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How to optimize business costs using EOR service in Asia: India’s example

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In today’s interconnected world, it is a common practice for businesses big and small to look for optimal candidates across continents. Regions like Eastern Europe, Latin America, and Southeast Asia are known to offer competitive outsourcing rates for skilled work compared to the global West.

While some employers find it challenging to overcome stereotypes and misconceptions about working practices in regions geographically distant from their headquarters, others take full advantage of international and intercultural talent pools.

In particular, the demand for outsourcing services is on the rise in the southern and southeastern parts of Asia, with countries like India, Thailand, Indonesia, and the Philippines offering highly qualified specialists in IT and software development, BPO, digital marketing, accounting and finance, HR, multimedia, and more. Contrary to West-centric beliefs, local teams can achieve deliverables that are equal to, if not surpassing, those of counterparts in Europe or North America.

With this said, let us take a closer look at the benefits of hiring in South/Southeast Asia for businesses seeking to reduce operational costs without compromising the quality of work – and how EOR and PEO services can simplify and propel the process. Based on our extensive experience, India is the best destination in the region for this purpose as it offers the lowest employer taxes. Thailand, Indonesia, and the Philippines similarly offer attractive tax conditions and labor costs per capita, and the decision to outsource to one of these countries should be based on industry-specific needs.


What are the advantages of hiring in India?

As mentioned above, India boasts a cost-effective professional environment with low employer taxes and competitive wages compared to the global West. The talent pool is abundant across industries such as IT, engineering, finance, customer service, and healthcare. English is one of the country’s official languages, and many local specialists are fluent speakers or even have bilingual proficiency due to their English-speaking educational backgrounds.

In contrast to European countries with their intricate and often non-automated bureaucratic processes, India allows for a significantly higher speed of employee registration, providing businesses with the advantage of promptly integrating new hires. As your EOR provider in India, we guarantee employee registration with social security institutions within 24 hours.

India’s labor laws and immigration regulations make it possible to hire locals and expats alike – a big perk for companies looking for opportunities to relocate existing or potential team members who do not hold Indian citizenships. Unlike in Europe or the States, the process is relatively uncomplicated, and with a reliable provider of EOR and PEO services in India it becomes even more streamlined and cost-saving.


Decision makers wondering how to reduce operational costs will be happy to find out that no VAT (Value Added Tax) is charged for employer to employee transactions in India.

Another favorable condition is the country’s time zone (GMT+5:30) which allows for significant overlap with Western business hours, simplifying real-time collaboration and communication with Indian teams.

I am interested in EOR/PEO services in Asia. What can Acvian offer?

As an EOR/PEO provider, we successfully employ and relocate expats all over the world – and Asia is no exception. Entering a new market in a whole other part of the world is challenging enough in itself, and internal teams often lack time and resources to deep-dive into the intricacies of local labor legislation during this important time. That’s when we step in with comprehensive support at every stage of the process. If you are interested in talent outsourcing to India, the Philippines, Indonesia, and Thailand, but unsure of how cost-effective it will be in your specific case, you can request a detailed breakdown from us on how much your business can save per capita by switching to employees in South/Southeast Asia.

Here is a case study that demonstrates the advantages of talent outsourcing to India. Company A, based in Germany, chose to optimize their HR resources by hiring a fully remote team from India. As a result, Company A successfully reduced monthly payroll costs by 700 EUR per employee per month. Additionally, they experienced a decrease of 500 EUR in tax-related expenses without any compromise in the quality of work or the team’s deliverables.

For an instant calculation of net salary and employer taxes in India, we recommend using Payroll Cost Estimator.

As an additional service, we offer the option to transition your contractors in India into full-time hires operating under employment agreements. Following the conversion, they will be entitled to social and legal protections, along with additional employee benefits.

What makes Acvian stand out from other EOR/PEO providers on the market?

If you are looking for a fast and reliable way to reduce your operational costs through hiring in Asia, the last thing your business needs is an incompetent EOR/PEO provider with unreasonable service fees. Save time, headspace, and resources – delegate the task to us. We offer in-depth expertise in employing both local and international talent, competitive prices for EOR/PEO services, and a committed people-first approach. Schedule an e-meeting with our team  member or leave us a message to get started!

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