HR Outsourcing for Startups & Small Business: Top 7 Firms

Ani Gasparyan

Last updated on July 12, 2025 | 17 min read

OutsourcingRecruitmentStartupRanking

• Human resources outsourcing enables access to top talent, streamlines recruitment processes, and reduces overhead costs.
• This article explores the top 7 HR outsourcing firms that help startups scale efficiently while minimizing hiring risks.

Finding the right talent is one of the biggest challenges for startups and small businesses. According to recent studies, 23% of startups fail due to team-related issues, including hiring difficulties. With limited resources, time constraints, and a need for specialized skills, in-house hiring can be overwhelming. HR outsourcing firms provide much-needed support by handling recruitment, payroll management, compliance, and more, enabling businesses to focus on growth.

“Outsourcing HR functions is becoming increasingly popular, with 60% of businesses expanding their reliance on external firms for HR tasks.”

Organizations often report notable cost savings on HR administration through HR Software-as-a-Service (SaaS) platforms. Most reduce expenses by at least 10%, while some achieve savings of 40% or more. By leveraging HR outsourcing, startups can access top-tier talent, streamline administrative tasks, and ensure legal compliance without the high costs of an in-house HR team. For many startups, partnering with outsourcing providers also speeds up hiring and lightens the administrative load.

In this article, we explore 7 leading HR outsourcing firms that offer tailored and cost-effective solutions. These firms assist startups and small businesses in expanding their teams effectively while minimizing hiring risks, whether through comprehensive HR management or specialized recruitment services.

Here are our top recommendations:

1. DevsData LLC – Top Pick: Best overall
2. Milestone: Best for customized HR strategies
3. Remunance: Best for businesses expanding to India
4. Jumpstart HR: Best for risk management

Foundational tools, resources, and tips for small business success

Running a small business or early-stage startup often means wearing multiple hats. Founders are typically not only delivering the core product or service but also juggling administrative work, HR tasks, and sometimes even marketing and sales. This operational burden can quickly become overwhelming, especially without the right support systems in place.

Fortunately, today’s digital tools make it easier to streamline and delegate many of these functions. Website builders like Webflow and Framer enable small business owners to launch professional-looking sites without requiring coding skills. For hiring and team management, modern applicant tracking systems (ATS) such as Breezy, TeamTailor, Ashby, and GreenHouse offer flexible, startup-friendly solutions.

To build a strong foundation, many founders turn to books like The E-Myth Revisited by Michael E. Gerber and The Millionaire Fastlane by MJ DeMarco, both of which offer innovative strategies for growth and systemization. Podcasts such as the All-In Podcast, How I Built This, and Indie Hackers provide ongoing insights and real-world experiences from other entrepreneurs.

AI presents another significant opportunity, enabling small businesses to move faster than larger companies by automating repetitive tasks and responding quickly to shifting market needs. On the hiring front, one of the most valuable early additions to a lean team is a strong executive assistant (or founder’s associate), who can help founders focus on high-impact priorities.

Beyond internal improvements, startups can take advantage of resources like Online Startup Accelerator programs and explore fundraising opportunities through curated VC lists by region, available on platforms like Crunchbase, AngelList, and VCGuide.

1. DevsData LLC – Top Pick: Best overall

   

   Website: www.devsdata.com
   Team size: ~60 employees
   Founded: 2016
   Headquarters: Brooklyn, NY, and Warsaw, Poland

   DevsData LLC is a trusted partner in HR outsourcing for startups and small businesses. With over 8 years of experience, the firm has earned a strong reputation for providing customized workforce solutions. Their HR outsourcing services cover a range of core tasks, including recruitment management, payroll processing, benefits administration, compliance management, employee relations, and performance management. As a government-licensed provider, DevsData LLC ensures strict compliance with industry regulations, helping businesses streamline their HR operations while staying compliant with the law.

