The IEC Group names the Top 25 Global EOR Providers globally
The emerging EOR market is growing to 9.8 Billion US Dollars by 2028
Employer of Record (EOR) services should be an essential component of every Chief Human Resources Officer's (CHRO) service portfolio for companies aiming to achieve globalization. Luis Praxmarer, IEC CEO.
As businesses face the increasing demands of globalization, agility and flexibility have become key factors across various industries. In addition, the challenging staffing market has amplified the need for staffing flexibility. As a result, global employer of record (EOR) services have become crucial in facilitating expansion plans and business roadmaps in numerous enterprise industry verticals.
The EOR market experienced a remarkable surge during the pandemic and continues to exhibit a strong growth rate in the double digits. Luis Praxmarer, the CEO of The IEC Group, emphasizes the outstanding service quality and high employee retention rate already demonstrated by the nascent and dynamic EOR market.
While North America (36%) still accounts for the largest market, EMEA (29%) has increased strongly due to the geopolitical instability with the Ukraine / Russia situation and growth in Africa. APAC (26%) and upcoming LATAM (9%) are accounting for the remaining percentages. Ash Pal, IEC Partner & Practitioner,“EMEA EOR suppliers have performed robustly in response to geopolitical instability in Russia and Ukraine and growing demand in the Middle East and Africa”.
Those EOR suppliers are increasingly being trusted for mission-critical work shows how the market is maturing to focus on delivering the right resources, at the right quality, at the right time, in the right place. The old race to the bottom focused on lowest cost labor arbitrage and any quality will do is becoming an increasingly doomed strategy pursued by legacy players in the market.
The 2023 Global EOR Dynamic Map™ Study identified over 800 EOR companies, invited 102 companies for the detailed analysis, and awarded the top 25 providers as IEC Elite Members. Competitive positioning is an essential criterion for thousands of enterprises in their decision-making process. In addition, many financial investors use it for information on the players’ competitiveness in the market. While some charts deliver useful overviews, they quickly hit their limitations when it comes to client-specific competitive ratings. IEC Dynamic Map ™ has been designed to provide the best competitive positioning chart in the industry. It provides many different views and customer specific analysis.
IEC Dynamic Map™ is a provider comparison methodology empowered by IEC practitioners’ experience, research, and client feedback. Research reports provide independent vendor evaluations and enterprise buying behavior clusters. Provider positioning is based on a neutral and independent research and evaluation process with free-of-charge participation.
The IEC Group, a leading global technology research and advisory firm, focused in the study on one axes of the quadrant on the business services and strategy of the companies and on the other axes on the customer and user experience as well as the business value delivered.
Within this report The IEC Group analyses many global EOR service providers based on a 20 x 20 balanced matrix with direct inputs via questionnaires and briefings covering all of the topics mentioned in this executive summary.
This results in a granular output of data which both algorithms and expert analysts work upon to produce the IEC Dynamic Map™ graphic which serves as an easy visual aid in placement of the relevant providers in comparison to the market, deliverables, and each other.
IEC Dynamic Map™ Global EOR is based on an average customer environment. “Customer specific EOR quadrants are going to be based on the results of a workshop identifying the best match based on the individual customer situation and priorities and are ideal to generate a quick short list of suppliers”, says Kenn Walters, IEC Practitioner & Partner and responsible for the study.
Our study revealed that the Employer of Record industry has several pioneers, including G-P (g-p.com), Atlas (atlashxm.com), and CXC Global (cxcglobal.com) who are widely recognized as leaders in the field. G-P is a powerhouse and clear leader in the Global EOR space. Atlas is a technologically advanced leader in direct EOR at any scale, globally. CXC Global delivers deep experience and comprehensive capabilities in EOR.
However, we also identified a significant number of up-and-coming startups and companies that are rapidly gaining momentum in this space. These emerging players are demonstrating innovative approaches and bringing fresh perspectives to the industry, which is helping to drive growth and reshape the landscape. With a focus on agility, technology, and customer-centric solutions, these companies are poised to make a significant impact in the Employer of Record and Human Resource outsourcing market in the coming years.
The accelerating growth of globalization across industry sectors is drawing many companies, especially emerging new companies into new countries or areas of operation. This leaves many enterprises seeking assistance in understanding and delivering legal compliance with HR, personal data, and payroll regulations globally, especially in countries where the enterprise has no existing presence.
Many enterprise executives are now seeking effective, global technology platform-driven EOR organizations who are legally compliant in target countries and who can help them with their challenges in staffing, as well as in accelerating the business expansion plans while sinking the costs of doing so. An EOR assumes all legal responsibility for the people who work for the enterprise.
In addition to in-country experts and legal staff, many EOR service providers have developed tools, dashboards, and country-specific compliance databases that immediately provide local HR, tax, and legal requirements, regulations, and recommendations.
These solutions enable enterprises to eliminate or significantly reduce the costs, effort, and risks of establishing business entities and operations abroad.
Looking to the future, the global Employer of Record (EOR) services market is expected to see continued evolution and growth, driven by advanced platforms and enabling technologies that enable next-generation automation-assisted solutions.
We are excited to announce that The IEC Group will be hosting a Webcast on June 14th at 16:00 GMT to share the findings of our latest study.
To learn more about the event and register your attendance, simply click on the link provided. We look forward to seeing you there!
About the Authors
Study Responsible: Dr. Kenn D. Walters, Ash Pal, Luis Praxmarer
Review Board: Matt Walters, Charlie McGinn.