Report Overview

PEOs provide full-service human resource outsourcing as a type of co-employment. A professional employer organization (or PEO) is a company that serves as another company's human resources department. They sometimes offer individual services that companies of every size - from very small to large can leverage on their own.Co-employment refers to a collaboration between a firm and a professional employer organization, in which the company's workers also work for the PEO.

India Professional Employer Organizations (PEOs) Market- Industry Trends & Forecast Report 2027

The India Professional Employer Organizations (PEOs) market reached USD 1,232.8 million in the year 2020 and it is expected to reach USD 2,710.5 million in the year 2027 while growing at a CAGR of 12.4% during the forecast period (2021-2027). Since the last few years, the India Professional Employer Organization has seen significant growth due to India's increasing employment rates and the growing urbanization rate. Many multi-national companies have started leveraging the India professional employer organizations (PEOs) services to reduce the pressure arising from many applicants applying for jobs in India. Furthermore, professional employer organizations keep track of changing rules, regulations, and labor laws for various industries, which would be difficult and time-consuming for firms to do otherwise.

Source: BlueWeave Consulting

India Professional Employer Organizations (PEOs) Market Overview

PEOs provide full-service human resource outsourcing as a type of co-employment. A professional employer organization (or PEO) is a company that serves as another company's human resources department. They sometimes offer individual services that companies of every size - from very small to large can leverage on their own.Co-employment refers to a collaboration between a firm and a professional employer organization, in which the company's workers also work for the PEO. It enables the company to reduce some of its liabilities. Co-employment also allows the client's managers to concentrate their efforts on their day-to-day duties, such as building the business and generating profit.PEOs work with many clients, allowing them to pool personnel from different companies. As a result, risks and insurance costs are reduced. It also enables the PEO to offer a diverse range of services, including access to benefit plans that a small firm might not otherwise be able to afford.

India Professional Employer Organizations (PEOs) Market Forecast and Trends

Growth Drivers

Increasing demand for PEOs software due to work from home environment

COVID-19 disrupted the business model of most companies, and many of them had to opt to work from home to safeguard their employees and to check the spread of the virus. As a result of the prolonged lockdown caused by the second wave of COVID-19, many companies have considered leveraging PEOs. For instance, PepsiCo stated that the company witnessed rising employee productivity by 15% after the flexible working environment, and it reduced absenteeism by 31%, and reduced employee turnover between 10% and 15%. Additionally, many big corporations are choosing the work-from-home trend or offering flexible work time schedules, which adds to the demand for professional employer organizations for better management of the employees, their benefits, compensations, and other HR-related works, which has been positively contributing to the growth of the India professional employer organizations (PEOs) market.

Rising demand for enhancing cost savings

Several small and medium-sized enterprises (SMEs) opted for PEOs as a means for handling employee payrolls, paying employees, finding human resources, and other related activities. This not only helped SMEs survive but also helped them in saving money. A PEO can handle a multitude of duties on behalf of employers, in addition to saving both time and money. PEOs benefit small and medium-sized organizations that may lack the resources, experience, or systems to manage payroll, HR Information System (HRIS), and other HR management responsibilities. Aside from saving the firm money, compliance-related hazards are identified and avoided ahead of time. Such high-cost savings and a great return on investment are driving the growth of the India professional employer organizations (PEOs) market.

 

Restraints

 Loss of control over employees by leveraging PEOs

One of the most difficult aspects of owning a business is giving up a portion of the control. Employers who use PEOs lose the option of choosing which vendors they want to work with, such as health insurers and workers' compensation companies. It is the owners who bear the consequences of an unsuitable provider even though they are not actively involved in the selection process.

Usually, the PEO is the one who holds all the information regarding the hiring of employees. PEOs also have access to all documents submitted by employees. Thus, a PEO holds more power and authority over an employee in comparison to the actual employer, and this may prove to be a threat to the PEO market. As the PEO collaborates with the company in hiring and retaining employees, it is responsible for handling the majority of employment issues, such as payroll and workers' compensation. Thus, in most cases, the company loses control over its employees and this lack of control may prove to be a major restraint hindering the growth of the India professional employer organizations (PEOs) market.

