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 for tech companies?

The best EOR services for technology take care of everything from compliant employment, payroll, and taxes to onboarding, benefits, and IP protection. In the tech industry, an Employer of Record for tech companies ensures smooth team management without the need to open a local entity. Reliable tech EOR providers like Alcor go further – combining Employer of Record services for tech with full-cycle recruitment and 360° operational support, helping product tech companies scale fast and stay fully compliant. 

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. 

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 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 payslips and payouts to your remote software engineers. 

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 tech companies?

The cost of EOR services for technology companies varies depending on the provider and the level of support included. Most tech EOR providers 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 services for tech follow 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 tech industry expenses can decrease thanks to our scalable and flexible pricing approach. 

How secure is the EOR for tech companies?

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

At Alcor, we go beyond standard Employer of Record services for tech – our in-house legal team provides a legal shield for your business, ensuring airtight compliance, data security, and IP protection while maintaining full transparency. With Alcor, your operations across LATAM remain protected at every stage, from hiring to offboarding. 

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

When selecting the right Employer of Record for tech companies, several factors are crucial for ensuring a seamless and compliant global expansion:  

– Focus on tech specialization – your provider should have deep expertise in the tech industry, from hiring software engineers to managing developer contracts, IP rights, and stock options. This ensures they truly understand the needs of fast-growing IT businesses. 

– Verify the legal presence of your EOR for technology companies in your target country. A reliable partner must have a registered entity to legally employ developers, handle payroll, taxes, and ensure compliance with local labor laws. 

– Equally important is the compliance shield – make sure your chosen EOR for the tech sector has a solid in-house legal team capable of mitigating risks like worker misclassification and ensuring GDPR/CCPA data protection compliance. 

– Look for a transparent pricing model with no hidden fees or buyout costs; reputable tech EOR providers typically operate on a clear flat-fee or percentage-based structure.  

-Finally, evaluate their proven track record through case studies and client reviews to confirm reliability, responsiveness, and expertise in the EOR for tech industry. 

At Alcor, we combine all these essentials in one solution – delivering Employer of Record services for tech 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 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 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?

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 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 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 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 for tech companies?

Looking for your next EOR vendor? Here’s a curated overview of the top 10 Employer of Record providers supporting different companies worldwide, including technology firms, with compliant hiring and global team management. 

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 remote-first HR 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 – US-based provider offering EOR, global payroll, and workforce compliance in over 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 like IP rights protection contracts, NDAs, and stock options as a benefit. They also provide a limited range of services that don’t include full-cycle recruitment or operational support, such as hardware procurement, office leasing, and employer branding. For these services, you’d have to hire additional providers – and as a result, manage two or three different vendors at once, which often leads to unnecessary headaches and coordination struggles. 

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

10. Alcor is not just another 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:  

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

– Сomprehensive EOR services for tech companies that cover tech contracts – from IP rights protection to NDAs, as well as other legal support, payroll, and benefits administration;  

-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.