BIG BUSINESS SHIFTS ITS MINDSET
In the past we have talked about startups and their use on contingent staff, particularly when expanding internationally. In addition to this trend, there is another trend being that has developed. Large companies are increasingly turning to start-ups instead of large tech vendors to fill their talent requirements, choosing to engage project-based workers and turning to independent contractors working in the contingent workforce space.
This ‘trend’ or accepted new direction by larger enterprises, started in the last ten years. Historically, larger companies would only usually purchase technology services from equally established, large technology vendors, however in recent years we are seeing a change in mindset, where they are realizing the value of partnering with startups.
STARTUPS AND GLOBAL EXPANSION
Startups have been steadily gaining more attention in the last few years, particularly in the digital arena with the adoption of ‘gig’ type jobs and online platforms becoming more prevalent and mainstream in the global business landscape. Now with technology bringing the world to your fingertips, startups are expanding internationally and taking advantage of global opportunities to cast their nets wider and ensure their global reach and growth.
Setting up operations in a new country or region can be a daunting and often challenging process for startups. There are many aspects of the business to consider, from HR to finance, to employee engagement, onboarding, payroll, back office, establishment of legal entities, risk management, foreign currency, conversions and management, to name a few.
TRANSITION FROM DOMESTIC TO INTERNATIONAL
Becoming a global company is an impressive feat, and not every business that sets out to do it accomplishes the goal. To successfully convert your business from domestic to international, you’ll need to consider a new set of factors that might not necessarily affect a local-only company. For most entrepreneurs, building and maintaining a local customer base is one of the first steps on the road to success. Once they have achieved this goal, some business owners feel they’re ready to take on the next step: expanding internationally.
SUCCESS WITH GLOBAL PARTNERSHIPS
Enterprises now welcome partnerships with start-ups. A major factor for this trend is that rocket ship growth companies utilize a contingent workforce to deliver all facets of a project in an agile strategy. Low overhead and positioning talent where relevant is very attractive as it relates to low-costs for the enterprise, while delivering high-value and no delay on projects. Also, these start-ups are sought-after acquisition targets. Knowing operational models can help during buy-out talks.
HOW CXC CAN HELP
CXC has developed particular expertise in this field and have assisted 1000’s of companies to set up new legal entities and operations in over 65 countries globally for over 29 years and are considered the Trusted Advisor and preferred partner to businesses all around the globe.
Providing a solid base for startups is fundamental, to enable them to focus on their core business execution and growth. CXC provides such a base assisting enterprises to setup operations around the globe and will enter new regions as the needs of our clients determine.
Startups can now launch in new territories with maximum efficiency and pace, underpinned by a strong compliance framework.
The establishment of subsidiary or new entities overseas is often a difficult and cumbersome process. Having a global partner with over 29 years’ experience, who can also provide “in country” HR services as well as employee onboarding services, not only enables startups to focus on their core business, but it also ensures their employees are engaged, are productive and that most importantly, the company is fully compliant with local employment laws.
CXC COMPLIANCE PLATFORM
Our proprietary compliance platform CXC Comply automates the onboarding process for the client and the worker, ensuring correct worker classification and improved workforce management processes for independent contractors, self-employed and freelance workers.
PLATFORM FOR CONTINGENT WORKFORCE
CXC’s cloud-based worker platform MyCXC, enables onboarding, benefits management, employer and employee taxation and compliant payroll in local currency.