 

Impact of COVID-19 on India Professional Employer Organizations (PEOs)Market

As soon as the COVID-19 was declared a pandemic by the World Health Organization, the India professional employer organizations (PEOs) market had to adapt to the changing trends. When the virus spread, cases increased, and measures to control the spread of the virus got tougher. COVID-19 disproportionately affected developing countries and inducing the employees to stay at home instead of working from office. India's PEO market remained steady during the pandemic. Companies and SMEs, who employed PEO services were able to effectively minimize the effects of the uncertainty caused by the pandemic. The size of SMEs remained almost similar to the size in 2019; however, companies were able to perform better than the companies, who do not employ PEO services. PEOs helped companies handle the situation efficiently without laying off employees and pay employees' salaries due to savings from the employment of PEO services.

 

India Professional Employer Organizations (PEOs)Market- By Type

Based on type, the India professional employer organizations (PEOs) market has been segmented into on-premises and cloud-based. The cloud based segment accounted for the largest share in the India professional employer organizations (PEOs) market. The online segment makes use of software programs, with organizations maintaining records for job candidates. Furthermore, using the web-based channel, PEOs perform hiring and administrative activities besides offering employee benefits and compensation and various other services. On the other hand, the cloud segment provides the same advantages while increasing the platform's scalability, allowing it to process a more significant number of applications than online-based apps thereby benefiting the growth of the India professional employer organizations (PEOs) market.

 

India Professional Employer Organizations (PEOs) Market- By Application

Based on application, the India professional employer organizations (PEOs) market is grouped into SME’s (Small and medium enterprises) and large enterprises. The SMEs segment held the biggest share in the India professional employer organizations (PEOs) market in 2020. Additionally, the large enterprises segment is anticipated to record a healthy CAGR over the upcoming years. Because of the existence of substantial corporate offices, many people have been able to apply for jobs with the world's leading firms. As a result, corporate giants need to deal with an endless number of applicants per day, which is time-consuming and requires resources that may be redirected to other business sections, making it a challenging affair. Because of this, many large corporations turn to PEOs to find people suited to their needs.

Source: BlueWeave Consulting

 

India Professional Employer Organizations (PEOs) Market- By Region

Based on regions, the India professional employer organizations (PEOs) market is divided into North India, East India, West India, and South India. The Southern region of India accounted for the largest share in the market in 2020. On the other hand, the Northern part of the country is expected to record the fastest CAGR during the forecast period (2021-2027). According to the NCP report 2019, the Northern region of India has the most inhabitants in the country, totaling over 421.98 million people, indicating that most individuals are looking for work or are currently working in these areas. As a result of the region's population estimates, the demand for PEOs has been on the rise. The North India region accounts for the second biggest market for the India professional employer organizations (PEOs) market due to the presence of multiple international companies in the region. Rising FDI inflows into the region have also contributed to more excellent employment prospects, driving up demand for PEOs.

Source: BlueWeave Consulting

 

Competitive Landscape

The major players operating in the India professional employer organizations (PEOs) market includes: NewHorizons Global Partners, Global PEO services LLC, Sky Executive, ADP TotalSource, Papaya Global, Velocity Global, Paychex, Synergy HR, OneSource Business Solutions, INS Global, and Husys Ltd, and other prominent players.

The prominent market players have constantly been looking to grow their market presence by helping employers outsource their human resource functions, such as employee benefits, compensation and payroll administration, workers' compensation, and employment taxes.

 

Recent Developments

• In April 2021, Paychex, Inc., the HR software and services company that provides the power of simplicity for increasingly complex workplaces, ranked No. 1 among all solution providers in the newly released 2020-2021 Sapient Insights Annual HR Systems Survey – Voice of the Customer Report, Payroll Administration and Services Application.
• In April 2021, NelsonHall, an industry analyst firm again ranked ADP as a Leader in its Payroll Services NEAT 2021 Assessment. Identified as a Leader in Digital Payroll Capability, Multi-Country Capability, and Asia Pacific Presence and Capability, ADP's performance in every area of the assessment is a result of its consistency in providing a modern payroll experience tailored to address the challenges of an evolving world of work.

 

Scope of Report

Attribute	Details
Years considered	Historical data- 2017-2020 Base Year- 2020 Forecast- 2021-2027
Facts covered	Revenue in USD million
Market coverage	North India, East India, South India, West India
Product/ Service segmentation	By Type, By Application, By End-Users, By Region
Key Players	NewHorizons Global Partners, Global PEO services LLC, Sky Executive, ADP TotalSource, Papaya Global, Velocity Global, Paychex, Synergy HR, OneSource Business Solutions, INS Global, and Husys Ltd, and others prominent players.

