What is back office process outsourcing in India?

Back office process outsourcing in India involves delegating administrative, finance, HR, data processing, and support functions to third-party service providers based in India.

Is outsourcing back office processes to India cost-effective in 2026?

Yes, it remains cost-effective in 2026 due to lower operational costs, scalable talent availability, and process maturity across Indian outsourcing providers.

What is the difference between back office outsourcing and EOR in India?

Outsourcing transfers work delivery to a vendor, while an Employer of Record (EOR) hires employees who work exclusively under your management and direction.

How much does back office process outsourcing in India cost?

Back office outsourcing costs in India typically range from USD 5–15 per hour, depending on function complexity, service level, and data sensitivity.

Is payroll compliance a risk when outsourcing to India?

Payroll compliance risks arise if worker classification and contracts are unclear, especially when long-term control resembles direct employment without proper legal structure.

When should companies switch from outsourcing to hiring employees in India?

Companies should switch when they need greater control, long-term team stability, IP protection, or tighter integration with internal processes.

What labour laws in India apply to outsourced teams?

Outsourced teams are governed mainly by contract law, while EOR-hired employees fall under Indian labour laws covering wages, benefits, and social security.

Can Employer of Record services replace back office outsourcing?

Yes, Employer of Record services can replace outsourcing when companies want dedicated back office teams with full compliance and direct operational control.

Back Office Process Outsourcing in India vs EOR: 2026 Guide

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