Why Global Employment Outsourcing Could Be the Solution

Setting up an office abroad requires many separate and seemingly unrelated factors to be combined and considered together. It is important when a corporation is setting up in an overseas territory for everyone in the business to think holistically.

When looking to expand into a foreign territory, companies should plan at the granular level rather than considering each area separately. When forecasting costs of your global expansion, it’s imperative to consider all costs together and ensure that every eventuality is covered when it comes to potentially hidden financial “surprises.”

This is why many companies choose Global Employment Outsourcing (GEO) where a third party becomes the employer of record. The employer of record model is in most situations the best solution for growing companies seeking to engage talent in new markets quickly, compliantly and flexibly. Companies may choose an employer of record for short-term engagements, as an interim solution while establishing permanently, or as a long-term solution where the business activities do not justify the effort and expense of maintaining a permanent establishment.

When you consider, for example, that the average time it takes to start a new business in Brazil is 102.5 days,6 then it’s clear why some corporations turn to this as an alternative to test a market quickly, with less initial investment and risk, to ensure they are taking the necessary precautions with external experts providing guidance and expertise. Local knowledge and experience go a long way to speeding up these processes while also ensuring compliance with specific regional laws.

An experienced global GEO vendor can be a good partner in your growth strategy, offering complimentary services such as legal entity setup support or recruitment. With the support of an experienced partner, you will be able to approach your new market with a clear idea of the costs and legal requirements of operating locally.

To succeed in the new global marketplace, look for a global vendor that is comfortable working in multiple territories and has local experts already in place, ready to start work on your behalf. The right partner can help you navigate the complexity, and help you locally on the ground to jumpstart your business. Through their experience and understanding of local conditions, your new venture will be in a strong position to succeed, even in today’s competitive international markets.