Employer of Record (EoR) – State of the Market 2025
State of the Market Report

5 Feb 2025
by Priyanka Mitra, Soumalya Mukhopadhyay, Varisha Jain, Eejya Singh

Employer of Record (EoR) providers are third-party intermediaries that manage employee hiring, compliance, payroll, and benefits. They enable enterprises to prioritize core operations and avoid labor law complexities. EoR services are particularly valuable for businesses expanding into new markets or hiring remote employees without establishing a local legal entity. By partnering with an EoR, companies can streamline hiring, ensure compliance, and prioritize core business activities while the EoR handles legal and HR complexities.

In today’s volatile market, shaped by global economic uncertainty, political instability, evolving workforce models, and AI advancements, EoR solutions offer businesses the flexibility to adapt quickly to changing global economic conditions. EoR enables businesses to scale, access global talent pools, and adjust workforce needs without the challenges of setting up local entities through M&As, strategic partnerships, and capability building. By outsourcing HR responsibilities, organizations mitigate legal risks, ensure compliance, and maintain operational consistency. This outsourcing enhances agility and resilience in uncertain economic conditions.

In this report, we analyze the EoR market in-depth, including key growth drivers, buyer adoption trends, and provider investments in advanced analytics, next-generation technologies, and flexible solutions. The report relies on primary and secondary data collection, including conversations with enterprise buyers, outsourcing providers, and EoR specialists.

Scope

  • All industries and geographies
  • The report is based on primary and secondary data collection, conversations with market participants (buyers and outsourcing providers), and fact-based research

Contents

In this report, we examine:

  • The EoR market landscape, including market size, trends, and use cases
  • Buyers’ take on the EOR market
  • Provider landscape
  • Key investment themes in the EOR market and outlook for market stakeholders

Membership(s)

Human Resources

Sourcing and Vendor Management

 

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