What does EOR stand for?

An EOR, or Employer of Record, is a third-party vendor that legally employs software developers on behalf of a tech company that is expanding abroad. EOR services handle the employment of IT workers, their onboarding/offboarding, monthly payroll, compliance, IP protection, and benefits management. 

What does an Employer of Record (EOR) do?

The best EOR services handle every aspect of local employment – from payroll, taxes, and compliance to onboarding, benefits management, and IP protection. For tech companies, a reliable Employer of Record solution ensures smooth team management without the need to establish a local legal entity. 

Leading EOR service providers like Alcor go beyond standard employment support by combining international Employer of Record services with full-cycle Silicon Valley-grade tech recruitment and 360° operational assistance. This all-in-one EOR solution empowers global tech companies to scale faster, reduce risks, and maintain full compliance in every market.

How can EOR help with global payroll management? 

Payroll management is an integral aspect of expanding into new markets. Adhering to local compensation standards, taxation requirements, handling different currencies and exchange rates, and ensuring data protection are not a walk in the park. That’s why there are global EOR services companies that take the burden of payroll processing off your shoulders. Their professional team of lawyers and accountants, equipped with the latest updates on local laws, will help you avoid any inconsistencies, errors, and legal liability while ensuring timely payouts to your remote software engineers.

What is the difference between PEO, EOR, and GEO?

A Professional Employer Organization, or PEO, is a third-party company that works on co-employment terms, meaning they legally share specific employer responsibilities with you as a client. Usually, PEOs cover most of the HR operations, employment compliance, monthly payroll, and tax payments. Employer of Record (EOR), on the other hand, serves as a legal employer of your programmers, leaving full authority over the development team to you. Unlike PEO, Employer of Record companies lift legal matters and other operational functions off your shoulders. 

Similar to EOR, Global Employment Company (GEO) offers the same services but helps companies hire talent worldwide instead. The downside of GEOs compared to EORs is a lack of industry specialization and limited operational services, which often leads to outsourcing of some tasks, posing potential risks.

What are the responsibilities of an EOR provider?

An Employer of Record provider acts as a legal employer of your software workforce in the country of your expansion. They handle all legal aspects of employing developers and managing business operations. They also run payroll, calculate and pay taxes, manage employee benefits, and handle offboarding. EOR providers like Alcor go beyond EOR, offering full-cycle tech recruitment and operational support – an all-in-one solution that eliminates the need to juggle multiple vendors so you can expand stress-free.

Do my employees work for me or for the EOR provider?

When cooperating with a remote EOR provider like Alcor, you stay in the driver’s seat. You maintain complete control over the hiring and firing of developers, managing their compensation, and communicating with them directly – no middleman involved. From day one, the software developers become an integral part of your company, fully aligned with your culture and practices. 

The only aspect here is that the EOR provider acts as a legal employer of your software developers so that you wouldn’t have to open your own legal entity abroad. Contact us to get more details on this matter! 

What is the cost of EOR services? 

The cost of EOR services varies by EOR company, country of operation, and the range of support provided. Typically, most EOR service providers charge a fixed monthly fee of up to $599 per employee, which includes payroll management, tax administration, and legal compliance.

At Alcor, our Employer of Record services follow a transparent pay-as-you-go model – with no hidden fees, no deposit funds, and full cost control. As your team scales, your EOR solution expenses can decrease with our flexible, scalable approach. This makes Alcor’s Employer of Record services a cost-effective choice for tech companies aiming for long-term, sustainable growth.

How secure is the EOR?

The security of EOR services depends on how effectively the EOR company protects your intellectual property, employee data, and legal compliance. A trustworthy Employer of Record service provider ensures full adherence to local labor laws, GDPR, and international data protection standards, minimizing legal and financial risks. Leading EOR solutions also include airtight IP rights transfer and NDAs in every employment contract, keeping your innovations and proprietary technology fully secure. 

At Alcor, we go beyond standard Employer of Record services – our in-house legal team acts as a compliance shield for your business, ensuring top-tier data protection, IP security, and transparent operations. With our international Employer of Record services, your global expansion stays 100% compliant and secure from hiring to offboarding. 

How do you choose the right global Employer of Record for your business? 

When choosing the right EOR service provider for your global business, several key factors determine how smooth and compliant your expansion will be. 

