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GEO Services: What You Need to Know

By November 1, 2017September 26th, 2022No Comments

Globalization is here and now and if your organization is considering a leap into the global marketplace, no time is better than the present. There are many opportunities available for companies to take advantage of when expanding globally including access to a new consumer base and establishing new revenue streams. As the benefits of global expansion seem hard to pass up, it can be a difficult task to tackle. In order to remain compliant and mitigate risk during global expansion, companies must understand local employment regulations in each country they expand to. To simplify the global expansion process, many companies are utilizing GEO services.

What Are GEO Services?

GEO is an acronym that stands for, “Global Employment Outsourcing.”  Through this global employment model, the GEO provider hires your employees on your behalf and becomes their legal Employer of Record. You manage all day-to-day control of your employees, while the GEO provider manages all risk mitigation, compliance, payroll, and benefits.

GEO Services Save Time

Establishing a legal presence overseas is a long and expensive process, especially if you create a foreign entity. On average, it takes three to four months to establish an entity and in some countries, it can take much longer. For example, in Brazil, it takes an average of 102.5 days. Partnering with a GEO services provider enables companies to compliantly onboard employees in a matter of days, without establishing a legal entity.

Additionally, an experienced GEO provider will understand the local market’s employment law and culture. When you use this service, you won’t have to study the complexities of local labor laws, understand how taxes are collected, or work through the myriad of regulations that are unique to each country as the GEO manages this for you.

GEO Services Increase Speed to Market

Because GEO service providers onboard new employees for you, it dramatically increases your speed to market. The faster you move into a new market, the sooner you will have access to those new customers and new revenue sources that encouraged you to expand in the first place.

GEO Services Can Decrease Costs

A GEO service can decrease global expansion costs by up to 60% when compared to creating an entity in a new country. Not only that, but the costs are upfront. When you outsource your global employment needs, the contract ensures there are no hidden cost or unexpected fees.

GEO Services Mitigate Risk

Let’s take a look at an example that Jiah Kim provides about an anonymous company that hired an international freelancer in Brazil. After working with the freelancer, the worker demanded a three-fold increase in fees. After negotiations failed, the company decided to sue in Brazilian court.

The company had no experience with the Brazilian legal system and no knowledge of the local business culture. They struggled to find a lawyer that spoke enough English to help them and to resolve the issue, the employer spent $18,000 in legal fees and translation services and hundreds of hours time.

A GEO services provider takes on the risk of managing employees in a new country because they become the legal Employer of Record.


When expanding globally, we suggest working with a GEO service provider, also known as International PEO, to help guide you through the legalities of hiring employees overseas. To learn more about the benefits of working with this service, get in touch with our team today!