Decision Comparison
Agency Recruitment vs Direct Hiring
Comparison of using a licensed recruitment agency versus hiring workers directly.
Summary Recommendation
Licensed agency recruitment is recommended for employers without in-house international HR capability.
Licensed Agency
First-time overseas hiring, bulk recruitment, compliance-focused companies
Direct Hiring
Companies with Indian subsidiary, established overseas HR team
Factor-by-Factor Comparison
| Factor | Licensed Agency | Direct Hiring |
|---|---|---|
compliance risk Legal and regulatory risk exposure for the employer | Low Agency handles regulatory compliance 9/10 | High Employer assumes all legal risk 3/10 |
process efficiency Speed and smoothness of the hiring process | High Established processes and relationships 8/10 | Low Learning curve and delays 3/10 |
candidate quality Quality and vetting of candidates | Vetted Pre-screened and trade-tested 8/10 | Variable No standardized vetting 5/10 |
cost Total recruitment cost structure | Service Fee One-time recruitment fee per worker 6/10 | Lower Upfront No agency fee but hidden costs 7/10 |
documentation Handling of paperwork and government approvals | Full Service Agency handles all paperwork 9/10 | Self-Managed Employer handles all paperwork 3/10 |
accountability Responsibility for worker issues post-deployment | Shared Agency support during warranty period 7/10 | Full All responsibility on employer 5/10 |
replacement Handling of early attrition or performance issues | Guaranteed Free replacement within warranty 9/10 | None Restart entire process 2/10 |
| Total Score | 56/70 | 28/70 |
What a Licensed Agency Handles
Sourcing & Screening
- • Database access (50,000+ candidates)
- • Resume screening and shortlisting
- • Background verification
- • Reference checks
Assessment
- • Trade test coordination
- • Video interview setup
- • Skill verification
- • Final selection support
Documentation
- • GAMCA medical scheduling
- • Document attestation
- • Visa application
- • eMigrate registration
Deployment
- • Pre-departure orientation
- • Flight booking
- • Airport coordination
- • 90-day replacement warranty
What Direct Hiring Requires
Important Notice
Direct hiring from India requires navigation of multiple government systems and compliance with both Indian emigration law and destination country labor regulations. Companies should have dedicated international HR resources.
Indian Side
- • Recruitment license or agency POA
- • eMigrate employer registration
- • GAMCA center coordination
- • MEA attestation processing
- • POE emigration clearance
Destination Side
- • Embassy coordination
- • Visa application processing
- • Labor ministry compliance
- • Contract registration
- • Work permit arrangements
Ongoing
- • Performance issue resolution
- • Worker welfare coordination
- • Emergency support
- • Replacement sourcing
- • Repatriation if needed
Frequently Asked Questions
Is it legal to hire overseas workers directly without an agency?
Yes, direct hiring is legal but requires the employer to navigate eMigrate registration, GAMCA coordination, embassy processes, and Indian POE (Protector of Emigrants) clearances independently. This is complex for companies without prior experience.
What does a recruitment agency service fee cover?
Agency fees typically cover: candidate sourcing and screening, trade testing coordination, document collection and verification, GAMCA appointment scheduling, visa application processing, eMigrate registration, pre-departure orientation, and airport coordination.
What is the typical agency replacement guarantee?
Licensed agencies typically offer 90-day (3-month) replacement guarantee. If a worker leaves or is terminated for non-performance within this period, the agency provides a replacement at no additional recruitment fee. Employer pays only visa and travel costs.
Can large companies with HR departments hire directly?
Yes, companies with Indian subsidiaries or established international HR teams can hire directly. However, even large companies often prefer agency partnerships for compliance assurance, local candidate access, and replacement guarantees.
Work with a Licensed Agency
Mahad Manpower is registered with India eMigrate and licensed for Gulf countries.
Contact Employer Services