Talenteum helps you choose the best collaboration model to recruit remotely in full compliance and with impact. Here are the most frequently asked questions on the topic, designed to help you make the right decision.
1. What is the difference between EOR and outsourcing?
EOR is a hybrid employment model: the talent is employed by a third-party company (like Talenteum), which handles payroll, contracts, and local compliance. The client company works directly with the talent without officially employing them.
Outsourcing means entrusting a process or task to a third-party company, which provides its own teams and manages the service end-to-end.
2. When should you use EOR instead of outsourcing?
Choose EOR if you want to:
- Work with a specific, identified talent
- Manage day-to-day work yourself
- Ensure local compliance without setting up a legal entity
- Offer a stable and motivating framework for the talent
Opt for outsourcing if you:
- Want to outsource an entire process
- Need a turnkey operational solution
- Don’t want to manage individual talent profiles directly
3. What are the advantages of EOR for companies?
- Legal simplicity: no need to set up a local entity
- Compliance with local labor laws
- Talent retention (stable contracts)
- Cost transparency: clear breakdown of salary + service fee
4. What are the advantages of outsourcing?
- Reduced costs
- Operational flexibility
- Time savings on HR management
- Possibility to outsource non-core functions
5. Can both models be combined in the same HR strategy?
Yes. For example:
- Use EOR for strategic remote talents
- Use outsourcing for repetitive or support activities
This hybrid model allows for agility, social impact, and performance.
6. Is EOR legal in all African countries?
No. Not all countries have formal legal frameworks for EOR. However, Talenteum offers compliant models through the Employer of Record (EOR) approach tailored to local contexts.
7. What’s the difference between an EOR and an outsourcing provider?
An EOR legally employs remote talent on your behalf in compliance with local laws. The company retains managerial control over the worker.
An outsourcing provider manages the service using its own teams. The client is not involved in day-to-day operations.
8. Which model is best for hiring a tech profile?
For a developer, data analyst, or IT expert, EOR via an EOR is ideal. It ensures a direct, stable, and compliant long-term relationship.
Outsourcing is more suitable if you’re handing over an entire tech project to a provider.
9. What hidden costs should you watch out for in an outsourcing contract?
In traditional outsourcing, some providers include hidden fees for management, supervision, or services. Talenteum promotes total transparency: you know the talent’s salary and service fees from the start.
10. Does EOR enable social impact?
Yes. EOR allows African talents to work for international companies without leaving their home country, while benefiting from stable contracts, social security, and skill development. It’s a sustainable form of impact sourcing.
11. Which model offers the best experience for the talent?
EOR offers a more secure employee experience: formal contract, payslips, access to social rights. It fosters motivation, loyalty, and retention.
Outsourcing often provides less visibility and recognition for the talent, who is part of an externalized service team.
12. Can you switch from one model to the other?
Yes. A company can start with outsourcing and later move to EOR if it wants to integrate the talent more closely. Talenteum supports such transitions.
Still unsure whether to choose outsourcing or EOR? Contact the Talenteum team for personalized guidance.
Contact us to discuss or discover our technology platform at www.breedj.com