   What makes DevsData LLC particularly well-suited for early-stage ventures is their hands-on experience with over 100 projects for more than 80 clients, ranging from fast-growing startups to small businesses. Notable startup collaborations include:

   • GlossGenius, Inc. – New York-based beauty-tech company
   • Wellbee – Polish mental health and online therapy platform. DevsData LLC supported the company from the MVP stage to a successful exit after 4.5 years.
   • dotData, Inc. – San Francisco-based data science automation platform
   • Memcare AS – Norwegian SaaS startup in the funeral-tech space
   • Hypathos GmbH – German startup focused on AI-based document automation
   • Fourth Wall, Inc. – Creator commerce platform
   • Cookie3 – Web3 analytics and crypto marketing platform
   • Mend.io – Application security platform, originally founded in Israel

   On the small business front, DevsData LLC has worked with companies such as Sparkl Reusables and Orange Charger, LLC from San Francisco, Lina.co from New York (supporting Webflow development), Fruitful Yield, Talaera (American e-learning SaaS Platform), and Chad AI, where they led the recruitment for a senior full-stack developer. In Canada, they partnered with Ontopical, a startup helping clients find government contracts before RFPs, providing both IT staffing and project management talent. Their ability to support both technical hiring and business operations has made them a go-to partner for agile teams.

   Beyond HR outsourcing, DevsData LLC offers a full range of services to support startups and small businesses:

   • IT outsourcing, including web and mobile app development, whether for MVPs or scaling digital platforms
   • Marketing support, such as SEO and international SEO, ChatGPT ranking optimization, and social media services (Instagram, TikTok)
   • Recruitment of administrative talent, like executive assistants or office managers, to lighten the operational load
   • Hiring individual software developers, including part-time or flexible arrangements
   • Building full technical teams, from software engineers to data scientists or other niche technical roles, tailored to your growth plans

   

   With a database of over 65,000 pre-screened professionals, DevsData LLC swiftly connects businesses with qualified talent. Their team of 40 expert recruiters, based in Europe and the US, is recognized for its professional and communication skills, which are essential in conducting thorough 90-minute interviews for rigorous candidate assessments. Operating on a success-based fee model, DevsData LLC charges only upon successful placement and offers a guarantee period, during which replacement is provided at no extra cost, if necessary.

   Additionally, DevsData LLC provides employer of record (EoR) services, which offer a comprehensive solution for startups and small businesses looking to hire talent internationally without establishing a local entity. As an EoR, DevsData LLC becomes the legal employer for your remote employees, handling all HR functions such as payroll, benefits, compliance, and taxes. This enables businesses to expand their teams globally without navigating complex local employment laws.

   In one project, DevsData LLC worked with a London-based financial firm specializing in algorithmic trading to build a high-performing engineering team. The recruitment process was intensive and focused on identifying candidates with strong algorithmic thinking and experience in real-time systems.

   “While the company initially planned to hire just one developer, the strong quality of candidates and smooth cooperation led them to expand the team to 4 engineers. As a result, they chose to establish a new engineering office in Poland to support their growing technical operations.”

   Key features:

   • Over 8 years of experience in HR outsourcing, with a global presence in Europe, North America, and Latin America.
   • Partners with hedge funds, multinational corporations, and leading startups across countries like the US and Israel.
   • Maintains a perfect 5/5 client satisfaction rating on Clutch and GoodFirms, backed by positive public reviews.

   Discover how DevsData LLC can support your HR outsourcing needs by visiting www.devsdata.com or contacting them at general@devsdata.com.

2. Milestone: Best for customized HR strategies

   

   Website: www.milestone.inc
   Team size: ~55 employees
   Founded: 2020
   Headquarters: Carmel, Indiana

   Milestone is a well-established HR outsourcing provider known for offering scalable, tailored solutions to small businesses. With years of experience, they help companies navigate the complexities of HR management, including compliance, employee benefits, and recruitment. Their team works closely with clients to customize HR strategies that align with business goals, enabling startups to focus on growth without getting bogged down by administrative tasks. Milestone’s dedicated support and industry expertise empower businesses to build strong, compliant, and efficient HR frameworks.