– Industry expertise: Choose an EOR company with proven experience in the tech sector. The best Employer of Record services understand developer contracts, IP rights, and stock options – ensuring full alignment with the needs of fast-growing IT companies. 

– Legal presence: Make sure your EOR solution has a registered entity in your target country to handle payroll, taxes, and local labor compliance. 

– Compliance protection: A trusted Employer of Record company should have an in-house legal team capable of mitigating risks like worker misclassification and ensuring GDPR/CCPA compliance. 

– Transparent pricing: Look for clear, predictable costs with no hidden fees or buyout charges – reputable EOR platforms typically operate on a flat-fee or percentage-based model. 

– Proven reliability: Review case studies and client feedback to confirm the provider’s track record, responsiveness, and professionalism. 

At Alcor, we unite all these advantages in one comprehensive EOR solution – combining international employer of record services, Silicon Valley–grade tech recruitment, and full operational support to help companies scale globally with confidence and compliance. 

How can I compare Employer of Record service providers?

Not all EOR services are created equal. Most of them serve as HR payment platforms, offering a one-size-fits-all solution with no market segmentation or industry specialization.

To compare Employer of Record service providers, start by shortlisting the most reputable EOR vendors in your target location based on their expertise, client reviews, and service coverage. Then, schedule short discovery calls with each EOR company to see how their solutions align with your specific business needs. 

During these calls, ask them to walk you through: 

• how they ensure legal compliance and IP protection,
• their pricing structure (including potential hidden or buyout fees),
• the level of local legal presence and in-country support,
• and the additional services they offer beyond standard employment, like recruitment, payroll, or operational assistance. 

Finally, request client references or case studies to verify their experience in your industry. By following this process, you’ll be able to identify which EOR solution offers the best balance of compliance, transparency, and value for your business growth. 

How to get started with an EOR?

Firstly, choose a suitable location for your expansion. With the US government raising additional H-1B visa fees – the primary work permit for foreign professionals in the US – to nearly $100,000, international hiring has become far more expensive for American companies. As a result, many American tech companies are now exploring more affordable ways to grow their global teams. The best options for US tech companies are Latin American and Eastern European countries, as they provide access to 2.5+ million developers and offer 2-4 times lower rates.

Then, you need to pick a reliable EOR service provider that specializes in the tech industry, offers flexible pricing, provides 360° in-country support, and provides operational coverage. When you outline the scope of services and sign the agreement, you can start hiring and employing developers abroad.

What are the main drawbacks of a partnership with an EOR provider?

If you choose the wrong EOR provider, you risk facing data security issues. Some providers may not be mindful of their security protocols and privacy regulations, so you need to check if their EOR software is safe and reliable.

Another issue is delayed response time due to inefficiencies in workload management or time zone differences. Make sure they have ongoing customer operations support to swiftly respond to your requests.

One more possible pitfall is unexpected costs from EOR providers, who tend to add extra charges for additional services. Traditional global Employer of Record providers tend to offer a limited scope of operational services and either charge over-the-top fees or simply outsource tasks to a third party, risking your sensitive data. Instead, look for an EOR provider that delivers a comprehensive solution so you can get everything in one place.

EOR vs IT recruitment agency: what’s the difference?

A tech recruitment agency is a service provider that covers the full-cycle hiring of software developers abroad. The spectrum of their services spans from creating candidate profiles and EVPs to applicant screening, job interviewing, and helping with offers/counteroffers. Unlike EOR providers, tech recruitment companies don’t engage in the employment of developers or in legal and compliance activities, and they rarely deal with payroll.

EOR vendors, on their part, cover all operational functions except for tech recruitment. The exception is Alcor, which provides a turnkey solution that includes both tech hiring and EOR support, plus operational coverage.

Is it easier to use an EOR service or create your own entity in another country?

It’s definitely easier to use EOR solutions when expanding abroad. In this case, you won’t have to deal with the time-consuming, costly, and bureaucratic process of opening your legal entity, as your local partner would already have one. Plus, no need to deal with employment contracts, calculation and payment of taxes, monthly payroll, legal and compliance matters, etc. By leveraging Alcor’s EOR solution, you can enjoy peace of mind, knowing that all legal and admin aspects are taken care of. 

What are the top 10 Employer of Record service providers and their alternatives? 

Looking for your next EOR service provider? Here’s a curated overview of the top 10 Employer of Record companies supporting businesses worldwide with compliant hiring, payroll, and global team management through reliable EOR solutions and international Employer of Record services. 

