Contract staffing, EOR, payroll, managed services or permanent hiring?
Five ways to build a team in India, compared side by side. The right one depends on who finds the people, who employs them and who answers for the results.
The five models at a glance
| Contract staffing | Employer of Record | Payroll outsourcing | Managed services | Permanent hiring | |
|---|---|---|---|---|---|
| Who finds the people? | OmHRA | You | You | OmHRA | OmHRA |
| Who is the legal employer? | OmHRA | OmHRA | You | OmHRA | You |
| Who directs the daily work? | You | You | You | OmHRA | You |
| Who answers for results? | You | You | You | OmHRA, to agreed service levels | You |
| Who runs payroll and compliance? | OmHRA | OmHRA | OmHRA | OmHRA | You |
| How you pay | Monthly: worker cost plus markup | Monthly: salary cost plus fixed fee per person | Monthly: fixed fee per employee | Monthly: fixed fee for agreed scope | One-time fee, % of annual CTC |
| Best for | Scaling teams without adding headcount | Hiring people you’ve already chosen, or hiring before your India entity exists | Taking payroll admin off your HR team | Handing over a whole function, like support desks or talent coordination | Long-term, mid-senior roles |
Which one should you choose?
- You need people and don’t want to add headcount: contract staffing.
- You’ve already picked the people, or have no India entity yet: Employer of Record.
- Your employees stay yours, but payroll is eating your HR team’s time: payroll outsourcing.
- You want an outcome, not a headcount: managed services or RPO.
- The role is long-term and senior: permanent hiring.
Many clients combine them, for example contract staffing for a support team and permanent hiring for its manager.
For job seekers: contract job or permanent job?
| Contract role through OmHRA | Permanent role with a company | |
|---|---|---|
| Your employer on paper | OmHRA | The company |
| Where you work | In the client company’s team | In the company’s team |
| Salary and PF | Paid by OmHRA every month, with PF, ESI where applicable and statutory benefits | Paid by the company, with PF and statutory benefits |
| Typical length | Six months to several years; our average is over two years | Open-ended |
| Getting in | Often faster, with a recruiter preparing you for interviews | Usually a longer process |
| Fees to you | None, ever | None |
A contract role with a global company is real experience on your CV, and some clients do move contract staff onto their own rolls. See open jobs