Best Professional Employer Organization (PEO) Service Providers in India in 2023

Best Professional Employer Organization (PEO) Service Providers in India in 2023
Best PEO Service Providers in India

PEO Service has been around for a while, but many people aren't sure what it stands for, what its benefits are, or how it works. However, in recent years, several different Professional Employer Organization (PEO) service providers have expanded their reach, contacting and delivering useful services to a large number of firms in India.

However, before we can take advantage of PEO Service Providers, we must first grasp what PEO is and how its business model works. Here in this blog, we will explain PEO, how it works, and some of the best PEO Service providers in India in this article.

What is a Professional Employer Organization (PEO)?

A Professional Employer Organization (PEO) is a company that provides HR outsourcing services to small and medium-sized businesses. PEOs act as co-employers, taking on certain HR responsibilities, such as payroll processing, employee benefits administration, tax compliance, and risk management, on behalf of their client companies.

As per the National Association of Professional Employer Organizations (NAPEO).

PEOs enable clients to cost-effectively outsource the management of human resources, employee benefits, payroll, and workers' compensation

PEOs were initially introduced in the United States of America in response to a dearth of qualified employees for small businesses, which was causing them to lose ground to larger corporations. To address this problem, they would hire workers through a process called co-employment. As a result, local businesses thrived and profited greatly, and the PEO concept drew a large number of people and became quite popular.

What is Professional Employer Organization?

How Does The PEO Model Work?

The PEO (Professional Employer Organization) model works by establishing a co-employment relationship between the PEO and the client company. Under this arrangement, the PEO becomes the "employer of record" for tax and regulatory purposes, while the client company retains day-to-day control over its employees. Here's a general overview of the PEO model:

  1. Contractual Agreement: The client company signs a contract with the PEO, which outlines the HR services to be provided by the PEO and the responsibilities of each party.
  2. Co-Employment Relationship: The PEO becomes the "employer of record" for tax and regulatory purposes, taking on responsibilities such as payroll processing, employee benefits administration, and HR compliance. The client company retains day-to-day control over its employees.
  3. Shared Responsibilities: The PEO and the client company share certain HR responsibilities, with the PEO handling tasks such as payroll processing, employee benefits administration, and HR compliance, and the client company retaining responsibilities such as setting company policies and managing employee performance.
  4. Cost Savings: By outsourcing HR functions to a PEO, businesses can access a range of HR services and resources at a lower cost than if they were to handle these functions in-house.
WIDGET: leadform | CAMPAIGN: Link Building

What Does Professional Employer Organization (PEO) Do For Business in India?

Knowing that the PEO is handling all of the employee management and administrative needs, one can focus on their goals and build their firm with ease. Following are some major functions of a PEO in India:

1. Paychecks and Tax Preparation- Salary processing is handled by PEOs, who can also pay local, state, and federal hiring taxes in some situations. Many even combine salary and timesheets, reducing data input duplication and mistakes.

2. Regulations- PEOs often have regulatory professionals on staff that can assist you in avoiding huge fines. Tax rate law and reporting requirements, insurance schemes, workers' insurance, recruiting and HR regulation may all be areas of competence for them.

3. Risks and Security- Safety audits and skills training are occasionally provided by PEOs. Investigations by the Occupational Safety and Health Administration (OSHA) may also require their assistance.

4. Assistance with Human Resources- In many circumstances, a PEO has Human resource professionals on staff who can assist with HR issues. If a business has such an in-house Human resource representative, the PEO will collaborate with them on a tactical and operational level.

5. Management of Talent- Recruitment and targeted employment, staff training and participation, and reward systems are all services provided by some PEOs.

Advantages of PEO

Following are some of the major advantages of hiring a PEO.

  • Saves Money- When a business is using PEO services, it is saving money and other assets as it doesn’t have to hire a different team for hiring employees, taking care of their needs, and maintaining the work. The PEO does this for the business, hence saving money, time, and effort.
  • Saves Time- By taking care of all the employees work, all the administrative work, and documentation, PEO saves time for the company, and that time can be used for different needs, thus helping in expanding the business.
  • Better Employment Process- PEOs manage most of the human resource management work, allowing companies to concentrate on brand and personnel management to enhance the quality of work life.
  • Improved Employee Perks- Benefits packages, such as health, are frequently negotiated by PEOs.
  • Efficient Procedures- Organizations should expect more efficient administration and HR procedures when they use PEOs.

Disadvantages of PEO

Following are some disadvantages of hiring a PEO service provider in India.

  • Loss of Command- Command over certain procedures in one business can be compromised due to an outer company’s influence on the staff and the working culture.
  • Loss of Inner HR Management- Businesses' HR departments suffer a loss of importance when they hire PEOs. This could cause issues after the PEO is no longer associated.
  • Loss of Privacy of Paperwork- There is a loss of privacy when it comes to employee papers. Employers who use PEOs are usually required to provide the majority of company worker documentation. This could raise security vulnerabilities.

