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) for software development do? 

The best EOR services for software developers take care of everything from compliant employment, payroll, and taxes to onboarding, benefits, and IP protection. A reliable Employer of Record for software development companies ensures team management without the need to open a local entity. 

Reliable EOR for developers like Alcor go further – combining Employer of Record services for software developers with full-cycle recruitment and 360° operational support, helping product tech companies scale fast and stay fully compliant. 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 managing global payroll?

Global EOR services companies take the burden of payroll processing off your shoulders by adhering to local compensation standards, meeting taxation requirements, dealing with different currencies and exchange rates, and ensuring data protection. Their 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 payslips and 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. 

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 for software development? 

The cost of EOR services for software developers varies depending on the provider and the level of support included. Most EOR service providers for developers charge a fixed fee of up to $599 per employee per month, covering payroll, legal compliance, and other operational functions. 

At Alcor, our Employer of Record for software development follows a transparent pay-as-you-go model – no hidden fees, no deposits, and full cost control. What’s more, as your development team grows, your EOR for software developers expenses can decrease thanks to our scalable and flexible pricing 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 for software development?

The security of EOR services for software developers depends on how well the EOR company protects your company’s intellectual property, employee data, and legal compliance. A reliable Employer of Record for software development companies ensures 100% adherence to local labor laws, GDPR, and data privacy regulations, minimizing legal and financial risks. Leading EOR solutions for developers also include airtight IP rights transfer and NDAs in every employment contract, keeping your innovations safe. 

At Alcor, we go beyond standard Employer of Record for software engineers – our in-house legal team provides a legal shield for your business, ensuring compliance, data security, and IP protection while maintaining pricing transparency. With our international Employer of Record services, your global expansion remains protected at every stage, from hiring to offboarding. 

How do you choose the right global Employer of Record for software developers? 

When choosing the right Employer of Record provider for your software development, several factors are crucial for ensuring a seamless and compliant global expansion: 

1) Industry expertise: Choose an EOR company that has expertise in the tech industry, from hiring software engineers to managing developer contracts, IP rights, and stock options. This ensures they understand the needs of fast-growing IT businesses and meet them. 

2) Legal entity availability: Verify that your EOR solution has a registered entity to legally employ developers, handle payroll, taxes, and ensure compliance with local labor laws. 

3) Compliance protection: Make sure your chosen Employer of Record for software development companies has a solid in-house legal team capable of mitigating risks like worker misclassification and ensuring GDPR/CCPA data protection compliance. 

4) Transparent pricing: Go for an EOR platforms that provides clear invoices with no hidden fees or buyout costs; such tech EOR providers typically operate on a clear flat-fee or percentage-based structure. 

5) Proven reliability: Check the Employer of Record service provider for case studies and client reviews on platforms like Clutch, G2, or Trustpilot to confirm reliability, responsiveness, and expertise in ability to handle real-world challenges and deliver measurable results for IT businesses. 

At Alcor, we combine all these essentials in one solution – delivering Employer of Record for software development alongside Silicon Valley–grade recruitment, full operational support, and legal compliance to help tech companies scale globally with confidence. 

How can I compare Employer of Record services providers?

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

To compare Employer of Record service providers, start by shortlisting 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: 

1) how they ensure legal compliance and IP protection, 

2) their pricing structure (including potential hidden or buyout fees), 

3) the level of local legal presence and in-country support, 

4) and 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 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 global team growth. 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 who specializes in the tech industry, has flexible pricing, provides 360° in-country support, and offers 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 for software development?

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 account management 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 everything you need in one place. 

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

A tech recruitment agency is a service provider that covers 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, 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, as we provide 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 process of opening your legal entity that may last for up to 3.5 months and cost you thousands of dollars, 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 for software developers?

Looking for your next EOR service provider for software developers? Here’s a curated list of the top 10 Employer of Record companies that help global businesses manage compliant hiring, payroll, and international teams through EOR services for developers and EOR platforms.  

1. Alcor – founded in 2017, this software R&D center accelerator provides tech-focused EOR services across Latin America and Eastern Europe, ensuring full compliance with local labor and tax regulations for engineering teams and preparing NDAs and IP rights agreements to protect source code, proprietary technologies, and product deliverables. The company also supports recruitment, payroll, and back-office operations for Western tech product companies. In addition, Alcor offers an automated platform, AlcorOS, which combines workflow automation with human-led support. 

2. Deel – founded in San Francisco (2019), Deel offers EOR, global payroll, contractor, tax, and compliance services in 100+ countries. Known for integrations with platforms like Workday, HiBob, BambooHR, SuccessFactors, finance stacks. 

3. Remote – a remote-first EOR platform that handles employment, payroll, benefits, and compliance in 90+ countries without requiring you to set up local entities. 

4. Papaya Global – a fintech-SaaS company offering payroll, workforce management, benefits, and EOR in 160+ countries. 

5. Rippling – combines EOR services with its HR/IT platform; suitable for tech firms that seek HR, devices, and payroll in one stack. 

6. Globalization Partners – a global EOR vendor, that operates in 180+ countries and combines EOR and contractor workflows with Gia, its AI help layer for compliance and HR questions. 

7. Pebl (formerly Velocity Global) – US-based EOR vendor offering global payroll, and workforce compliance in over 185 countries. In September 2025, Velocity Global rebranded to Pebl and launched an AI-first hiring/pay platform. 

8. Oyster HR – EOR vendor, offering its services in 185+ countries. Supports hiring, onboarding, benefits, and localized compliance. 

9. Multiplier – established in 2020, this EOR vendor covers 150+ countries and offers support in EOR, PEO, and HR consulting for startups and scale-ups. 

10. RemoFirst – EOR for software developers that manages payroll, taxes, compliance, and benefits for both full-time employees and contractors across 185+ countries. 

But note: some companies don’t focus on the tech industry, which means they overlook important aspects like 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, hardware procurement, office leasing, employer branding, and other operational support. In case they are vital for your business, you’d have to either provide them on your own or hire additional vendors. As a result, this additional workload might lead to more spending, coordination struggles, and deadline postponing. 

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

Alcor is not just a platform for managing HR & payments. We focus on tech only and have become an all-in-one long-term partner for People.ai, BigCommerce, Sift, Ledger, Franki, and many other tech companies scaling in LATAM or Eastern Europe.  

Our solution is a software R&D center that combines:  

1) Silicon Valley-grade recruitment of 10 to 100 developers per year with our in-house tech recruitment team of 40; 

2) Comprehensive Employer of Record services that cover tech contracts – from IP rights protection to NDAs, as well as other legal support, payroll, and benefits administration;  

3) Operation services – hardware procurement, office leasing, HR, and IT support.  

With Alcor, you get the best of both worlds: the speed of automation and the care of real human collaboration.