How Locomote Scaled Globally Without Borders Using Employer of Record (EOR) Services
Author: Phil Murphy
Last Updated: May 27, 2026
Locomote, a growing travel management platform, needed to integrate an existing offshore workforce after securing a partner distribution deal. The company had 12 contractors in the Philippines and 9 professionals in India already contributing to its operation, but it did not have local legal entities in either country.
The challenge was not finding talent. It was retaining experienced people, formalising the right working arrangements and supporting international growth without creating unnecessary local entity overhead.
Smart Outsourcing Solution supported Locomote through a multi-country workforce transition. In the Philippines, 12 existing team members moved onto formal employment contracts through SOS’s local entity. In India, 9 professionals were retained through a separate contractor arrangement described in the original case study.
Direct answer: Locomote scaled internationally by transitioning 12 existing Philippine team members onto formal employment contracts through SOS’s local entity, while retaining 9 India-based professionals through a separate contractor arrangement. The published SOS case study reports that the 21-person transition was completed in three weeks with no reported staff attrition during or after the migration.
For companies facing a similar challenge, Locomote demonstrates how an Employer of Record can support dedicated Philippine employment while a wider international workforce may require different structures in different countries.
TL;DR: How Did Locomote Scale Globally Using EOR Services?
| Question | Answer |
| What challenge did Locomote face? | It needed to formalise arrangements for 21 offshore professionals in the Philippines and India without establishing local entities. |
| How was the Philippine team structured? | Twelve Philippine team members moved onto formal employment contracts through SOS’s local entity. |
| How was the India-based team structured? | Nine India-based professionals were retained through a separate contractor arrangement described in the original case study. |
| How long did the transition take? | The published SOS case study reports that the transition was completed in three weeks. |
| What outcome was reported? | SOS reports that all 21 professionals were retained and payroll was delivered accurately during the migration. |
| Why is this relevant to other businesses? | It shows how an existing Philippine offshore team can be formalised through EOR-supported employment without immediately establishing a local entity. |
What Challenge Did Locomote Face While Expanding Globally?
Locomote had reached a stage where international talent was already contributing to the business, but the workforce structure needed to support the company’s next phase of growth.
Following a partner distribution agreement, Locomote inherited:
- 12 contractors based in the Philippines.
- 9 professionals based in India.
- An offshore team already familiar with the business.
- No local employing entity in either country.
Replacing established team members would have risked losing operational knowledge and disrupting delivery. Establishing new legal entities in each country would also have introduced additional setup, payroll, administration and ongoing compliance responsibilities.
Locomote therefore needed a practical structure that could:
- Retain existing offshore talent.
- Formalise employment for its Philippine team.
- Maintain operational continuity.
- Support payroll and workforce administration.
- Avoid unnecessary entity setup at that stage of growth.
- Provide a clearer foundation for future international scaling.
For businesses planning a similar structure, the broader starting point is understanding how to build an offshore team in the Philippines around roles, management responsibility and the appropriate hiring model.
How Did Locomote Use EOR Services in the Philippines?
In the Philippines, Locomote needed a formal employment route for 12 existing offshore team members without first establishing its own local employing entity.
SOS supported the transition by moving the 12 Philippine team members onto formal employment contracts through Global BPO Solution Philippines Inc., the local SOS entity identified in the original case study.
This enabled Locomote to retain people already contributing to the business while placing the Philippine team within a formal local employment structure.
What Did the Philippine EOR Transition Address?
| Requirement | How the EOR Structure Supported It |
| Talent retention | Existing Philippine team members could transition rather than being replaced |
| Formal employment | The 12 workers moved onto local employment contracts |
| Local entity requirement | Locomote did not need to establish its own Philippine employing entity at that stage |
| Business continuity | Existing responsibilities could continue during the transition |
| Employment administration | Payroll and agreed local employment processes could be supported through the EOR structure |
An EOR model is most relevant where an international business wants dedicated Philippine employees working within its operation, while a local provider manages agreed employment administration.
Businesses comparing this structure can review Employer of Record services in the Philippines for the key employment, payroll and onboarding considerations.
How Was the India-Based Team Structured?
The original Locomote case study states that the 9 India-based professionals were retained through independent contractor agreements administered through Global BPO Solution, the regional entity identified in the published page.
This distinction is important because the wider engagement was not described as a single EOR arrangement covering every team member in every country.
| Country | Team Size | Structure Described in the Published Case Study |
| Philippines | 12 professionals | Formal employment contracts through SOS’s Philippine local entity |
| India | 9 professionals | Independent contractor agreements administered through the regional entity identified in the case study |
For businesses managing teams in multiple countries, one workforce structure may not fit every jurisdiction or working relationship. Each country should be assessed according to the nature of the role, the level of management control, the intended working arrangement and the applicable local requirements.
What Outcomes Are Reported in the Published Locomote Case Study?
