Consolidating Entities: How An International IT Company Achieved Significant Cost Savings with Atlas

Industry: IT services 

Global HQ: United Kingdom 

Worksite employees: 50+  

Key Benefits of Working with Atlas  

• Reduced administrative and operational costs 

• Centralized people operations 

• Customized transition plan 

• Workforce scalability and flexibility 

About 

This client, a multinational IT company with operations dispersed across several countries, was facing mounting pressure to reduce its costs and enhance efficiency amid a rapidly changing business environment.   

Specific challenges for this organization included: 

• High administrative and compliance costs: Managing small employee populations in different jurisdictions resulted in high administrative overheads, particularly in terms of HR, payroll, and compliance management. 

• Complex HR and payroll processes: The organization needed separate HR and payroll processes for every entity it managed and, combined with the challenges of ensuring compliance with local labor laws, was struggling with a growing web of complexity and inflated costs.

• Inflexible workforce scaling: Legal and administrative requirements limited the client's ability to expand or contract their workforce quickly in response to market changes. 

Faced with this myriad of challenges, this company sought a more cost-effective solution to manage their international workforce compliantly. 

Atlas’ Solution 

By utilizing Atlas’ Employer of Record (EOR) services, this company was able to start closing its legal entities in countries where they had small employee populations while still retaining key talent.

Employees were consolidated into a more efficient structure that was managed under one system, with all HR, payroll, and compliance responsibilities being transferred to Atlas as the EOR partner.  

This helped the client to reduce costs associated with managing entities, including: 

• Hidden Administrative Costs: Atlas eliminated costs associated with HR software, global payroll providers, office space, and overheads.  

• Compliance and Legal Fees: Atlas mitigated risks related to compliance and legal fees, leveraging their expertise to navigate complex regulatory environments. 

• Opportunity Costs: By outsourcing HR functions to Atlas, the client was able to reallocate resources towards core business activities, driving growth and innovation. 

• Employee Turnover Costs: With improved HR management, the client experienced enhanced employee satisfaction and retention, reducing the costs associated with turnover. 

The Transition Process  

Restructuring operations can be daunting for both an organization and the employees involved, so Atlas and the client worked closely together to ensure a smooth transition of employees to the EOR service, with a focus on minimizing disruption and maintaining compliance throughout the process.  

Key steps in the process included: 

• Communication & Planning: Atlas developed a clear communication strategy, ensuring that employees were well-informed about the changes. 

• Transition and Onboarding: Employees were moved to Atlas’ EOR services, allowing the client to begin dissolving their local entities without interrupting employment. As part of this, Atlas ensured that each employee was onboarded in full compliance with local employment laws, handling all contracts and documentation. 

• Payroll & Benefits Administration: Employees continued to receive their salaries and benefits without disruption. Atlas managed the entire payroll process, ensuring compliance with local regulations.

• Ongoing Support: Atlas provided continuous support to both the client and their employees, addressing any concerns during and after the transition.  

Transitioning 50+ Employees From 10 Different Countries

Through the transition to Atlas’ EOR services, the client transferred 56 employees from 10 different countries: 

Results and Benefits  

By leveraging Atlas’ EOR services, the client achieved significant cost savings and additional operational benefits, including: 

• Operational Cost Reductions: Administrative costs were reduced, as were expenses associated with salaries, benefits, and maintaining legal entities in each country. 

• Simplified HR Management: The client centralized HR and payroll processes under Atlas, eliminating the need for in-house teams to manage HR tasks in multiple countries. 

• Compliance Assurance: Atlas ensured full compliance with local labor laws and regulations, significantly reducing the risk of legal issues and costly penalties. 

• Scalability: The client gained the ability to scale their workforce flexibly, without the administrative and legal complexities of managing multiple legal entities. 

• Employee Satisfaction: Atlas managed competitive employee benefits packages, improving retention and reducing turnover costs. 

• Cost Predictability: With Atlas, the client benefited from a clear, predictable cost structure, making budget management easier and avoiding unexpected expenses. 

Impact 

By transitioning to Atlas’ EOR services, the client achieved significant cost savings —averaging 36% across all countries — and streamlined their global HR operations.

Atlas helped the client simplify workforce management, maintain compliance, and focus on core business activities, resulting in enhanced operational efficiency and financial stability.