Many digital technology companies today show the tendency to go global. There obviously are many advantages of going global, and that’s what makes companies take such a step.
For technology companies, unlike companies that deal with physical products, it’s rather easy to have a global presence. Choices, at all levels, are multifaceted while there is the option to have and retain exceptional talents in the workforce on a global level itself, with minimum hurdles (especially caused by immigration laws and other such things). The possibilities of having a worldwide customer presence is also an added advantage. A company which has a global presence also has the freedom to choose between the regulatory laws of different countries, and there are some benefits relating to taxes as well. Let’s analyze, in detail, the advantages that a digital technology company can have today by maintaining a global presence. Here we go:
Global presence gives increased brand recognition & credibility
A global presence gives a company increased brand recognition as well as credibility, which comes not just from the customers, but also among the general public and competitors. Nowadays, companies try to maintain a global presence by at least maintaining registered agent offices in different countries by proxy to start with. This kind of registered agent office gives a company a legitimate office address, mail forwarding etc even without anyone having to set foot on the country where this is worked out. Later, upon developing further, the company could go on and have full-fledged offices in different countries. Customers, as well as the general public, obviously are impressed by the kind of presence that the company has in different nations and this contributes directly to an increase in credibility plus an enhanced brand recognition.
A global presence could ensure better tax benefits
There are countries that offer different kinds of tax benefits for companies that operate there. Ireland, for example, offers tax reliefs for qualifying R&D businesses and to avail of these benefits, having a registered agent address is enough. There are many such benefits that companies can have by maintaining a transborder presence.
A global presence sometimes helps do away with hassles pertaining to regulations and compliance
Sometimes hassles pertaining to regulations and compliance would prove to be a headache for businesses, especially in the initial stage. They might not be able to afford to go for things that are mandatory for compliance as per existing regulations in the country where the company intends to set up its base. In such a situation, shifting base to another country may ease the situation a bit. However, at a later stage, after developing further, the company can shift back to its original country and adopt the things that are mandatory for compliance. We’d say that it’s always good to follow the regulations and do what all is necessary to achieve compliance since it concerns the security of the business and hence is critical.
Having a global presence helps acquire and retain talent worldwide
A global presence means the ability to acquire and retain worldwide talent, which would directly boost productivity, for any company. This also helps companies hire and retain talented professionals in other countries even if there are immigration law-related restrictions prevalent in the country where they are headquartered. Many US companies thus have employees on their payroll in countries like the U.K, Australia and Canada. It also helps companies save money as they can retain talented professional by paying lesser salaries, in accordance with the pay standards prevalent in the countries where they hire talents.
A global workforce helps ensure diversity
A global presence means a global workforce; having a global workforce helps ensure real diversity, in many ways. The products that a company with global workforce manufactures would undoubtedly be enriched as a result of the collaboration that happens from across borders. Similarly, the presence of a global customer base also bestows upon a company an aura of diversity, which works in its favor in a great way.
Postscript- Having a global presence is undoubtedly good, but it could have its disadvantages too. It’s up to the company in question to ensure that it makes use of the advantages of its global presence and negates the disadvantages, if any.