
Staffing across borders is becoming a priority for businesses looking to expand efficiently. Italian firms, in particular, are increasingly interested in hiring full-time employees from India’s capital, Delhi. This interest is driven by access to skilled professionals in areas such as IT, design, operations, and customer support. However, employing full-time staff in another country involves administrative and legal hurdles—especially around payroll, taxation, and employment contracts.
This is where Employer of Record (EOR) service providers based in India come in. EOR partners help foreign companies hire talent in India without having to set up a legal entity. They manage employment contracts, local compliance, payroll processing, tax reporting, and statutory benefits. For Italian businesses unfamiliar with Indian labor regulations, an EOR can reduce risk while providing access to a competitive workforce.
Delhi offers a wide talent pool across tech, business operations, and administrative roles. According to 2024 employment market studies, Delhi NCR accounts for over 18% of India’s organized sector employment. The region is also home to over 100,000 professionals in tech support, back-office processing, and customer service roles.
Italian firms have been turning to Delhi-based employees for both cost advantages and the ability to work with English-speaking, degree-qualified professionals. The timezone overlap allows for flexible communication with Europe, while the city’s urban infrastructure supports reliable remote and hybrid work setups.
One Rome-based architectural design firm, for instance, hired three 3D rendering specialists in Delhi for long-term roles. Rather than navigate Indian contract law on their own, they worked with an EOR partner who drafted employment agreements, arranged local insurance coverage, and processed monthly payroll in INR. The firm retained full control over day-to-day work while the EOR handled administrative formalities.
Indian employment law involves multiple state and central-level regulations. These include Provident Fund contributions, Employee State Insurance, gratuity payments, professional taxes, and income tax withholdings. For foreign employers, staying compliant with Indian labor codes can be complex without local expertise.
An EOR partner acts as the legal employer on paper while allowing the Italian firm to manage the employee’s work directly. This structure reduces exposure to regulatory violations while keeping the onboarding process fast. According to recent cross-border HR reports, the average time to hire through an EOR in India is 10–14 days, compared to 2–3 months for entity setup.
For example, a Milan-based marketing agency expanded its content team in Delhi. They onboarded two content strategists through an Indian EOR who handled everything from employment contracts in compliance with Indian labor laws to payroll deductions aligned with local tax rules. The employees received regular payslips, benefits, and grievance support through the EOR while remaining operationally aligned with the Milan office.
Managing payroll in India requires accurate calculation of net salary, income tax, and mandatory deductions. There are also statutory filings such as TDS (Tax Deducted at Source) returns, PF filings, and monthly ESI contributions. These need to be processed on time to avoid penalties.
EOR firms take over this responsibility by running compliant payroll cycles on behalf of the client. They ensure that all employee earnings and deductions follow Indian norms. Contracts are issued under Indian jurisdiction, clearly outlining notice periods, work terms, and termination clauses as required by Indian employment statutes.
A Florence-based e-commerce firm recently built a small product support team in Delhi. Through their Indian EOR partner, each employee was provided with a formal letter of appointment, was enrolled in statutory schemes, and began receiving monthly payslips and benefits within their first payroll cycle. The firm didn’t have to deal with foreign exchange conversion, tax complexities, or cross-border banking issues.
Expert insight from HR specialists confirms that EORs with in-country payroll engines are more efficient in dealing with last-minute adjustments, bonuses, and reimbursements—something foreign employers find hard to coordinate directly.
Italian companies choosing EOR services in India benefit from:
Faster hiring cycles: No need to establish a branch office or local entity
Full compliance: Contracts, payroll, and benefits aligned with Indian labor codes
Reduced overhead: All HR admin is outsourced to the local partner
Cost savings: Indian compensation benchmarks are 40-60% lower than EU equivalents in many roles
Local guidance: EOR partners advise on employment law, disputes, or termination cases
A recent hiring report suggests that European SMEs hiring through Indian EORs saw a 25% reduction in administrative costs compared to in-house international hiring setups.
Italian firms looking to hire full-time staff in Delhi can rely on EOR services to manage employment contracts, payroll, and regulatory compliance. With reduced administrative risk and a simplified hiring model, EOR partners in India help foreign businesses tap into Delhi’s skilled workforce while focusing on core operations.