What does an IBEAN Fractional CHRO cost?

IBEAN's Fractional CHRO engagement costs ₹6–12 lakh/year — 2–4 days per month embedded with your business. A full-time CHRO in India costs ₹20–45 lakh/year in salary plus benefits. For most businesses at ₹5–50Cr revenue, the Fractional model provides equivalent strategic HR leadership at a fraction of the cost.

When does a business need a Fractional CHRO vs HR outsourcing?

If your primary HR problem is administrative — payroll accuracy, PF filings, attendance tracking — HR outsourcing solves it. If your primary HR problem is strategic — high attrition, slow hiring, compensation misalignment, toxic culture, ESOP disputes — you need a Fractional CHRO. Most fast-growing Indian businesses at ₹10–50Cr revenue have both problems simultaneously.

Comparison Guide

Fractional CHRO vs HR Outsourcing India

HR strategy vs HR administration — which does your Indian business need, and why most need both structured correctly?

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The short answer

HR outsourcing handles the administration — payroll, PF, compliance. A Fractional CHRO handles the strategy — reducing attrition, building a hiring process, designing compensation structures, and creating a culture that retains talent. Both are necessary; they serve entirely different functions.

Side-by-side comparison

Dimension	HR Outsourcing / Payroll BPO	Fractional CHRO (IBEAN)
What they provide	HR administration — payroll, compliance, PF/ESIC filings, attendance	HR strategy and leadership — talent acquisition, compensation design, culture, ESOP
Accountability	Process execution and compliance	People outcomes — attrition rate, time-to-hire, engagement scores
Annual cost	₹3–10L/year (HR payroll outsourcing); ₹10–30L (full HR BPO)	₹6–12L/year (IBEAN Fractional CHRO retainer)
Strategic capability	Limited — tactical HR administration	Full CHRO scope — EVP design, ESOP, succession planning, hiring governance
Hiring strategy	Not in scope — processes candidates you source	Designs hiring process, sets standards, reduces time-to-hire
Culture & retention	Not in scope	Onboarding, engagement programmes, manager effectiveness, attrition root cause
Labour law compliance	Core strength — PF, ESIC, gratuity, bonus, PT	Compliance strategy + specialist referral for complex matters

Frequently asked questions

Frequently Asked Questions

Frequently asked questions

5 Questions

HR outsourcing (payroll processing, PF/ESIC administration, attendance management) handles HR compliance and administration — the transaction layer. A Fractional CHRO handles HR strategy — defining your employer value proposition, designing compensation bands, building a structured hiring process, creating an ESOP scheme, and reducing attrition through retention programmes. Most growing businesses need both: outsourcing for the administration, a Fractional CHRO for the strategy.

IBEAN's Fractional CHRO ensures your employment contracts, policies, and HR practices comply with the Shops and Establishments Act, Industrial Disputes Act, Maternity Benefits Act, Prevention of Sexual Harassment (POSH) Act, and applicable state labour laws. For complex matters — PF litigation, ESIC disputes, labour court cases — the Fractional CHRO coordinates with specialist labour law counsel.

Yes — this is the recommended model. Your HR outsourcing firm handles payroll, PF/ESIC, compliance filings, and attendance. Your Fractional CHRO handles strategy, policy, culture, and talent acquisition governance. The Fractional CHRO manages the outsourcing firm's scope on your behalf. This is more cost-effective than a full-time HR head who does both — the Fractional CHRO handles the strategic component at ₹6–12L/year while the outsourcing firm handles administration at ₹3–10L/year.

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