   Key features:

   • Demonstrates a unified approach to accounting and HR services that creates synergy across your business.
   • Dedicated to providing customized HR strategies, assisting with state and local registrations, and guiding businesses through federal, state, and local requirements.
   • Offers monthly HR support, handling day-to-day administrative complexities to allow businesses to focus on growth.

3. Remunance: Best for businesses expanding to India

   

   Website: www.remunance.com
   Team size: ~120 employees
   Founded: 2004
   Headquarters: Pune, India

   Remunance offers comprehensive HR outsourcing solutions, specializing in EoR and Professional Employer Organization (PEO) services. They provide talent acquisition, HR management, regulatory compliance, and infrastructural support, helping international companies expand into India without setting up a legal entity. Their services particularly benefit global startups and SMEs looking to establish a presence in India. With expertise in local labor laws and regulations, Remunance enables businesses to quickly scale operations, manage workforce needs, and remain compliant, all while reducing the administrative burden.

   Key features:

   • Ensures quick response and delivery with prompt service, providing solutions within 2 working days or less.
   • Delivers 360° support services including recruitment, onboarding, IT, infrastructure support, and compliance management.
   • Serves a global clientele with clients spread across 16 countries, demonstrating a broad international reach.

4. Jumpstart HR: Best for risk management

   

   Website: www.jumpstart-hr.com
   Team size: ~10 employees
   Founded: 2011
   Headquarters: Columbia, Maryland

   Jumpstart HR focuses on providing startup businesses with accessible, cost-effective HR services. With a focus on compliance, employee relations, and strategic workforce planning, they provide expert guidance to ensure startups meet regulatory requirements and foster positive workplace cultures. Their hands-on approach includes customized employee handbooks, streamlined onboarding processes, and proactive risk management strategies to mitigate legal and operational challenges. Jumpstart HR’s experienced consultants act as an extension of your team, delivering scalable solutions that support rapid growth while enhancing employee engagement and retention. Trusted by early-stage businesses, they empower startups to build robust HR frameworks that drive success without the burden of administrative overhead.

   Key features:

   • Offers flexible HR support subscriptions, providing clients with dedicated HR professionals to assist with various HR tasks and strategic initiatives.
   • Helps small businesses with risk management by conducting engagement surveys to minimize potential HR-related challenges.
   • Certified as a Minority Business Enterprise (MBE) and listed on the NMSDC CENTRAL database since July 2022.

   Do you have software development needs?

   🎧 Schedule a meeting

   After highlighting the top 4 HR outsourcing firms for startups, we will focus on the next 3 well-known companies serving small businesses.

5. A-HR.pro

   

   Website: www.a-hr.pro
   Team size: ~30 employees
   Founded: 2016
   Headquarters: Kyiv, Ukraine

   A-HR.pro is a global HR solutions provider that helps businesses and candidates navigate the world of recruitment and talent management. The company provides a comprehensive range of services tailored to small businesses and beyond, including IT recruitment, executive search, HR consulting, and specialized training for HR professionals and recruiters.

   Their approach combines traditional HR practices with innovative strategies, such as AI-driven candidate matching to streamline hiring, data analytics for workforce planning, and gamified training modules to enhance recruiter skills. These methods enable businesses to optimize recruitment processes, reduce time-to-hire, and build high-performing teams while scaling efficiently. Simultaneously, A-HR.pro supports candidates in finding opportunities for career growth and professional development, offering services like CV preparation, interview coaching, and career counseling.

   Key features:

   • Focuses on HR consulting, training for HR specialists and recruiters, support in financial management, accounting, and legal matters.
   • Leverages experience across various industries, including IT, eCommerce, manufacturing, construction, FMCG, agriculture, healthcare, media, logistics, and finance.
   • Provides training in key areas such as Microsoft Excel, Copywriting, Business Correspondence, and Finance for Non-Financial Managers.