1. Deel – founded in San Francisco (2019), Deel offers EOR, global payroll, contractor, tax, and compliance services in 100+ countries. Known for developer-friendly integrations.
2. Remote – a global EOR platform that handles employment, EOR, payroll, benefits, and compliance globally without requiring you to set up local entities.
3. Papaya Global – a fintech-SaaS company offering global payroll, workforce management, benefits, and EOR in 160+ countries.
4. Rippling – combines EOR services with its HR/IT platform; ideal for tech firms that want HR, devices, and payroll in one stack.
5. Globalization Partners – one of the pioneers in the EOR space, operating in 180+ countries, known for its breadth of legal coverage.
6. Pebl – A US-based EOR vendor offering payroll, compliance, and employment services across 185 countries.
7. Oyster HR – focused on making global employment seamless; supports hiring, onboarding, benefits, and localized compliance.
8. Multiplier – known for cost-effective EOR for startups and scale-ups, with strong presence in emerging markets.
9. RemoFirst – EOR oriented to global hiring, payroll, and compliance, gaining traction among small and mid-size tech companies. 

But note: they don’t focus on the tech industry, which means they overlook important aspects, such as IP rights protection contracts, NDAs, and stock options as a benefit. They also offer a limited range of EOR solutions that exclude full-cycle recruitment and operational services such as hardware procurement, office leasing, and employer branding. As a result, you might end up managing two or three different vendors – a process that brings unnecessary headaches and coordination issues. 

So, are you looking for a better EOR alternative – but with real human cooperation and a true tech focus?

10. Alcor builds software R&D centers and hires remote development teams for US and European tech product companies. Since 2017, we’ve been helping our clients scale in Latin America and Eastern Europe, adding 10 to 100 developers each year.

Our solution is designed only for the tech industry:

• hiring in top tech talent markets,
• benefiting from tax incentives for tech, and
• managing all the necessary contracts for tech (NDAs, IP rights protection agreements, etc.).

Alcor lets clients easily track and manage payroll, benefits, and more via its cloud platform, AlcorOS.

However, unlike other global payment platforms, our clients don’t just get robotic support; they work with a dedicated human Customer Operations manager.

Our solution is 50% more affordable than hiring in the US or tech outsourcing, and we offer custom pricing and volume discounts for even greater savings – no setup or hidden fees.

What services does Alcor provide to clients?

Our all-in-one solution includes tech-focused Employer of Record, full-cycle tech recruitment, and operational support, such as:

• hardware procurement,
• office/coworking leasing,
• insurance provision,
• employer branding,
• HR services,
• remote/office/hybrid strategy support,
• sysadmyn support,
• business/travel visa support,
• stock options & IP agreements – you name it.

We go the extra mile for clients, so they can get everything they need without engaging third parties.

What do you get with our tech-focused EOR service?

First of all, you don’t have to spend 3.5+ months setting up your own legal entity and other infrastructure, such as a bank account and a local team, in a new tech market. We’ll hire talent on your behalf right away.

Secondly, our EOR service covers everything: payroll, compliance, benefits, onboarding, offboarding, and other services. We commit to onboarding talent in 10 business days and provide free offboarding.

Last but not least, you’ll hire top tech talent in top tech markets across Latin America and Eastern Europe – with 3.5+ million IT specialists and fast-growing tech industries.

But our solution is not just another HR payments platform – with us, you get EOR and tech recruitment from scratch, with full operational coverage in one place.

How do you handle compliance, risk, and data protection?

Alcor acts as a legal shield, ensuring 100% compliance with labor laws in the countries of our operations and IP protection. We protect clients from risks related to worker misclassification, social security, and tax obligations while providing GDPR and CCPA solutions. We also provide the background check service for our clients upon request. What is more, Alcor has a mature policy set consisting of publicly available Privacy Policy, Cookie Policy, Terms of Use, Security Policy, and Code of Ethics.

Does Alcor provide a full-cycle tech recruitment service?

Yes. With the help of our 40 in-house tech recruiters and researchers, we hire Silicon Valley-caliber talent from scratch. You can get 5 developers in the first month, 30 in 3 months, and 100 in a year. You get the first CVs of pre-vetted candidates in 5 business days, while one vacancy is typically closed in 2-6 weeks. These are your people from day one who become part of your in-house team and culture, with no buyout process and fees if you later insource.

