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The potential international professional employer organization (PEO) market is estimated to be worth about $8.8 billion per year, according to new research from Stipenda, a Boston-based company that supports U.S. PEOs.
The National Association of Professional Employer Organizations (NAPEO) estimates that around 2.5 million people across the U.S. are currently part of a PEO arrangement. Meanwhile, there are currently more than 13 million people employed outside of the U.S. by American companies, according to Stipenda. If a similar proportion of these were to be covered by PEOs as are currently covered in the domestic market, this would total around 240,000 people and could be worth as much as $8.8 billion in gross annual revenue.
“The international employment market has been largely untapped by PEOs so far, but I expect that to change,” said Solomon Williams, CEO. “With the rapid globalization of business, even small- and medium-sized companies need to look to foreign markets. The opportunities are there but multiple logistical challenges remain, and firms will need the support of employer organizations to address them.”