Digital transformation has redefined many fields, yet some of the world's most complex industries, such as infrastructure, biotechnology, and manufacturing, still need an active, on-site workforce to operate effectively. For these industries, global expansion demands relocating teams across continents or sourcing specialized local talent. These processes are resource-intensive and may pose additional challenges for penetrating new markets. Ironically, for an international engineering firm, the first gap to bridge is often the talent gap – before they can get down to building actual bridges.

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Here is a realistic scenario: a German engineering company specializing in renewable energy projects wins a contract to build a wind farm in Brazil. To ensure project quality and technical expertise, they need to relocate their highly skilled engineers and project managers for a one-year assignment. The company's HR department has zero experience with Brazil's visa, tax, and employment regulations, and needs support with managing a remote engineering team.

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Another scenario involves a U.S.-based civil engineering company, known for its infrastructure development expertise, that decides to expand into the Vietnamese market. To establish a presence, manage operations, and perform effective engineering team scaling, they need to hire local engineers, site supervisors, and project coordinators. Without an entity in Vietnam, however, they face challenges in complying with local labor laws. The company wants to build its Vietnamese team smoothly and assess market potential before fully committing to a new branch.

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Yet another scenario: a European mechanical engineering company specializing in automotive design wants to reduce operational costs by outsourcing part of its research and development to Eastern Europe. Poland, with its pool of skilled engineers available at a lower cost compared to Western Europe, is their location of choice. The company looks for effective remote engineering project solutions to legally employ a team of engineers and designers in Poland.

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These examples share the need for reliable third-party assistance that can speed up and simplify the processes associated with global expansion in various branches of the engineering industry. Fortunately, there is a common solution for each scenario and many more: Employer of Record (EOR). EORs do more than legally hire remote or project-based teams, handle onboarding, ensure tax and labor law compliance, and manage payroll. For energy and manufacturing sectors, EORs can facilitate workforce scaling in regions with alternative energy sources or lower costs as businesses rethink talent distribution and outsourcing in the face of the European energy crisis (our article on the topic here).

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Below you will find real case studies illustrating how EORs boost efficiency and cut costs for engineering companies worldwide.

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Case Study 1: EOR-Driven Market Entry for a Biotechnology Project in Japan and South Korea

Company: AmoyDx

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Industry: Biotechnology, Molecular Diagnostics

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Project location: China expanding into Japan and South Korea

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Challenge: rapid onboarding to meet time-sensitive business objectives in highly regulated East Asian markets

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How EOR helped: AmoyDx used an EOR platform to quickly onboard and manage sales, marketing, and scientific teams to support their oncology precision medicine products and diagnostic services. This solution ensured compliance with labor regulations in Japan and South Korea, significantly reducing the risk of legal challenges. No physical offices were required, and the platform covered a broad scope of tasks such as HR, payroll, and benefits administration, resulting in faster market penetration and cost efficiency. The collaboration allowed AmoyDx to channel resources toward operational and strategic goals instead of logistical compliance.

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Outcome: As of 2022, AmoyDx's new hires contributed to total revenue of around USD 13.8M from international markets.

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Case Study 2: Onboarding Within 24-Hour of a Key Hire in the Automotive Industry in Slovakia

Industry: Automotive

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Project location: Slovakia

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Challenge: Transitioning a key hire swiftly to fill a leadership position essential for project continuity without administrative interruptions.

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How EOR helped: The company successfully transitioned the key hire within 24 hours with Acvian’s support and software solution. Acvian ensured compliance with employment laws, allowing the company to bypass the lengthy traditional hiring process, and managed HR functions, payroll, and benefits administration. (see details)

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Outcome: Quick onboarding enabled the company to reintegrate the leadership role without losing momentum in project execution.

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Case Study 3: EOR Solutions for Large-Scale, Multidisciplinary Engineering Teams

Company: Jacobs Engineering Group

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Industry: Engineering and Infrastructure Development

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Project location: large-scale infrastructure projects across Europe, Asia, and North America

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Challenge: Acquiring large, multidisciplinary teams for long-term projects (spanning months to years).

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How EOR helps: Jacobs uses EOR services for swift talent acquisition and onboarding across multiple locations, especially for roles that require local expertise in regulated sectors like environmental engineering. Using an EOR allows Jacobs to rapidly set up compliance and payroll for temporary team members on international projects. EOR support also covers contract and benefits management, allowing the company to concentrate on core project tasks like design, execution, and client relations.

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Outcome: With the help of EOR solutions, Jacobs adapts to local regulations quickly and implements multiple large-scale projects.

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Case Study 4: Cost-Efficient Entry into India’s Engineering Sector

Industry: Engineering (various)

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Project location: India

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Challenge: Expanding operations to India while navigating the complex regulatory landscape, which can lead to high costs and delays.

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How EOR helps: With the help of EOR solutions, international companies can quickly onboard engineering talent in India, adapt to local regulations, and minimize operational costs, facilitating faster project execution and market entry. An EOR takes charge of payroll, benefits administration, and compliance with Indian labor laws, which alleviates the administrative burden on the company.

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Outcome: Reduction of monthly payroll costs through EOR-driven hiring of local talent, and a decrease in tax-related expenses.

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Acvian as your Employer of Record solution

As these examples show, EOR solutions provide engineering companies with the flexibility, speed, and compliance needed for effective global expansion, driving operational success and opening doors to new opportunities. If you represent an engineering company seeking a reliable and cost-effective global workforce management solution, we invite you to connect with us by filling up the contact form or booking an introductory meeting with one of our experts.