Which geographies and seniorities can you cover?

We hire top-10% engineers across Mexico, Colombia, Argentina, Chile, Poland, Romania, Ukraine, and Bulgaria – with a focus on senior, lead, and C-level talent. To ensure you get the best talent on the market, we prepare a location strategy and consultation from the start.

What is the quality of your candidates?

To present you with the best candidates, we use an internal database of 253k software engineers and external resources. 80% of the CVs we send to clients are approved; 8 CVs are needed to secure an accepted offer; and 15% of vacancies are closed with the first CV. If a client wants to further improve the quality of the candidate pipeline, we offer an Engineering Manager screening service. As a result, 98.6% of the developers that we hire for clients successfully pass probation.

How long do software developers that Alcor hires stay with clients?

90% of talent that we hire for clients stay with them long-term, while the average tenure of developers is 2.5 years. In case you’re unsatisfied with our hire or vice versa, we offer a 3-month free replacement warranty. What’s more, you can increase the retention rate among your R&D team with the talent retention strategy developed for you by our HR professionals.

Is Alcor’s pricing transparent?

We don’t have setup fees, tricky rate cards, or expensive pricing wrappers. Also, our model doesn’t presuppose regular cost increases with no visible returns. Instead, we have custom pricing for each client, set and revise individual compensations, and give contractual volume discounts.

Who owns the team and assets, and can we insource later?

You own everything from day one – the team and all procured assets (hardware, software, office/coworking arrangements, and related records). You can insource the team at any time for free, with no buyout or lock-in.

Who manages the team day to day?

You do. We act as the official employer of record (EOR) for compliance and payroll, while decision-making, roadmap, and performance management remain on your side.

What documentation and visibility do we get?

You get full transparency – employment contracts, SLAs, and supporting documentation are shared with you from the start.

How is IP handled, and who can access our code?

IP remains 100% yours, protected by compliant IP rights agreements from day one. Alcor does not access your source code, product docs, or other sensitive materials.

Who bears compliance and other employment-related risks?

Alcor bears 100% of the employment and compliance risks in each country by serving as your legal shield for labor, tax, and regulatory matters.

Who are the clients of Alcor?

Our clients include tech product companies from the US and EU – People.ai, BigCommerce, Grammarly, Sift, Ledger, Pindrop, Chartbeat, BIScience, ChargeAfter, Tubular Labs, and Teladoc – from domains like AI/ML, ecommerce, cybersecurity/fraud prevention, crypto/fintech, media & marketing analytics, and digital health.

Does Alcor have any industry awards, or is it featured in ratings?

Alcor has earned top rankings in the IT & business services, HR outsourcing, and legal outsourcing categories on Clutch, become the #1 HR Services Agency on SuperbCompanies, and won The Legal 500 EMEA Awards. We are also featured on Clutch, TrustPilot, G2, and GoodFirms.

What is the team behind Alcor?

We’re a 100+ in-house team with deep bench strength – 40 tech recruiters and 60 back-office specialists across 8 key locations, with 93% CSAT and a 93% Net Promoter Score. Leadership is hands-on and accessible: Founder & CEO – Dmytro Ovcharenko; COO – Viktoriia Keliar; Director of Technical Recruiting – Kassandra Ruiz; Head of Customer Operations – Oksana Petrus; Head of Legal – Oleh Danylchenko. Supporting leaders include Head of People & Culture – Hanna Koval; Head of IT Recruitment – Maryna Panchuk; Senior Legal Adviser (LATAM) – Gilda Orozco; Country Manager, Mexico – Javier Preciado; plus regional recruiting leads in Poland, Romania, and LATAM for on-the-ground execution.

How do you make cross-region collaboration work – overlap windows, English proficiency, and executive availability?

We run teams across the USA, Latin America, and CEE – covering GMT-7, GMT-6, GMT-5, GMT-4, GMT, GMT+1, GMT+2, and more. That footprint lets us engineer reliable overlap windows: typically 5-8 hours within the Americas or Western Europe, and 2-5 hours between US time zones and CEE with modest schedule shifts. English proficiency runs from intermediate to native, with customer-facing roles staffed at advanced/native levels. For leadership accessibility, we align recurring exec-level touchpoints inside overlap windows and keep async updates flowing so decisions don’t wait on the clock.