The published SOS case study reports the following engagement outcomes. These results describe the Locomote engagement as recorded by SOS and should be supported by internal documentation before publication where required.
| Reported Outcome | Detail |
| Transition timeline | The 21-person workforce transition was completed in three weeks |
| Team retention | SOS reports 100% retention during and after the transition |
| Payroll continuity | SOS reports 100% payroll accuracy during the migration |
| Administrative impact | Locomote reduced the internal burden associated with managing international workforce administration |
These outcomes matter because workforce transitions are not successful simply because contracts are issued. A successful transition must also preserve employee confidence, payroll continuity, operational knowledge and service delivery.
In Locomote’s case, the reported result was that the business could continue working with its offshore professionals while putting a clearer structure behind the Philippine team.
Why Was EOR Relevant to Locomote’s Philippine Team?
Locomote already had Philippine professionals contributing to the business. It did not need to restart recruitment; it needed a structure for retaining and formalising the team.
For the Philippine component of the transition, an EOR structure helped address four practical requirements:
- Retention: Locomote could continue working with people already familiar with its operation.
- Formalisation: Existing Philippine team members moved onto formal employment contracts.
- Continuity: The transition was designed to avoid disruption to ongoing work.
- Scalability: Locomote gained a clearer foundation for managing Philippine employment as the business expanded.
This is a common growth-stage challenge. Companies may begin with contractors or an inherited offshore team, then later require a more structured employment model once those individuals become increasingly embedded in the business.
Offshore Hiring in the Philippines vs EOR: What Is the Difference?
Offshore hiring in the Philippines refers to the broader strategy of accessing Philippine talent for an international business.
An Employer of Record is one possible employment structure within that strategy. It may be relevant when a company wants dedicated Philippine employees working within its business but does not want to establish its own local employing entity at the outset.
| Model | What It Typically Means | When It May Fit |
| Employer of Record | A local provider employs dedicated staff while the client manages daily work | Businesses hiring or retaining integrated Philippine employees without initial entity setup |
| Staff Leasing | A provider supplies dedicated staff, sometimes with facilities or operational support | Teams requiring dedicated capacity plus local support |
| BPO | A provider manages a defined function and delivers agreed outcomes | Businesses outsourcing measurable processes |
| Local Entity | The overseas company establishes its own employing presence | Larger long-term operations with sufficient scale |
| Contractor Engagement | Independent professionals deliver services under a contractor arrangement | Genuine independent work that does not operate as employment |
Locomote’s Philippine transition is relevant to the EOR question because the company retained 12 existing professionals through formal local employment contracts rather than replacing the team or immediately establishing its own Philippine employing entity.
For a direct model comparison, see EOR vs Staff Leasing vs BPO: Which Model Fits a Start-up?.
What Is the Best Way to Retain or Hire Offshore Staff in the Philippines?
The right hiring structure depends on whether a business is recruiting new employees, transitioning existing contractors or integrating a workforce acquired through a partnership or business change.
1. Confirm Whether the Work Is Ongoing and Integrated
An EOR model may be more relevant where the individual:
- Works consistently for the business.
- Uses the company’s systems or processes.
- Reports to internal managers.
- Performs an ongoing operational role.
- Needs structured payroll and employment administration.
- Is expected to remain part of the long-term team.
2. Assess the Value of Existing Team Knowledge
Existing offshore professionals may already understand the company’s customers, tools, workflows and operating priorities.
In Locomote’s case, the primary issue was not whether the team could perform the work. It was how to retain that capability while moving to an appropriate structure for continued growth.
3. Assess Each Country Separately
A company operating across multiple markets should not assume that the same workforce structure is automatically appropriate in every country.
The Philippines component of Locomote’s transition used formal employment contracts through SOS’s local entity. The India-based component used a different contractor structure described in the original case study.
4. Plan the Workforce Transition Carefully
A practical transition plan should address:
| Transition Area | What to Confirm |
| Existing roles | Who is transitioning and which responsibilities must continue |
| Proposed structure | Employment, contractor or managed-service model by country |
| Contract timing | Issue dates, acceptance process and start dates |
| Payroll cutover | First payroll cycle, documentation and employee communications |
| Benefits and entitlements | What applies after transition and when it begins |
| Data and systems | Access permissions, confidentiality and security requirements |
| Team communication | How changes are explained to affected workers |
| Business continuity | How disruption is prevented during migration |
5. Prepare for Future Scale
Once an offshore team grows, businesses typically need clearer reporting lines, onboarding procedures, role definitions, documentation and performance management.
Companies moving from an inherited workforce or small initial team into a more structured operation should review how to scale offshore teams in the Philippines.
What Roles Can an EOR Support in the Philippines?
An EOR structure is generally most relevant for dedicated professionals who need to operate as part of the client’s business.
