How IVC tapped into the Australian market by using Horizons

Before Covid-19, as part of its globalization strategy, IVC wanted to change the way they structure their international offices.

Where before the company had international offices that were completely localized with full back office and operations in each country of operation, IVC had an ambitious target to transition these offices into a ‘branch-like’ structure with a central command. If this were achieved, the company would be able to optimize the resources shared between different countries and regions and increase organizational efficiency.

With Horizons EOR, the HR side of this critical mission became easy in countries where EOR is utilized. IVC realized that when it comes to international operations, it’s better to have the best person for the role working the job, no matter where they are located.

For example, IVC has 7 factories globally and the company’s products can be found in over 80 countries worldwide. Does IVC need an entity in all 80 of those countries? They decided not.

For the case of Australia, IVC had several considerations:

Australian market share:
With a valuable and well-documented health and fitness market, it’s no wonder IVC wanted to enter the Australian market.

Speed:
The faster you enter a new market, the quicker you can learn how to be successful. The fastest way to enter new markets is to partner with a company like Horizons who can ensure local hiring compliance (because as an EOR, Horizons would be legally responsible for such matters).

Cost:
IVC could have chosen to set up a local entity, but this would have required serious time and financial burdens. IVC would have need to hire a local HR and legal back-office just to employ a small team of salespeople. They decided to go with the smart option and use an EOR.

Risk:
Compliance burdens when entering new markets are serious. Mistakes can mean delayed company openings, damaged relationships with employees, and massive fines. By partnering with Horizons in Australia, IVC avoided the risks typically associated with new international hirings in unfamiliar jurisdictions.

Efficiency:
There is already ramp-up time when hiring new employees—not to mention new offices. When starting in new, unfamiliar markets it can take many months to become efficient (after waiting months to be able to hire). When IVC no longer had to worry about local laws, taxes, or cultural / language issues when handling HR matters, they were able to scale their efficiency much more quickly.