If you operate a technology startup or an established business that primarily offers digital products and services, you are likely to have a significant customer presence worldwide. There is also a high probability that you are operating a remote workforce worldwide, allowing for greater collaboration across time zones. Remaining local never hurt anyone, there may be good reasons to maintain a global presence that you may not be aware of. One of them is about multiple choices at all levels that have a direct impact on your technology business. And I'm talking about the freedom of to choose between the regulatory laws of different countries, the tax structure and take advantage of your unique position in acquiring and retaining the best talent.
There are different reasons why companies choose to integrate worldwide. For example, it is not uncommon for a software development company to maintain its technical headquarters in the United States, sales teams on five or six continents and outsource technical support staff to countries where the hand is cheaper, like India and China. Technology companies are in a particularly advantageous position because, unlike manufacturers of physical products, the laws on imports and exports, the rights and manufacture of a physical product may not apply as much in technology.
Here are the top five reasons why your digital technology company should at least consider expanding beyond the border.
1. Branding and credibility
One of the obvious symptoms of developing a company's global presence is the increased recognition of the brand and the apparent credibility of its customers, competitors and the public. Even if you are not yet ready to deploy in another country, simply maintaining a "registered agent office" by proxy can be a good start. For example, in developed countries such as the United Kingdom, the entire constitution-making process takes less than 3 hours and can be completed remotely, either via Companies House's user-friendly website or via a business formation ". For low start-up costs and tiny registered agent fees, you now have a legitimate UK-based company with an office address and mail forwarding. Although for this it is not necessary to set foot on British soil, it is advisable to have a visa (if you need it) in advance if you need it one day, very soon.
2. Regulation or lack of regulation
We all know that regulation and compliance requirements can hinder high-tech companies, especially start-ups. For example, if your technology company is busy storing biometric data for some users, UK law requires the appointment of a data protection officer, which represents a significant expense for a person who just started a technology company. We all know how much the GDPR has also changed the Web; Just look at the ugly "cookie banners" that pop up everywhere. If you are strategic here, you may be able to legally evade some of these barriers while remaining fully compliant. At the beginning of your activity, you can choose a country with lax data protection laws for data storage. This may not totally exclude you from GDPR or data protection laws, but it leaves you room for maneuver.
3. Tax incentives
If you primarily host a remote workforce, this can be a rewarding arrangement. For example, Ireland offers a huge tax break to eligible research and development companies. How about having an R & D branch in Ireland and a remote labor force employed in this country, or even subcontractors? You would not need to cut down on office space because a "registered agent" address would probably be enough. The very presence of the company would allow you to recruit talent and save on the costs of R & D.
4. Acquisition of talents
One of the most obvious is access to the best global talent without having to navigate the terrible US immigration system. The Congress severely restricts the pathways of legal immigration of skilled workers, regardless of their party in power. The system is designed at all levels to discourage legal immigration. If you have any experience with an employee's H1B sponsorship process, you know it. The restrictions are even stricter for international students working on a permit, for example on a F1: CPT / OPT / STEM-OPT. In contrast, developed countries such as Canada, Australia and the United Kingdom have a complete and sensible point-to-point immigration system that rewards top talent solely on the basis of their skills. This is great news for employers because, besides not having to worry about losing talent in the near future, the cost savings associated with visa sponsorship and the hiring of legal advisers are considerable. In addition, given that wages in technologies tend to be directly proportional to the cost of living in a country, paid vacation (PTO) and other factors, US firms could see their relationship strengthened in a number of ways. now the presence of salaried employees in Canada and the United Kingdom. To give you an example, the average salary of a software engineer in the United States is about $ 104,300. Surprisingly, wages are much lower for the UK even at the higher end of the spectrum.
5. True diversity
Personally, speak as someone who is pretty diverse itself, diversity is a neutral preference – it is neither good nor bad in itself. Note that diversity has advantages and disadvantages that you need to know as a leader. The key is to take advantage of diversity with care; do your positives outweigh the negatives. An exceptional product, unless consumed by various users, only needs excellent in its objective functionalities provided to its immediate users. In this case, however, if your customer base is spread all over the world – from a health product brand in San Diego to a bank in Shanghai, your technology products can truly benefit from diversity. Having a global technology presence is probably one of the best ways to ensure the "true diversity" of your business, because you have employees based in different countries, of different cultures, collaborating in the development of digital products for the consumption of diverse masses around the world. This is far greater than simply ticking boxes for legal compliance or respecting human resource quotas.
In conclusion, as with everything, there will always be advantages and disadvantages, but it is wise to become aware of the choices that a global presence of a company can open up for your technology brand and evaluate them critically. With the right strategy and the right mindset, you might surprise yourself with the opportunities and the promising returns of a globalization.
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