Depending on business requirements, roles may include:
| Function | Example Roles |
| Customer operations | Customer support specialist, customer-success coordinator |
| Technical operations | Technical support professional, QA tester, implementation specialist |
| Software and data | Developer, data analyst, reporting specialist |
| Finance and administration | Accounts support officer, payroll assistant, operations coordinator |
| Leadership support | Executive assistant, project coordinator |
| Marketing and commercial support | Marketing assistant, CRM administrator, sales support specialist |
The relevant question is not only the job title. It is whether the individual needs to be integrated into daily operations, managed internally and retained as part of a longer-term offshore team.
What Risks Should Companies Review Before Transitioning Existing Offshore Staff?
Moving from an informal, inherited or contractor-based workforce arrangement into a more structured model requires careful planning.
Worker Classification Risk
Where contractors operate in a way that resembles employment, businesses should assess whether the existing structure remains appropriate. This can be particularly relevant where workers are dedicated, closely supervised or deeply embedded in daily operations.
Payroll and Benefits Continuity
Team members need clarity on pay timing, employment terms, leave, benefits and any change in administrative process. Poor communication can create unnecessary retention risk.
Country-by-Country Structure
A workforce arrangement suitable in the Philippines may not be appropriate in India, Australia, the UK or another market. Multi-country teams should be evaluated location by location.
Intellectual Property and Confidentiality
Offshore professionals may access customer information, internal tools, commercial data or proprietary systems. Contracts and operational controls should address ownership, confidentiality and offboarding.
Operational Disruption
A poorly planned migration can interrupt delivery and reduce confidence across the team. Transition planning should prioritise critical responsibilities, payroll timing, system access and management communication.
What Can Growing Businesses Learn from Locomote?
Locomote’s published case study demonstrates that companies can formalise an existing offshore workforce without rebuilding the team from the beginning.
The practical lessons are:
- Existing offshore professionals may be worth retaining when they already hold operational knowledge.
- EOR can support formal employment for dedicated Philippine team members without immediate client entity setup.
- A multi-country team may require more than one lawful engagement structure.
- Payroll continuity and clear employee communication are central to retention.
- A workforce transition should protect delivery, data access and business knowledge.
- Reported speed is valuable only when the underlying structure is appropriate for each country and role.
Locomote is therefore a useful example for companies that inherit offshore workers, grow through partnerships or need to formalise an international team already contributing to the business.
Frequently Asked Questions
How did Locomote scale globally using Employer of Record services?
Locomote worked with SOS to transition an existing offshore workforce. In the Philippines, 12 team members moved onto formal employment contracts through SOS’s local entity. In India, 9 professionals were retained through a separate contractor arrangement described in the published case study.
How many offshore team members were included in the Locomote transition?
The published SOS case study identifies 21 professionals in total: 12 based in the Philippines and 9 based in India.
How long did the Locomote workforce transition take?
The published case study reports that the full 21-person transition was completed in three weeks.
Did Locomote use EOR for all 21 offshore professionals?
No. The published page states that the 12 Philippine team members moved onto formal employment contracts through SOS’s local entity. The 9 India-based professionals were engaged through a separate contractor arrangement.
Why did Locomote use an EOR structure in the Philippines?
Locomote needed to retain existing Philippine team members and formalise their employment arrangement without establishing its own local employing entity at that stage of its growth.
Can an EOR help transition existing Philippine contractors into employees?
An EOR may support a company transitioning suitable existing Philippine team members into formal employment, depending on the roles, proposed working relationship, documentation and applicable local requirements.
What is the difference between offshore hiring and using an EOR in the Philippines?
Offshore hiring is the broader strategy of accessing Philippine talent. EOR is a specific employment structure in which a local provider employs dedicated staff while the client generally manages their daily work.
What should a company check before selecting an EOR provider?
Companies should review the provider’s local employment structure, payroll processes, employee-benefit administration, reporting, data-security controls, intellectual property terms, transition support, notice provisions and ongoing account-management responsibilities.
For wider employment and offshore hiring questions, review the Global Hiring FAQs.
Final Thoughts: Formalising an Offshore Team Without Slowing Growth
Locomote’s offshore professionals were already contributing to the business. The challenge was creating a structure that could retain that capability while supporting continued international expansion.
In the Philippines, EOR-supported employment enabled Locomote to move 12 existing team members onto formal local employment contracts without establishing its own employing entity. Across the wider workforce transition, SOS reports that 21 professionals were transitioned within three weeks, with full retention and payroll continuity during the migration.
For growing companies, the lesson is practical: international expansion becomes easier to manage when workforce structure, employee continuity and payroll administration are addressed before operational complexity becomes a barrier.
Transition an Existing Philippine Team Without Setting Up an Entity
Already working with contractors or offshore professionals in the Philippines? Smart Outsourcing Solution can help you assess whether an EOR-supported employment structure fits your roles, timeline and operating requirements.
Discuss your Philippine team transition with Smart Outsourcing Solution
About the Author
Phil Murphy is a founding partner of Smart Outsourcing Solution (SOS) with extensive experience in offshore staffing, Employer of Record services and remote team operations. He advises international businesses on workforce structure, offshore hiring and scaling distributed teams in the Philippines and across Southeast Asia.