Employer of Record EOR

How TopSource’s Outsourcing Services Can Help Reduce Your EOR Costs

Global Sales Director
June 28, 2024

International expansion can be a complex and costly endeavor for most businesses. However, outsourcing to a reliable provider of Employer of Record (EOR) services can simplify and streamline the process, minimizing cost as well as risk.  

An EOR provider will employ your international workforce on your behalf, eliminating the need to set up a legal entity in a foreign country. This helps minimize risk by ensuring adherence to local labor laws and tax regulations; and improves compliance by leveraging the years of experience and expertise that the EOR provider brings to the table. 

Advantages of Outsourcing EOR Services 

Outsourcing your overall employment responsibilities involves partnering with a third party such as an EOR service provider, responsible for managing employment contracts, onboarding, local tax compliance, and payroll for your company’s international employees. This global expansion strategy allows your business to operate internationally without establishing a legal entity in each country.  

Let us discuss some of the key benefits of outsourcing EOR services: 

1. Cost Savings Compared to Setting Up a Legal Entity in a Foreign Country 

Establishing a legal entity in a foreign country involves significant financial investment and administrative effort, which is not advisable, especially when you are just at the initial stage of your global expansion journey and have a relatively small team comprising of a few employees to begin with. This could tear the focus away from your business’s revenue-generating operations. The upfront costs of setting up a legal entity may include: 

  • Registration fees 
  • Office space 
  • Legal consultation fees 
  • Hiring local admin staff 
  • Permits and licenses. 
  • Travel expenses. 

Moreover, you must take into account the potential for compliance errors due to lack of local knowledge and experience, which can result in costly fines, lawsuits, and legal penalties. 

By outsourcing EOR to a reliable provider like TopSource, you can bypass most (if not all) of these hefty expenditures. The EOR provider will assume the responsibility of being the legal employer on your behalf, managing compliance with local employment laws and requirements, allowing your company to enter new markets with minimal financial risk. 

2. Cost Savings Through Economies of Scale 

TopSource leverages economies of scale to provide EOR services at a fraction of the cost that individual businesses would incur, when establishing a legal entity abroad. With over 400 staff members across six continents and 180 countries, TopSource serves multiple clients.  

This allows us to spread operational costs over a larger base, thereby reduce the cost per client. This shared services model, leveraging our pre-existing network and infrastructure, means that your business will benefit from reduced pricing on payroll processing, benefits administration, and all other global HR services. 

3. Access to Expert Local Knowledge 

A reliable EOR provider can help you with their expertise as they are well-versed in the intricacies of local employment laws and regulations. Here is how this local knowledge can empower your global expansion:  

  • With experts at your side, there is no need to struggle with deciphering foreign legal codes, to understand complex tax and labor regulations.  
  • Our experts will help you understand the expectations of your international workforce – such as seasonal bonuses, cultural holidays, and appropriate communication styles. This will help you build a productive, loyal, and motivated team of international workers. 
  • These experts can also provide insights into local labor market conditions and trends, helping you make informed hiring decisions and stay competitive. 

This region and country-specific expertise will help you avoid costly mistakes when hiring staff in different countries. 

4. Streamlined Payroll and HR Processes 

TopSource utilizes cutting-edge technology and experienced personnel to provide efficient payroll processes and streamlined HR services. Efficient payroll systems reduce the risk of errors and ensure timely salary disbursement to your international staff.  

Comprehensive HR services, on the other hand, cover tax withholdings, benefits administration, and compliance reporting. This efficiency helps enhance employee satisfaction while reducing operational costs, leading to lower turnover.  

A business that is expanding its operations into several countries simultaneously can benefit from a centralized HR and payroll management system. It will keep you from being overwhelmed by the sheer number of local regulations and administrative tasks, allowing for consistent and compliant management of your global workforce from a single platform. 

Our Outsourcing Services and How They Reduce EOR Costs 

As a leading provider of EOR services, TopSource Worldwide simplifies global expansion by handling international employment and payroll processes for businesses in over 180 countries. 

Some of the specific ways our services can help reduce your employer of record costs are:  

  1. Comprehensive All-in-One Solutions 

TopSource provides an all-inclusive global employment solution – covering compliance, payroll, and HR services. By consolidating these functions into a single service, you can avoid the costs associated with multiple service providers, while ensuring seamless integration across various administrative processes.

  2. Efficient Payroll Systems 

TopSource offers a structured payroll system that ensures accuracy in payroll processing, minimizes errors and delays in salary disbursement, and optimizes tax withholdings and benefits administration. We have a state-of-the-art portal "Portico" which allows self-service for both client and deployee. It also has a live chat function supported by a person not a bot to ensure you get done what you need when you need to. This increases efficiency and provides better turn-around time on any prevailing issues. 

   3. Tailored Solutions 

Unlike traditional EOR providers and their one-size-fits-all approach, TopSource customizes its services to align with the specific requirements of each client. This flexibility ensures that you pay only for the services your business requires, avoiding the extra cost of unnecessary features. Tailored solutions can also be easily moulded to the unique challenges of each location and industry, further reducing employer of record costs. 

  4. Continuous Support and Updates 

Our team of experts provides continuous support for all your international hiring and payroll needs. They stay informed and up to date on changes in labor laws and employment regulations in their respective countries or regions. Additionally, they keep you informed of any relevant changes, proactively helping you make better business decisions while avoiding unexpected compliance issues and legal fees. By staying ahead of regulatory changes, TopSource ensures that you can operate compliantly (and cost-effectively) in multiple international markets. 


TopSource offers a cost-effective alternative with its all-inclusive solution, economies of scale, and flexibility in terms of features and pricing.  

By leveraging our global expertise, you can minimize employer of record costs while reaping all the benefits of a great international workforce and efficient global expansion. Contact us for consultation and cost evaluation to see how we can help your business flourish internationally.  


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Mark Robbins
Mark is the Global Sales Director at Topsource Worldwide. He has been a pioneering figure in the global expansion space since 2013. He is the first salesperson to sell EOR services in Europe, a feat he accomplished in 2013.

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