Offshore Operations 15 August 2023

By Unient Team

It’s hard to imagine now, in our increasingly connected and globalized world, but there was a time that overseas expansion was something only huge enterprises can aspire for. It was a tedious, complex, time-consuming and extremely expensive undertaking that a smaller operation would not have the resources to pursue.

However technological developments and economic trends in the last decades have relaxed, if not entirely removed, financial and regulatory barriers to offshore expansion. In fact, there has never been an easier time for startups or smaller operations to enter foreign markets—with the right support, that is.

When it comes to offshore expansion, choosing the right partner is one of the most crucial pieces of the puzzle for any business, regardless of size or industry. Because opening an office overseas or hiring cross-border employees still entails jumping through various legal hoops. In addition to all the necessary permits, the business might also need to comply with local labour laws when it comes to hiring and compensation. The process requires a lot of paperwork and legwork.

There are services dedicated to helping businesses rapidly and compliantly set up their offshore offices or subsidiaries and hire staff, as well as provide the necessary organisational support and other operational assistance they might require.

Below, we will share two offshore expansion models that offer different types and levels of engagement: Employer of Record and Managed Resources. Keep reading to determine which model is right for your business.

Employer of Record

An Employer of Record (EoR) is a third-party business that assumes specific business functions for a client company. Specifically, the EoR takes on the core legal and labour compliance responsibilities of a local employer. For a business looking to set up an overseas subsidiary without the hassle of actually setting up a separate company for the chosen location, an EOR is a quick and cost-effective option.

An EoR will also be responsible for handling end-to-end human resources functions that would typically be handled by internal teams. This includes recruitment, hiring, onboarding, payroll, employee engagement, benefits, and termination.


International Expansion Made Simple

EoR makes taking your business global not only possible but it’s also easier. Most countries require a registered local entity or subsidiary in place for a business to be able to set up shop on their shores. Your EoR provider acts as your company’s local entity. There is no need to incorporate locally and no need to deploy an international team to set up an office.

A business can start hiring and onboarding employees within days of signing with an EoR provider. All offshore hires of the business will be compliant with local laws and managed efficiently by a highly experienced HR team.

Competitive HR Packages

For smaller entities, it can be difficult to offer a competitive employee compensation

and benefits programme. Employee insurance, pension plans and the like are usually only accessible for higher headcounts. Good EoR providers offer a customisable level of service, which will include options for compensation, benefits and other recruitment incentives you wish to offer. This allows smaller businesses to compete with the employment packages offered by larger businesses.

Your Employees, Your Culture

One of the best things about working with an EoR is that you get many of the benefits of outsourcing to an offshore location without ceding control to the extent that outsourcing typically requires. Offshore hires remain to be the employees of the client business and the client business may run their offshore office based on their operational standards. There is greater continuity in service, culture and the bottom line.

Managed Resources

Managed Resources is a service provided by a third-party business to help ease the operational burden of an organisation by taking on non-core business systems. Aside from staff augmentation, it gives the client business access to a highly trained group of professionals with expertise in specific business areas.



Developing talents internally and setting up a new department are considerable investments for an organisation. By opting to work with a Managed Resources provider, a business can focus its efforts and resources on high-value processes and profit-generating activities while entrusting non-critical but necessary work, such as accounting or payroll management, to trained professionals.


Businesses that have seasonal staffing needs or a job requirement that they do not possess the competencies or technology for will find working with a Managed Resources provider extremely useful. They can quickly tap a dedicated team that will smoothly integrate into pre-existing structures for the duration they require with minimal impact on their productivity.

Access to a Global Talent Pool

Through a Managed Resources provider, businesses may set up a dedicated offshore team of experts to support and unburden their internal team and operations. They will get a chance to work with best-in-industry professionals that may otherwise not have been cost-efficient to hire internally and onshore.

Is Your Business Ready for Global Expansion?

Managed Resources and Employer of Record are offshoring expansion options that offer different types and levels of engagement, but both are extremely accessible and helpful for businesses with designs for expansion. Small to medium-sized businesses, early-stage startups or large enterprises looking to enter foreign markets can benefit from either model.

Still not sure which model is right for your business? Unient is here to help. Send us a message to schedule a free consultation with one of our executives. Follow us on Social Media to get updates for new published content about outsourcing, offshoring, management and leadership and many more.