HomeBusinessHow An IT Startup Can Benefit From A PEO

How An IT Startup Can Benefit From A PEO

peo professional employer organization Being in the IT industry certainly has many advantages. It is one of the most lucrative industries globally, and there are no chances of it slowing down anytime soon. It will continue to grow in the near future considering the importance that technology plays in the modern world. If you are planning an IT-related startup in a foreign country such as Ireland or Spain, then considering doing it through a PEO can help.

What a PEO is

PEO is the short form for Professional Employer Organization. It is meant to be an entity that leases employees to an employer and enters into employment terms with it. The arrangement lets the PEO handle various responsibilities for the organization as far as their employees are concerned and takes some of the load off it.

Now let’s look at how an IT startup can benefit from a PEO.

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Help with Finding the Right Talent

This is the most important thing that a PEO does. It takes over the human resource aspect of an organization and ensures that the right talent gets hired. For instance, if you are thinking of starting a subsidiary or entity in a foreign country for your IT company, then you can use the services of a PEO to hire and recruit local talent.

This allows you to focus on appropriately building your startup business without having to go through the rigors of hiring. The PEO will do the job for you and give you the employees you need.


The next thing you must consider as a big advantage is the savings of time. Hiring IT professionals to work for your organization in a foreign country is hardly an easy task. Probably, you don’t know a lot of people even if you have set up a subsidiary. That is why giving the task to a PEO certainly is a smart thing to do.

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Happy Employees

office business Your startup is going to be as successful as the happiness of your employees. A PEO can help in this regard by being the go-to person to give your employees things like healthcare, retirement facilities, and more. You will not have to worry about it or be involved in the process of making sure your employees get all these employment benefits.

Successfully Integrate with Local Labor Laws

Let’s pretend that you plan to set up a startup in a different country than yours, such as Spain. Dealing with labor laws specific to a region you’re unfamiliar with can take out a huge chunk of time and energy. You will want someone who knows all there is to know about the local labor laws and regulations and this is where a quality Spain PEO would come in. Such an entity could help your organization successfully integrate itself with local labor laws.

For example, knowing whether the country you are hiring has paid vacation leave will help you negotiate with a recruiter in a much better manner. That is exactly where a company that specializes in PEO, such as Via, can help you and work for you in hiring the right IT professionals.

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Labor laws in most countries are changing all the time. Not integrating or following the local laws to do with labor and human resource management can lead to fines and penalties. That is why a PEO can be highly beneficial.

Outsource Some or All HR-Related Activities

business office meeting Setting up an entity or a subsidiary in a foreign country requires loads of patience and a grip on the reality of the situation. Even if you have an established business in your own country, it is not going to be easy to start in a foreign country. Taking as much help as you need as far as HR-related activities are concerned is certainly a smart move. It can help you make the most of your time by outsourcing the work of HR to a different person.

It depends on you whether you will outsource some or all such activities depending on how busy you predict yourself to be.

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As you can see, a PEO can be the base start to having a good workforce for your startup. Human resource is incredibly important and it is a good idea to have someone on your side with local knowledge and experience when you are planning to expand in a foreign country.