Why Outsource Your Global Contractor Payroll
Why should a company outsource their global contractor payroll, compliance and management needs rather than build a country by country footprint for their clients? The story of CXC Global below will demonstrate the time, monetary resources and determination that it takes to build a company with a global footprint.
CXC Global was established during 1992 in Sydney Australia, with a mission to supply contractor compliance and payroll solutions for global companies. Over the last 22 years, CXC Global has grown our business through offering our clients a compliant, cost effective means of engaging contract workers globally with systematic expansion driven by client / partner needs and countries where contingent utilization is an established workforce philosophy. CXC Global has grown to provide solutions in over 60 countries with compliant “OWNED and AFFILIATE” operations all focused on providing a similar level of service. The Key offering to our clients and partners is how we manage and reduce risk for both our clients and our contractors. CXC Global’s understanding of local employment and compliance legislation has enabled us to provide seamless Contractor Management Outsourcing services to leading Human Capital Organizations. CXC Global is always at the forefront of forthcoming changes in legislation, ensuring that our country solutions are ‘future proofed’ to protect our partners, clients and contractors both now and in the years to come.
CXC Global today has a Senior leadership team with over 90 years combined industry experience relating to global contractor management and a total population of over 200 team members. CXC Global footprint covers 7 Regional Compliance offices located in the USA, Brazil, United Kingdom, Hong Kong, Singapore, Malaysia and Australia. CXC Global also has country operations in 22 countries and has the capability to communicate with our clients, partners and governments in over 25 languages spoken by CXC Global teams.
CXC Global will explore countries where contingent utilization is an established workforce philosophy and as new CXC Global countries are established, exit strategies must also be created in case of geo-political changes to maintain contractor, client / partner and CXC Global’s integrity. CXC Global can assist with Visa / Work Permits for Expats in many of our countries subject to local legislative requirements. CXC Global can offer background investigations per country standards in many of our countries at our clients and partners request. CXC Global manages the Contractor lifecycle management, contracts, Onboard / Offboard, taxes, benefits in all of our countries. Benefits that are available to contractors driven by local requirements include: Choice of Solution structure, health & lifestyle benefits, travel agent services, legislative updates, mortgage & property Services and retirements plans
In 2013 CXC Global launched CXC Comply, the first online compliance portal to verify and validate contractors’ eligibility to work in country, proper solution establishment and insurance documentation allowing CXC Global to indemnify our clients and partners that their global contingent contractor workforce is compliant with local standards.
As CXC Global enters a new country the cost and time frames for full deployment will vary depending on the contingent workforce philosophy of each country. In 2012 CXC begin its expansion into Central and South America. Over 9 months passed before CXC Global was given its business license in Brazil and Mexico with CXC Global expending over $150,000, before the first CXC Global internally managed contractors were engaged.
As companies in the USA have assisted their clients with domestic USA contingent workforce classification since the IRS announcement in 2008 that over 6000 companies will be audited for 1099 compliance, many companies have begun to look at their global contingent workforce programs. The time and cost that a USA centric company would have to exhaust to build a compliant workforce management program globally would exceed millions of dollars and take years to complete. Combine this with hiring the right team to manage and operate globally in countries where the primary language is not spoken and the legislative employment and operations standards are not understood could and have resulted in the failure of a few companies trying to enter this industry.
Through a systematic plan of growth and expansion CXC Global has solutions in 41 countries that are OWNED where CXC has a registered company and bank account. CXC Global has an affiliate network for another 13 countries where we have agreement in place for these affiliates to execute payroll and compliance. CXC Global has vetted these affiliates for compliance standards, fiscal responsibility and client services.
CXC Global partners with many of the world’s leading Human Capital Management Companies providing services where our partners don’t have capabilities and solutions to services their end clients. These end clients have outsourced many of their non-core functions and Human Capital Management organizations who are USA centric are now doing the same to assist their clients globally. CXC Global also realizes we are not a true global company and do not know of any company that has solutions in the roughly 190 countries globally.
The story as told above and what CXC Global believes is our competitive advantage and the value we bring to our partners and clients is our unmatched network of OWNED and Affiliate countries where a compliant service can be delivered in a consistent manner with a single point of contact for as few as one contractor or hundreds of contractors.
To view our leadership team, click www.cxcglobal.com/americas/our-people
To talk more about outsourcing your contractor payroll, contact:
John Smith, MD CXC Global Americas.
Follow us www.twitter.com/CXCGlobal_USA @CXCGlobal_USA or Linked-in.