 

By Type

• Cloud based
• On-Premise

By Application

• SMEs
• Large Enterprises

By End-User

• IT & telecom
• BFSI
• Manufacturing & retail
• Professional services
• Construction &Industrial Engineering
• Others

By Region

• North India
• East India
• West India
• South India

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Research Methodology
   1. Qualitative Research
      1. Primary & Secondary Sources
   2. Quantitative Research
      1. Primary & Secondary Sources
   3. Breakdown of Primary Research Respondents, By Region
   4. Market Breakdown & Data Triangulation
   5. Assumption & Limitation
3. Executive Summary
4. India Professional Employer Organizations (PEOs) Market Insights
   1. DROC Analysis
      1. Growth Drivers
      2. Restraints
      3. Opportunities
      4. Challenges
   2. Recent Development
   3. Technological Landscape
   4. Porter’s Five Forces Analysis
   5. India Professional Employer Organizations (PEOs) Development Trends under COVID-19 Outbreak Analysis
5. India Professional Employer Organizations (PEOs) Market Overview
   1. Market Size & Forecast (2017-2027)
      1. By Value (USD Million)
   2. Market Share & Forecast (2017-2027)
      1. By Type
         1. On-Premises
         2. Cloud-Based
      2. By Application
         1. SMEs (Small and Medium Enterprises)
         2. Large Enterprises
      3. By End User
         1. IT &telecomm
         2. BFSI
         3. Manufacturing &Retail
         4. Professional Services
         5. Construction & Industrial Engineering Sector
         6. Others
      4. By Region
         1. Northern India
         2. Eastern India
         3. Western India
         4. Southern india
6. Northern India Professional Employer Organizations (PEOs)Market
   1. Market Size & Forecast (2017-2027)
      1. By Value (USD Million)
   2. Market Share & Forecast (2017-2027)
      1. By Type
      2. By Application
      3. By End User
7. Eastern India Professional Employer Organizations (PEOs) Market
   1. Market Size & Forecast (2017-2027)
      1. By Value (USD Million)
   2. Market Share & Forecast (2017-2027)
      1. By Type
      2. By Application
      3. By End User
8. Western India Professional Employer Organizations (PEOs) Market
   1. Market Size & Forecast (2017-2027)
      1. By Value (USD Million)
   2. Market Share & Forecast (2017-2027)
      1. By Type
      2. By Application
      3. By End User
9. Southern IndiaProfessional Employer Organizations (PEOs) Market
   1. Market Size & Forecast (2017-2027)
      1. By Value (USD Million)
   2. Market Share & Forecast (2017-2027)
      1. By Type
      2. By Application
      3. By End User
10. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. India PEOs Leading Company Analysis, 2020
    3. Competitive Benchmarking, By Operating Parameters
11. Company Profile (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) **
    1. INS Global
    2. Sky Executive
    3. NewHorizons Global Partners
    4. OneSource Business Solutions
    5. Synergy Source HR Solutions
    6. Automatic Data Processing, Inc.
    7. Paychex, Inc.
    8. Papaya Global
    9. Shrestha Business Solutions
    10. Global PEO services LLC
    11. Husys Ltd
    12. Velocity Global LLC
    13. Remunance

 

List of Figures

 

Fig 1 : India PEO Market Segmentation

Fig 2: India PEO Market Size, By Value (USD Million), 2020-2027

Fig 3: India PEO Market, By End User, By Value (in %), 2020

Fig 4 : Porters Five Forces Analysis

Fig 5 : India Professional Employer Organizations (PEOs) Market Size, By Value (USD Million), 2017-2027

Fig 6: India Professional Employer Organizations (PEOs) Market Share (%), By Type, By Value, 2017-2027

Fig 7: India Professional Employer Organizations (PEOs) Share (%), By Application, By Value, 2017-2027

Fig 8 : India Professional Employer Organizations (PEOs) Market Share (%), By End-User, By Value, 2017-2027

Fig 9: India Professional Employer Organizations (PEOs) Market Share (%), By Region, By Value, 2017-2027

Fig 10: North India Professional Employer Organizations (PEOs) Market Size, By Value (USD Million), 2017-2027

Fig 11: North India Professional Employer Organizations (PEOs) Market Share (%), By Type, By Value, 2017-2027