Best PEO Service Providers in India in 2023

Small and medium-sized businesses in India are facing an ever-increasing number of HR challenges, from compliance with labor laws to the administration of employee benefits. As a result, many businesses are turning to Professional Employer Organizations (PEOs) to help manage these HR functions. Here, we will examine the best PEO service providers in India, exploring their services and pricing. Whether you're a small business looking to streamline HR processes or a medium-sized business looking for cost-effective HR solutions, this blog will provide you with the information you need to choose the best PEO for your business.

Following are some major PEO service providers in India.

  1. Horizons
  2. Sky Executive
  3. Global PEO Services
  4. Husys


Company Name Horizons
Industries Financial Services
Type Privately Held
Headquarter Singapore
Founded 2018
Horizons - Best PEO Service Providers in India

Horizons (formerly New Horizons Global Partners) is a world-renowned PEO that can also fulfil the demand in India as a PEO. Horizons takes care of your business's payroll, employee taxes, and compliance obligations in India. By leveraging this approach, you can start doing business in India quickly and conveniently with no need to create a separate subsidiary firm - saving both time and money.

Horizons can help a business enter the Indian market quickly, hire employees or groups on its account, and handle all bureaucratic and regulatory difficulties.

Sky Executive

Company Name Sky Executive
Industries Human Resource, Recruiting
Type Privately Held
Headquarter Pune, India
Founded 2018
Sky Executive - Best PEO Service Providers in India
Sky Executive - Best PEO Service Providers in India

Sky Executive has ample experience assisting overseas businesses with their expansion into India. Sky Executive, is one of the best PEOs based in Pune, India, assists businesses in establishing operations in the country. It enables businesses to transfer divisions, products, or activities to a qualified and experienced workforce in India and reap the benefits of huge cost savings.

Sky Executive provides its services such as office setup, hiring new employees, conducting payroll, general management of employees and corporate taxation. That makes it the ideal partner for businesses requiring assistance in managing staff in India.

Global PEO Services

Company Name Global PEO Services
Industries Human Resources Services
Type Privately Held
Headquarter Salt Lake City, UT
Founded 2017
Global PEO Services - Best PEO Service Providers in India

Global PEO Services (GPS) is one of the top Professional Employer Organizations in India, allowing businesses to hire staff in India without needing to set up a legal entity. Global PEO Services takes care of all human resources, benefits, payroll, and tax needs for the employees, so that the new hires and headquarter teams can focus on their business goals. Opting for Global PEO Services is the quickest way to set up a workforce in India.


Company Name Husys - A People2.0 Company
Industries Human Resources Services
Type Privately Held
Headquarter Hyderabad, Telangana
Founded 2002
HUSYS - Best PEO Service Providers in India
HUSYS - Best PEO Service Providers in India

Husys, the top PEO service provider in India, specializes in developing and managing HR systems for small and medium enterprises (SMEs). Since 2002, they have provided HR services to more than 3000 organizations via cost-efficient solutions. Husys, with its experienced and dedicated human resources team, has gained expertise in managing HR functions such as consulting, recruitment, employer of record services, business incubation, outplacement personnel solutions, organizational competency development and talent acquisition.

Husys claims to offer the greatest experience and authentic HR services to employees in accordance with Indian labour laws. Husys' highly qualified experts will look after the personnel, as well as any documentation and risks.


PEOs can be of significant assistance and benefit to a company's growth, particularly if the company is small and needs to acquire competent personnel while saving time and money in order to expand. It is up to the client and their type of business, as well as their plans for expansion. There are numerous options and PEOs available to assist them in reaching their objectives. By choosing the right PEO service provider in India, businesses can focus on their core operations while leaving the HR management to the experts.


Why is PEO important?

New enterprises can use PEOs to increase sales and efficiency, emphasize on its main objective, and expand business.

Who employs the services of a professional employer organization (PEO)?

Several organizations use PEO services. Some of them are:

  • Accountancy companies
  • High-tech corporations
  • Local businesses

What does a PEO charge?

A PEO (Professional Employer Organization) typically charges a fee based on a percentage of the total payroll for the employees it is managing. The exact percentage can vary depending on the size of the business, the number of employees, and the services being provided. PEO costs are estimated to be around 2-12 % of earnings, according to industry analysts.

What services do PEO Service Providers offer?

PEO service providers offer a range of HR services including payroll processing, employee benefits, compliance support, and more.

Why should businesses use a PEO Service Provider in India?

By partnering with a PEO service provider in India, businesses can access a suite of HR services, freeing up time and resources to focus on their core operations.

What should businesses look for in a PEO Service Provider?

When choosing a PEO service provider, businesses should look for a company with a proven track record of delivering high-quality HR solutions, a broad range of HR services, and competitive pricing.

Yes, a PEO service provider can help with compliance and legal issues related to HR management, such as employment laws and regulations.

Must have tools for startups - Recommended by StartupTalky

Read more