6. The HR Consultants

   

   Website: www.thehrconsultants.co.uk
   Team size: ~10 employees
   Founded: 2019
   Headquarters: Stratford-upon-Avon, United Kingdom

   The HR Consultants provides a comprehensive array of HR outsourcing services, specializing in helping small businesses streamline their human resources processes. Whether it’s developing employee handbooks, managing recruitment, or ensuring legal compliance, they offer expert solutions to improve overall HR operations. In addition to these core services, they offer tailored training and development programs, including a 90-minute training session focused on vital topics. These sessions cover HR and employment law risks, effective communication across virtual boundaries, and adapting to individual working styles within teams.

   Key features:

   • Demonstrates to businesses the benefits of an internal HR department at a fraction of the cost, providing ongoing support tailored to specific needs.
   • Provides flexible, pay-as-you-go HR services for businesses requiring occasional assistance without long-term commitments.
   • Conducts training programs to help SMEs develop productive teams and effective leaders and foster a positive workplace culture.

7. S&K HR Consulting

   

   Website: www.snk.ae
   Team size: ~15 employees
   Founded: 2015
   Headquarters: Dubai, United Arab Emirates

   S&K HR Consulting is known for its practical approach and personalized support in areas such as recruitment, employee benefits, and performance management. They help startups establish effective HR systems that support growth while ensuring compliance.

   Their expertise includes guiding businesses through the procurement, customization, and implementation of HR Information Systems (HRIS) aligned with specific business objectives. For example, they streamline HR processes by setting up HRIS tools, such as automated payroll and applicant tracking systems, which save time and minimize errors. By providing scalable and straightforward solutions, S&K HR Consulting enables small businesses to address people-related challenges, boost employee satisfaction, and establish sustainable HR practices that support long-term success.

   Key features:

   • Offers a comprehensive toolkit with over 80 personalized and legally compliant HR documents, tools, and templates to manage HR functions efficiently.
   • Assists in advertising vacancies, screening candidates, and matching talent to business needs, acting as a talent matchmaker.
   • Provides outsourced HR management services, acting as an extension of the client’s team to handle people-related requirements.

Conclusion

Choosing the right HR outsourcing partner is crucial for startups and small businesses looking to attract top talent while staying focused on growth. A reliable HR firm can streamline HR tasks and ensure access to skilled candidates who align with business goals.

With over 8 years of experience and a track record of completing more than 100 projects for 80+ clients worldwide, DevsData LLC stands out as a leading provider of HR consulting and outsourcing services. DevsData LLC has extensive expertise across healthcare, finance, eCommerce, and technology sectors and provides solutions tailored to the unique challenges of each industry. The company’s offerings range from recruitment to payroll management, compliance, and employee benefits. Each service is designed to streamline HR processes and help reduce operational costs.

They specialize in EoR services, helping businesses manage payroll, taxes, benefits, and compliance, which allows companies to focus on their core objectives while staying fully compliant. Their business process outsourcing (BPO) services optimize resources and enhance operational efficiency. In addition to these core services, DevsData LLC offers strategic HR advisory, tailoring solutions to meet specific hiring needs.

When it comes to recruitment, DevsData LLC excels with a network of 65000 pre-vetted professionals. Their rigorous selection process includes a 90-minute expert-led interview to ensure only the best candidates are selected. Supported by a team of 40 specialized recruiters from Europe and the US, they deliver fast, cost-effective recruitment solutions that significantly enhance hiring productivity.

To learn more, contact DevsData LLC at general@devsdata.com or visit www.devsdata.com.

Any questions or comments? Let me know on Twitter/X.

Discover how IT recruitment and staffing can address your talent needs. Explore trending regions like Poland, Portugal, Mexico, Brazil and more.

🗓️ Schedule a consultation

Read full bio

Ani Gasparyan Senior copywriter and marketer

Ani is a marketing enthusiast and content writer. With 6+ years of expertise in marketing, she succeeded in developing engaging marketing collaterals, including blog articles, social media content, and other promotional materials. With a keen eye for detail and a knack for storytelling, she thrives in crafting compelling content that resonates with the target audience.

Read more about our IT staffing services

OutsourcingRankingRecruitmentStartup




Frequently asked questions (FAQ)