10 Best EOR for Outsourcing Companies

An Employer of Record (EOR) is a third-party organization that legally employs workers on behalf of another company. Instead of opening a local entity, an outsourcing company can use an EOR to handle employment contracts, payroll, benefits, and compliance in multiple countries.

The outsourcing company manages the employee’s daily work, while the EOR takes care of all the legal and administrative responsibilities, ensuring compliance with local labor laws. This makes global hiring faster, safer, and far less expensive.

Why Does an Outsourcing Company Need an EOR?

Outsourcing companies often work with international clients and need to hire skilled talent across multiple countries. Setting up entities in every country just to hire a few employees is expensive and can take months.

An EOR solves this by acting as the legal employer. For example, if you’re an outsourcing agency in the Philippines working with European clients, you can hire a developer in Germany or a designer in Spain within days—all without creating local subsidiaries.

It also ensures compliance with strict labor regulations, helping outsourcing companies avoid misclassification issues or costly fines. For businesses scaling quickly, an EOR is the fastest way to build distributed teams and meet client demands globally.

Benefits of Using an Employer of Record Service for Outsourcing Companies

Outsourcing companies gain several advantages from using EOR services:

• Compliance with local labor laws – EORs ensure contracts, taxes, and benefits follow each country’s employment regulations, reducing legal risks.
  
  
• Faster global hiring – Onboard talent in a matter of days rather than waiting months to set up entities.
  
  
• Payroll and benefits administration – EORs handle salaries, social security, and mandatory benefits, keeping employees satisfied and reducing HR workload.
  
  
• Cost efficiency – Avoid expensive entity setup and ongoing maintenance costs in each country.
  
  
• Flexibility to scale – Quickly hire and offboard employees as client demands change, without complex legal processes.
  
  

For outsourcing companies competing in a global market, an EOR makes international hiring smooth, compliant, and scalable.

10 Best EORs for Outsourcing Companies

The following providers stand out for their global coverage, compliance expertise, and suitability for outsourcing companies looking to expand their teams internationally.

1. Rivermate – Best for Fast, Compliant Global Hiring

Rivermate is ideal for outsourcing companies that need to hire quickly while staying fully compliant. With coverage in 150+ countries, Rivermate makes it easy to onboard developers, designers, or support teams anywhere.

Its clear pricing model and personalized customer support are great for agencies that need flexibility. Rivermate also offers Contractor of Record (COR) services, allowing you to manage both employees and contractors under one platform—perfect for outsourcing companies with mixed workforce models.

Onboarding takes just a few days, and every step, from payroll to benefits, follows local labor laws, giving you peace of mind.

2. Deel – Best for Contractor and Employee Mix

Deel is known for its strong contractor management system, making it great for outsourcing agencies that use a mix of full-time employees and freelancers.

Its automated platform simplifies global payroll and tax compliance, and it offers localized contracts for over 100 countries. While it’s user-friendly, smaller agencies might find the per-employee pricing higher compared to other employer of record services.

3. Papaya Global – Best for Payroll Automation at Scale

Papaya Global is built for larger outsourcing companies managing hundreds of employees worldwide. Its cloud-based platform integrates payroll, workforce management, and analytics, providing detailed insights into labor costs across markets.

However, Papaya can feel too complex for smaller agencies needing just a few hires in different countries.

4. Globalization Partners – Best for Large Enterprises

Globalization Partners (G-P) offers enterprise-level compliance and security, making it suitable for outsourcing companies working with high-profile clients who demand strict GDPR and data privacy compliance.

Its robust infrastructure is great for long-term scaling, but pricing tends to be higher, making it less ideal for smaller or mid-sized agencies.

5. Remote – Best for Quick Onboarding and Equity Options

Remote provides an easy-to-use platform, allowing outsourcing companies to onboard talent in days. It also supports equity management, which is helpful for agencies offering stock options to key employees.

However, Remote’s support is less personalized compared to regionally focused providers.

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6. Velocity Global – Best for Complex Compliance Needs

Velocity Global is ideal for outsourcing companies expanding into countries with complicated labor laws. It offers strong legal expertise and handles unique compliance requirements, making it a solid choice for niche or highly regulated industries.

The downside is its pricing, which is higher than many competitors.

7. Multiplier – Best Budget-Friendly Option

Multiplier is a cost-effective EOR platform suited for small and mid-sized outsourcing agencies. It offers transparent pricing and straightforward onboarding, though it may lack the extensive local expertise of larger EOR providers.

8. Skuad – Best for Startups Testing Global Markets

Skuad provides affordable EOR services and is a good fit for outsourcing companies testing new markets before committing to long-term hires. Its platform covers basic compliance and payroll needs, though it doesn’t offer the same level of customer support or advanced features as top-tier providers.

9. Horizons – Best for Expanding in Asia and Emerging Markets

Horizons specializes in Asia and emerging markets, making it valuable for outsourcing companies hiring talent in countries like India, Vietnam, or the Philippines. It offers good compliance coverage in these regions, though its global reach is narrower than Rivermate or Deel.

10. Omnipresent – Best for Employee Experience

Omnipresent focuses on providing an excellent employee experience, which can help outsourcing companies improve retention rates. Its benefits packages and HR support are highly localized, ensuring employees feel well-supported.

However, its coverage is not as extensive as other EOR providers for smaller or less common markets, which can be difficult for outsourcing companies.

Costs of Using an EOR

The cost of an EOR service varies by country, role, and provider. On average, outsourcing companies can expect to pay $500 to $1,000 per employee per month.

This typically includes employment contracts, payroll processing, tax compliance, and mandatory benefits. Some providers charge percentage-based fees, while others offer flat monthly rates. 

When budgeting, consider both the monthly fees and any additional charges for contractors or specific benefits packages.

Can I Also Hire Contractors Through an EOR?

Yes, many EOR providers now offer Contractor of Record (COR) services. This is especially valuable for outsourcing companies, as you often work with a mix of full-time employees and freelancers.

Rivermate, for example, provides both EOR and COR services, allowing you to manage global contractors compliantly, handling contracts, payments, and tax documentation for you. This ensures freelancers are properly classified, reducing legal risks for your business.

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* This post is written in collaboration with our guest contributor, who has financially supported its publication.

Cover Photo by Danish Charles on Unsplash