India has become an important location for companies building software engineering, cloud, DevOps, cybersecurity, QA, data and technical support teams. But hiring employees in India involves more than finding qualified candidates.
International companies also need to consider employment contracts, payroll, statutory requirements, employee benefits, onboarding, HR administration, intellectual property protection and ongoing employee management.
For companies that want to build an India-based technology team without immediately establishing their own Indian entity, an Employer of Record (EOR) can provide a practical employment structure.
Why Companies Hire IT Employees in India
India offers access to a large technology workforce across software development, cloud infrastructure, cybersecurity, data, artificial intelligence, quality assurance and technical support.
Companies may choose to hire in India when they want to:
- Build a dedicated engineering team
- Expand software development capacity
- Add DevOps and cloud expertise
- Establish cybersecurity capabilities
- Build QA and automation teams
- Access data and AI professionals
- Provide technical or application support
- Establish an initial technology presence in India
However, creating an employment infrastructure before hiring the first few employees can require significant administrative planning.
This is where an India EOR model can be considered.
What Is an India EOR?
An Employer of Record allows a company to employ eligible workers in India through a local employment structure without immediately establishing its own Indian entity.
The EOR becomes the local employer responsible for agreed employment administration, while the client company continues to manage the employee’s day-to-day work.
For technology companies, this distinction is particularly important.
Your company can continue to control:
- Technical projects
- Engineering standards
- Product responsibilities
- Technical interviews
- Candidate selection
- Day-to-day work
- Performance expectations
- Technology tools and systems
- Access to technical environments
The EOR manages the employment administration associated with the workforce.
How to Hire IT Employees in India Through an EOR
The process can generally be structured into four stages.
- Define Your Technology Hiring Requirements
Start by identifying the roles you need, where the employees will work, expected compensation, employment requirements and planned team size.
For example, your initial India team could include:
- Software developers
- Full-stack engineers
- DevOps engineers
- Cloud engineers
- QA engineers
- Automation testers
- Cybersecurity professionals
- Data engineers
- AI and machine-learning professionals
- Technical support specialists
Clearly defining these requirements helps establish the employment and onboarding process.
- Select Your Candidates
Your company can continue to manage candidate evaluation and technical interviews.
The hiring company should retain control over the final selection because it understands the technical requirements, team structure and project expectations.
Once the candidate is selected, the EOR can coordinate the employment setup.
- Complete Employment and Onboarding
The EOR can manage employment documentation, onboarding administration, payroll setup and applicable statutory processes.
Depending on the arrangement, this may include:
- Employment agreements
- Employee documentation
- Payroll setup
- Benefits administration
- Background verification coordination
- Statutory processes
- Employee records
- Onboarding administration
This allows the technology company to concentrate on getting the new employee productive rather than building the employment administration from scratch.
- Manage and Scale the Team
After onboarding, the company continues to manage the employee’s day-to-day responsibilities.
The EOR handles the agreed employment administration, including payroll and ongoing HR support.
As the technology team grows, additional employees can be added through the same employment structure.
Hire IT Employees in India Without Setting Up a Company
Build your India-based IT team without establishing your own Indian legal entity. Akross manages employment, payroll, statutory compliance, and HR administration while you manage your employees and their day-to-day work.
What Technology Companies Should Consider Before Hiring in India
Technology hiring has several considerations that may be more important than in other types of workforce expansion.
Intellectual Property and Confidentiality
Technology employees may have access to source code, product designs, technical documentation, customer information, databases and other proprietary information.
Employment documentation should therefore address confidentiality and ownership of company-created intellectual property appropriately.
Companies should ensure that their employment documentation and internal policies align with their technology, security and IP requirements.
Background Verification
Technology employees may receive access to source-code repositories, production environments, cloud infrastructure or customer systems.
Depending on the role and company requirements, background verification may therefore form part of the hiring process.
An EOR can coordinate agreed background verification requirements as part of employee onboarding.
Device and Access Security
Employment administration and technical security are different responsibilities.
Your IT or security team should define requirements such as:
- Company-managed devices
- Identity and access management
- Multi-factor authentication
- VPN access
- Endpoint protection
- Source-code repository permissions
- Data-access controls
- Security monitoring
- Employee offboarding and access removal
The company should retain control over its technology environment and security policies while the EOR manages the employment administration.
Notice Periods and Employment Terms
Technology companies should establish clear employment terms covering areas such as notice periods, resignation procedures, termination processes, confidentiality and transition responsibilities.
Any restrictive-covenant provisions should be reviewed according to applicable Indian law rather than simply copying employment terms used in another country.
Does an EOR Mean You Lose Control of Your IT Team?
No.
One of the common misconceptions about EOR services is that the EOR takes over management of the employee.
Under a typical EOR arrangement, the technology company continues to manage the employee’s daily work.
For example:
Your Company Manages | EOR Manages |
Candidate selection | Employment documentation |
Technical interviews | Payroll administration |
Daily work | HR administration |
Projects | Employee records |
Engineering standards | Applicable statutory processes |
Performance expectations | Employment administration |
Technical tools | Benefits administration |
Technical security policies | Onboarding/offboarding administration |
This separation allows the company to retain operational control while outsourcing the local employment administration.
