The IEC Group, a leading global technology research and advisory firm, recently conducted a study of 800 global Employer of Record (EOR) providers and awarded the Top 25 companies in the industry. This is due to the rapidly expanding globalization requirements of businesses, the skill shortage, and the need for staffing flexibility.
CEO of The IEC Group, Luis Praxmarer, emphasizes the importance of EOR services and their excellent service quality and high retention rate of employees. The EOR market has grown significantly during the pandemic and is expected to reach $9.8 billion USD by 2028. North America (36%), EMEA (29%), APAC (26%), and LATAM (9%) are the largest markets, with EMEA increasing due to geopolitical instability in Russia and Ukraine, and growth in Africa.
The IEC Group has identified a number of pioneers in the EOR services market, including G-P, Atlas, and CXC Global, who are widely recognized as leaders in the field. At the same time, many up-and-coming startups and companies are bringing fresh perspectives to the industry, with a focus on agility, technology, and customer-centric solutions.
CHROs (Chief Human Resource Officer) must stay up-to-date with changing laws and regulations to ensure compliance with labor laws, health and safety regulations, and other employment-related legislation. EOR providers are experts in taking over these tasks. The purchasing decision for EOR suppliers is often tactical and local, and CHROs need to develop or facilitate EOR decision processes that work at the speed of the business demand.
Multi-national firms remain the primary target for EOR services, with small to mid-market enterprises (SME) being the driving enterprise force behind the overall EOR market expansion. 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.
The IEC Group recently hosted a webcast to share the findings of their latest study. This event highlighted the importance of EOR services and their role in businesses striving for global expansion. The future outlook for the EOR services market looks very promising, with continued growth and innovation on the horizon.
The IEC Group is a global business research and advisory firm, specializing in globalization strategy, business transformation, operation excellence, merger & acquisition, human resource management, recruiting, compliance, legal, tax, and accounting. Founded in 2022, The IEC Group consists of a team of highly experienced executive practitioners and partners with experience working with technology leadership teams across virtually every industry and geography.
Derick is an experienced reporter having held multiple senior roles for large publishers across Europe. Specialist subjects include small business and financial emerging markets.