Global Employment Outsourcing – What You Need to Know

Global employment outsourcing continues to grow despite the lingering pandemic. The industry is estimated to reach $525.2 billion by 2030. Companies outsource functions mainly to reduce costs especially when they start to expand internationally. But aside from this top reason, employers need to realise the many benefits that employment outsourcing services can bring to their business.


What is global employment outsourcing?

A global employment outsourcing (GEO) is a third-party organisation that provides international employment and contracting solutions for multinational businesses. Regardless of the company size and number of employees, a GEO offers multiple employment services functioning as the human resources of their clients to manage recruitment, payroll, employee onboarding and other matters.

Aside from the employment solutions, a GEO is highly skilled and equipped to handle the complexities of dealing with international labour laws and compliance. Here are the top three reasons why companies hire global employment outsourcing services:


Reduce operation costs

The full cost of hiring new employees is quite expensive. Common hiring expenses involve working with a recruitment team, the tools and platform for job posting, background checks and testing services, employee onboarding and training, compensation, etc. At the end of the day, it’s ensuring that employees will have a positive experience that will convert to high employee engagement instead of a turnover.

Many companies prefer outsourcing to a lower-cost economy where they can cut costs in wages to 70%. Outsourcing can also lower the company’s taxes. Some governments provide this incentive to foreign investors depending on which region or location they’re setting up the business.


Increase efficiency

Onshore teams can focus more on important projects while outsourcing time-consuming and repetitive tasks to offshore teams. This can increase the efficiency and productivity of the workforce working around the clock in different locations to meet client satisfaction.


Access to international talent

Companies can leverage the expertise of outsourced teams. Your business can expand to new markets without starting from scratch because you already have an existing team with the required skills and qualifications to work on new systems.



Key advantages of global employment outsourcing

Here are four strong reasons why global employment outsourcing is substantially beneficial for international businesses:


You can build a strategic and competitive advantage

Building a global business requires a strong team that will help reach your targets and objectives. You can maximise global talent with specific skill sets that will support the expansion of your business and put a competitive edge on your company. You can explore new markets in different locations with the confidence that your business can deliver results.


Scale with ease and increase operational flexibility

As new systems and technologies emerge, it can be challenging for companies to adapt and adjust to these new transformations. Your business can tap onshore or offshore teams to research and test these new technologies while still having enough manpower to allocate their focus to other tasks that require their expertise.


Protect your business from compliance risks

Partnering with a GEO will help your business enter any market with confidence because of its expertise and familiarity in international compliance. They can serve as the company’s Employer of Record (EOR) or Professional Employer Organisation, who can legally represent the business and work on your behalf in your chosen country.


You can focus on more important business concerns

Employers and managers can focus on higher-level concerns of running the business successfully without splitting their time and energy worrying about tax issues, recruitment, payroll and other HR matters. 



Global employment outsourcing providers offer custom employment services to accommodate the different and changing needs of their clients. Employer of Record (EOR) and Professional Employer Organisation (PEO) are common employment services that GEO organisations provide for businesses outside their home market. CXC offers both EOR and PEO services.


Differences between EOR and PEO:


Serves as the legal employer and is liable to your full-time employees without setting up a local entity for your business Serves as the co-owner of your business in the country where you operate as a legal entity 
Employment contract is between the EOR and employees  Helps create or draft employment contracts
Minimum requirement of 1-5 employees or some don’t have any minimum requirement at all to provide the service  Requires at least 5-10 workers
Will pay taxes under its ID and ensures worker’s taxes are remitted  Will pay taxes under your company’s tax 
Employee insurance is covered by EOR PEO will only facilitate and manage workers insurance under your name



CXC is a global HR outsourcing organisation with 30 years of experience in workforce management. Our innovative and cost-effective solutions help companies gain a competitive advantage by improving efficiency while reducing risks

Contact CXC today to start enabling your future workforce.