017

Difference between in-house and outsourced payroll service

Before the advent of the integrated HRMS solutions, organizations of all sizes chose to handle their payroll processing in-house for multiple reasons, including:

  • Control over timing, processes, and costs
  • Security of data
  • Ability to customize systems and reporting
  • Payroll and financial systems
  • Integration between the organization’s HR

When it comes to making a decision between Inhouse Vs. Outsource payroll, there are multiple things to consider.

Image result for payroll outsourcing

Off-the-shelf the payroll software packages are available, glance at first as they might seem to meet your needs. But, upon closer inspection, you may find this one-size-fits-all need is not the solution it seemed and thus has no value at all.

On the other side, the in-house system has been in use for many years as well as it is written and supported by specialist IT staff within the organization. The statutory updates usually occur on an annual basis. But you will have to remember that, these types of systems often use very older technology as well as the cost of upgrading is way more.

Outsourcing payroll completely is an option for the organizations who would prefer to concentrate on their core activities as well as developing their business.

This system certainly replaces the need to have in-house payroll specialists, who have become more of a requirement in the recent years because of the increasing complexity of the payroll legislation. The prices of payroll outsourcing companies in Pune are also more manageable, as the organization would know years in advance how much it will cost in order to provide and support the function of payroll service. The organizations who choose this pay a monthly charge with no hidden charges.

A payroll service provider will also deliver their best practices as well as help streamline your organization's payroll functions. In fact, outsourcing payroll can be the catalyst for the identify and improve upon the current processes. But with an in-house payroll department, there is a tendency to maintain a situation often.


Does your business have the expertise and time to take their focus away from their business in order to enjoy the deal with payroll weekly or monthly or quarterly? Payroll is an important task that has natural peaks and troughs all over the month. This will fill this role internally and be cost effective to your business


Payroll is the most sensitive subject within a business, probably. It is an indiscretion that can cause the huge upset. So are you sure that your organization can ensure that sensitive information is kept confidential?


Here, it goes without saying that your employee will require payment on time, and every time. So, the payroll function must be accurate and must be processed when it’s due to be it the holiday, sickness or any other circumstances that are unforeseen.

Though the case for payroll outsourcing companies in Pune is stronger than ever, some organizations still cling to the outdated belief that an in-house payroll team remains the preferred approach. But, isn’t it time to dispel the myths to make an informed decision about the approach that suits the unique needs of your mid-sized organization?

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