Deciding Between an Employer of Record (EOR) and Offshore Teams When Going Global
Choosing between an Employer of Record (EOR) and offshore teams is no easy decision. Both have their advantages, and the right choice depends entirely on your specific needs and goals.
An EOR acts as your legal employer in a foreign country, managing compliance, compensation, and employment contracts on your behalf.
When to Choose EOR: If you’re testing the market or expanding at a slow pace, and you lack local knowledge, an EOR provides a seamless entry point. Businesses using EORs claim launching in foreign markets is 40% faster than traditional methods.
Caution: While an EOR simplifies compliance, it strips you of direct control over your team and may disrupt key business processes.
Building an offshore team means you retain control over how your operations function and the environment in which your teams work.
When to Choose Offshore: Offshore teams are ideal for companies requiring autonomy or working on long-term, large-scale projects. With the offshore development market growing 11.4% annually, it’s quickly becoming a backbone of global business operations.
Caution: Offshore teams demand strong leadership and organization. Without it, scaling can feel chaotic.
Both models stand strong on their own. Your choice today should align with both your immediate needs and long-term business objectives. Also, read about why businesses are shifting to offshore teams post-pandemic.
