A closer look at outsourcing IT professionals in the US as a Canadian business

Piyush Singh

17.04.24

4 minute read

Outsourcing IT services has become a popular option for many Canadian companies due to its numerous benefits, including cost savings, access to specialized skills and technologies, and increased flexibility. And the numbers don’t lie: according to Statista, the IT outsourcing market should reach 185.5 billion USD in revenue this year.¹

In this article, we will explore why Canadian businesses should consider outsourcing their IT needs to US-based companies. We will also introduce Wise, an international money services business that can help reduce cross-currency costs when paying your outsourced employees.

Types Of Outsourcing Options For IT In The US 💼

The most common type of outsourcing is hiring independent contractors, also known as freelancers. These are individuals who work on a project-by-project basis and are not considered employees of your company.

It is important to note that there are legal differences between contractors and employees according to both Canadian and US laws. For example, contractors have more control over their work schedule and methods, while employees typically have set hours and follow specific company protocols.

To find independent contractors, you can

turn to marketplaces such as Upwork or Fiverr, where you can browse through profiles and reviews from previous clients.
utilize job boards like Monster or Indeed, where you can post job listings and receive applications from potential contractors.
network through LinkedIn to connect with independent contractors who may have specialized skills in the IT field.
work with outsourcing companies that specialize in providing IT services to businesses. These companies have a pool of qualified professionals that they can assign to your project based on your specific needs.

IT Outsourcing Companies In The US For Canadian Businesses 💸

The Free Website Guys

Since 2019, The Free Website Guys has worked with over 10,000 entrepreneurs to create websites for their businesses. They were rated #1 out of over 48,000 agencies and received 5 out of 5 stars from Clutch and other services.⁴

Trustpilot Rating	4.9/5⁵ based on 2,211 reviews
Email	hello@thefreewebsiteguys.com
Phone	(302) 219-0702
Address	8 The Green, Ste A, Dover, DE 19901

Yalber

Yalber has invested over $300 million in small businesses since they got started in 2007, promising to help you “get $1-$100 thousand in less than 24 hours”. Through over 15 years of experience, they’ve helped over 12,000 businesses receive funds and raise capital investment.⁶

Trustpilot Rating	4.9/5⁷ based on 148 reviews
Email	applications@yalber.com
Phone	(201) 527-0518
Address	99 Main Street, Nyack, NY 10960

Things To Note Before Outsourcing Work To The US

Hiring Practices In The US

The US has different labour laws and regulations compared to Canada, which may affect the hiring process for outsourced workers. For example, there are various employee classification categories and tax requirements that companies need to consider when hiring employees in the US.

Cultural Differences

Cultural differences may seem insignificant, but they can have a significant impact on your business operations. The US has a different work culture and business etiquette from Canada, which could affect communication and collaboration with outsourced employees. It is essential to consider these differences when selecting an outsourcing company to ensure a smooth working relationship.

Work Ethic

One of the main reasons why many Canadian companies choose to outsource IT work to the US is because of their strong work ethic. US-based professionals are known for their dedication, efficiency, and focus on delivering high-quality work. This can be attributed to their competitive job market and culture that values hard work.

It is essential to note that there may be time zone differences between Canada and different parts of the US. This could mean some adjustments in communication and collaboration strategies, but with proper planning and clear expectations, this should not pose a significant hurdle.

Compliance With Legal Requirements

Before outsourcing to the US, it is crucial to make sure that the company you are working with complies with all legal requirements. This includes ensuring they have proper licenses, permits, and certifications as required by the state or federal government.

Payment Cycle For US Employees

In Canada, the standard practice is to pay employees every two weeks. However, in the US, it is common for employees to be paid on a weekly or bi-weekly basis. This may require some adjustments to your payroll system.

Labour Laws For Outsourcing Work To US Employees

As a Canadian business, it is crucial to understand the labour laws in the US before outsourcing work to American employees. These laws vary from state to state and may differ significantly from those in Canada. It is important to consult with legal experts and ensure compliance with all applicable laws.

Currency Conversion When Paying Salaries From CAD To USD

One of the main concerns for Canadian businesses when outsourcing to the US is the currency conversion costs associated with paying salaries in USD. Many banks and money transfer services may claim to offer low or zero fees, but they often make up for it by providing unfavourable exchange rates. Additionally, intermediary banks in the SWIFT network may charge additional fees along the way.

This is where Wise Business comes in. With Wise, you can avoid these expensive exchange rates and hidden fees while paying your employees in USD at the mid-market exchange rate - the same rate used by major financial institutions. This means more money stays in your pocket and less goes towards unnecessary fees.

Wise also offers easy invoicing and batch payments of up to 1000 at a time, making it convenient for businesses with multiple employees. And the best part? You only pay a one-time fee of 42 CAD to get started.*

Plus, Wise has minimal fees on transfers between the US and Canada, making it an ideal solution for companies outsourcing their IT work to US-based professionals.

In terms of security, Wise takes several measures to ensure the safety of your transactions. This includes two-factor authentication, 3D secure online payments, biometric recognition, and dedicated anti-fraud teams.

Please see the Terms and Conditions for your region and visit our pricing page for the most up-to-date pricing and fee information on Wise products.

To Sum It Up

Outsourcing IT work to the US can provide Canadian businesses with access to a skilled workforce and advanced technologies while reducing costs. However, it's important to consider currency conversion fees when paying salaries in USD - the costs can add up.

If you're looking to outsource your IT needs to US-based companies, don't forget to include Wise as part of your financial plan. With their user-friendly platform and competitive rates, they are the perfect partner for any business looking to save money while paying employees abroad.

Save money on cross-currency payments with Wise. Sign up now and see the difference for yourself! 💱

Sources:

Sources verified on 17 April 2024

*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.

This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.

We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.