Fig 12: North India Professional Employer Organizations (PEOs) Share (%), By Application, By Value, 2017-2027

Fig 13: North India Professional Employer Organizations (PEOs) Market Share (%), By End-User, By Value, 2017-2027

Fig 14: East India Professional Employer Organizations (PEOs) Market Size, By Value (USD Million), 2017-2027

Fig 15: East India Professional Employer Organizations (PEOs) Market Share (%), By Type, By Value, 2017-2027

Fig 16: East India Professional Employer Organizations (PEOs) Share (%), By Application, By Value, 2017-2027

Fig 17: East India Professional Employer Organizations (PEOs) Market Share (%), By End-User, By Value, 2017-2027

Fig 18: West India Professional Employer Organizations (PEOs) Market Size, By Value (USD Million), 2017-2027

Fig 19: West India Professional Employer Organizations (PEOs) Market Share (%), By Type, By Value, 2017-2027

Fig 20: West India Professional Employer Organizations (PEOs) Share (%), By Application, By Value, 2017-2027

Fig 21: West India Professional Employer Organizations (PEOs) Market Share (%), By End-User, By Value, 2017-2027

Fig 22: South India Professional Employer Organizations (PEOs) Market Size, By Value (USD Million), 2017-2027

Fig 23: South India Professional Employer Organizations (PEOs) Market Share (%), By Type, By Value, 2017-2027

Fig 24: Southern India Professional Employer Organizations (PEOs) Share (%), By Application, By Value, 2017-2027

Fig 25: Southern India Professional Employer Organizations (PEOs) Market Share (%), By End-User, By Value, 2017-2027

Fig 26 : India PEO Market: Leading Companies

 

List of Tables

 

Table 1: India Professional Employer Organizations (PEOs) Market Size, By Type, By Value (USD Million), 2017-2027

Table 2: India Professional Employer Organizations (PEOs) Market Size, By Application, By Value (USD Million), 2017-2027

Table 3: India Professional Employer Organizations (PEOs) Market Size, By End-User, By Value (USD Million), 2017-2027

Table 4: India Professional Employer Organizations (PEOs) Size. By Region, By Value (USD Million), 2017-2027

Table 5: North India Professional Employer Organizations (PEOs) Market Size, By Type, By Value (USD Million), 2017-2027

Table 6: North India Professional Employer Organizations (PEOs) Market Size, By Application, By Value (USD Million), 2017-2027

Table 7: North India Professional Employer Organizations (PEOs) Market Size, By End-User, By Value (USD Million), 2017-2027

Table 8: East India Professional Employer Organizations (PEOs) Market Size, By Type, By Value (USD Million), 2017-2027

Table 9: East India Professional Employer Organizations (PEOs) Market Size, By Application, By Value (USD Million), 2017-2027

Table 10: East India Professional Employer Organizations (PEOs) Market Size, By End-User, By Value (USD Million), 2017-2027

Table 11: West India Professional Employer Organizations (PEOs) Market Size, By Type, By Value (USD Million), 2017-2027

Table 12: West India Professional Employer Organizations (PEOs) Market Size, By Application, By Value (USD Million), 2017-2027

Table 13: West India Professional Employer Organizations (PEOs) Market Size, By End-User, By Value (USD Million), 2017-2027

Table 14: Southern India Professional Employer Organizations (PEOs) Market Size, By Type, By Value (USD Million), 2017-2027

Table 15: Southern India Professional Employer Organizations (PEOs) Market Size, By Application, By Value (USD Million), 2017-2027

Table 16: South India Professional Employer Organizations (PEOs) Market Size, By End-User, By Value (USD Million), 2017-2027

Table 17: List of Key Players and Their Offerings

Table 18: Competitive Benchmarking, by Operating Parameters

Table 19: INS Global Overview

Table 20: Sky Executive Overview

Table 21: New Horizons Global Partners Overview

Table 22: One Source Business Solutions, LLC Overview

Table 23: Synergy Source HR Solutions Overview

Table 24: Automatic Data Processing, Inc. Overview

Table 25: Paychex, Inc. Overview

Table 26 : Paychex, Inc. Overview

Table 27: Papaya Global Overview

Table 28: Shrestha Business Solutions Overview

Table 29: Global PEO Services Overview

Table 30: Husys Limited Overview

Table 31 :Husys Limited Overview

Table 32: Velocity Global, LLC Overview

Table 33: Remunance Overview