Which IT Roles Can Be Hired Through an India EOR?
An India EOR can support a wide range of technology functions, subject to the applicable employment arrangement.
Software Engineering
Companies can build frontend, backend, full-stack and application development teams.
DevOps and Cloud
India-based teams can include DevOps engineers, cloud engineers, SRE professionals and infrastructure specialists.
Cybersecurity
Companies may hire security engineers, security analysts, SOC professionals and information security specialists.
QA and Automation
QA engineers and automation specialists can support software testing and quality assurance.
Data and AI
Companies can hire data engineers, analysts, machine-learning professionals and AI specialists.
Product and Technical Management
India teams can also include product managers, technical product specialists and business analysts.
IT Infrastructure
System administrators, network engineers and infrastructure professionals can be part of an India technology team.
Technical Support
Application support, technical support and IT service professionals can support customers and internal operations.
What About Permanent Establishment Risk?
Using an EOR does not automatically eliminate Permanent Establishment (PE) or other tax considerations.
The potential tax implications depend on factors such as the activities performed by India-based employees and how the company’s India operations are structured.
For example, companies should carefully evaluate situations where employees may have authority to negotiate or conclude contracts, represent the business commercially or perform activities that could contribute to a taxable presence.
Companies should obtain professional tax advice for their specific operating model.
An EOR can support the employment structure, but it should not be treated as a blanket solution for every tax or corporate-structure issue.
Can You Start With an EOR and Establish an Indian Entity Later?
Yes.
An EOR does not necessarily have to be the company’s permanent workforce model.
A company may initially use an EOR while it:
- Tests the Indian market
- Builds its initial technology team
- Evaluates hiring requirements
- Develops its India operating strategy
- Determines whether establishing an Indian entity makes sense
If the company later establishes its own Indian entity, the workforce transition can be planned around the applicable employment, payroll, benefits, documentation and compliance requirements.
This can provide companies with flexibility while their India operations develop.
When Should a Technology Company Consider an India EOR?
An EOR may be worth evaluating when a company wants to hire employees in India but does not yet want to establish its own employment infrastructure.
It can be particularly relevant when the company:
- Wants to hire its first employee in India
- Needs to build a small technology team quickly
- Is testing the Indian market
- Wants to expand engineering capacity
- Needs DevOps, cloud or cybersecurity talent
- Wants to establish an India technology team before creating a local entity
- Needs support with payroll and employment administration
The right approach depends on the company’s workforce plans, business activities and long-term India strategy.
Build Your India Technology Team Without Building the Employment Infrastructure First
Hiring technology professionals in India requires both access to talent and a structured approach to employment administration.
An India EOR can help international technology companies establish an India workforce while retaining control over technical hiring, projects, performance and day-to-day work.
Akross provides India EOR support covering employment administration, payroll, onboarding, statutory processes, HR administration and workforce support for technology companies.
If your company is planning to hire software engineers, DevOps professionals, cloud engineers, cybersecurity specialists, QA professionals, data specialists or other technology employees in India, explore Akross’s India EOR solution for IT and technology companies.
Ready to build your India technology team?
Speak with Akross about your hiring requirements and India workforce plans.
Frequently Asked Questions
Can I hire IT employees in India without setting up an Indian company?
Yes. An eligible employee can be employed through an India EOR structure, allowing an international company to build an India-based workforce without immediately establishing its own Indian entity.
Can my company manage the IT employee directly?
Yes. Your company can manage the employee's projects, technical responsibilities, performance expectations and day-to-day work while the EOR manages the agreed employment administration.
Can an EOR hire software developers in India?
An EOR can support employment for eligible technology roles, including software developers, QA engineers, DevOps professionals, cloud engineers, cybersecurity specialists, data professionals and technical support staff.
Who manages payroll for India-based IT employees?
Under an EOR arrangement, the EOR manages the agreed payroll administration and applicable statutory processes.
Can an EOR support IP and confidentiality requirements?
Employment documentation can include appropriate intellectual property and confidentiality provisions based on the agreed employment arrangement and the company's requirements.
Does an India EOR eliminate Permanent Establishment risk?
No. An EOR does not automatically eliminate PE or other tax exposure. Companies should evaluate their specific activities and operating structure with appropriate professional advisers.
Can employees later move to our own Indian entity?
Potentially, yes. If the company establishes its own Indian entity later, the workforce transition can be planned based on applicable employment, payroll, benefits, documentation and compliance requirements.
What technology roles can we hire in India?
Technology companies can use an EOR structure for a range of eligible roles, including software engineering, DevOps, cloud, cybersecurity, QA, data, AI, IT infrastructure, product and technical support.
Final Thoughts
India can provide international technology companies with access to a broad technology workforce, but successful hiring requires more than recruiting candidates.
Companies need an employment structure that addresses payroll, documentation, statutory requirements, onboarding, employee administration and ongoing workforce support.
An India EOR can provide that employment infrastructure while allowing the technology company to remain focused on its products, engineering teams and business operations.
Ready to Build Your IT Team in India?
Hire and manage employees in India through a compliant Employer of Record solution. Start with one employee or scale your India workforce as your business grows.
