INTRODUCTION Outsourcing is the process of shifting tasks and services which were hitherto performed in-house to outside vendors (contracted out). It is a strategic decision to give a task or activity to an independent contractor to improve service and product quality, reduce production cycle times, lower costs, increase focus on core competencies, and in general, enhance organizational effectiveness.

1. PAYROLL OUTSOURCING:
A NEW PARADIGM
MOHAMMED ASRAR
12YACMA112

2. INTRODUCTION
 Outsourcing is the process of shifting tasks and
services which were hitherto performed in-house to
outside vendors (contracted out).
 It is a strategic decision to give a task or activity to an
independent contractor to improve service and
product quality, reduce production cycle times, lower
costs, increase focus on core competencies, and in
general, enhance organizational effectiveness.

3. PAYROLL OUTSOURCING
 Payroll outsourcing is one such process which is
related to employee compensation
 Employee salary is the remuneration received by an
employee in return for his/her contribution to the
organization.
 Payroll outsourcing can be defined as the process of
outsourcing to do the routine work of managing
salary, its calculation and payment, along with any
other related functions of a firm for a specific fee to a
third party.

4. WHY PAYROLL NEEDS TO BE OUTSOURCED?
 Payroll outsourcing helps valuable human
resources inside the organization to focus more
on strategic activities for generating the added
value and to free the management’s time for
strategic decision making.
 Cost reduction.
 The other reasons for outsourcing are:
 Lack of in-house expertise,
 Lack of interest in keeping the process inside the
organization, &
 To avoid risk

5. BENEFITS OF OUTSOURCING
 Reduce Cost
 Avoid Problems Due to Attrition
 Increase Efficiency
 Increase Productivity
 Complies with Government Regulations

6. CHALLENGES OF PAYROLL OUTSOURCING
 Accuracy and Real Time Processing
 Keeping Down Technology Acquisition and
Maintenance Costs
 Integration with Applications
 Flexibility of Various Scenarios

7. CONCLUSION
 Payroll outsourcing is one of the innovative practices
in HR which helps to avoid unnecessary risk and
effort to meet various objectives of the organization.
 The propensity to outsource payroll is the highest,
resulting in a huge opportunity.
 When the size of an organization is small, the
accounting firms are the preferred payroll service
providers.
 Eventually organizations not only outsource payroll,
but also consider options of outsourcing other HR
transactions to the same service provider.

8. THANK YOU