Globalization and technological advancements, accelerated by remote pandemic work, have allowed US tech companies to rapidly expand their operations in other parts of the world, employing outsourced remote teams to support their growing technical infrastructures, client bases and operations. 

However, there are going to be instances when hiring some of those contract workers as full-time employees and bringing them physically closer to the US is desired — whether that’s to have them based in a more suitable time zone to better collaborate with team members, better serve clients, or retain them full-time as top tech talent.

Historically, these tech workers would be invited to come to the US on an H-1B visa. But unfortunately this is becoming an increasingly expensive and time-consuming option with lower and lower rates of success. Indeed, candidates have just a 30-40% chance of being selected to the H-1B visa lottery, and ever-growing permanent residency waitlists to contend with, particularly for Indian and Chinese nationals.

That’s why many US-based tech companies are looking North as a back-up plan, indeed with many making Canada their “plan A.” Canada offers a simpler alternative for US tech companies to hire foreign-born tech workers, allowing those individuals to receive work permits in weeks, avoid the uncertainty of a lottery, and have a clear path to residency and citizenship, if desired.

In this article, we will explore the reasons why US tech companies with outsourced global teams are increasingly relocating top tech talent straight to Canada and skipping US immigration altogether when bringing them on full-time.

US tech companies have remote teams across the globe

Two-thirds of all Fortune 500 companies now have some international presence as businesses enjoy a wider talent pool and the convenience of having a team based across multiple time zones. Many of them work with outsourced developers who are contractors but are not employed by these US-based tech companies.

In the past, only large US companies with ample financial resources were able to access the benefits of remote tech teams. But that’s no longer the case, with small to mid-size businesses now being able to take advantage of having an “international presence” through outsourced tech talent in various parts of the world.

It’s particularly common for US-headquartered tech companies to work with large tech teams or departments based out of India (which has even been called “the world’s IT powerhouse”), as well as China, Eastern Europe, and Latin America, all of which are big markets and rapidly growing technological hubs. 

This is a trend that shows no sign of slowing down as the global tech industry continues to expand. But what happens when a company needs to hire some of its crucial outsourced tech talent full-time and bring them closer to US headquarters?

Bringing remote tech staff from overseas into the US can be difficult, here’s why

It’s not uncommon for companies to want to bring on tech contractors closer full-time and relocate them to or nearby their US offices. To do so, US tech companies would traditionally use the US immigration system, most commonly applying for the H-1B temporary work visa.

But the H-1B process is not cheap, as petitions cost thousands of dollars between filing and legal fees with no certainty of being chosen in the H-1B lottery. Moreover, the odds of being selected for an H-1B visa have decreased significantly in recent years, and a growing number of applicants are left without an H-1B visa, even if they have been offered a job in the United States.

Even if a candidate is selected in the H-1B visa lottery, applying is a headache, they may need to wait for months for approvals, and later face excessively long wait times to obtain a green card (US permanent residency), especially if they are Indian- or Chinese-born. Indeed, the wait time for an employment-based green card can be several years — or in some cases decades — with Indian nationals facing the longest wait times due to country-specific quotas.

Canada offers immigration solutions for tech workers

Fortunately, Canada is a great alternative for companies that want to bring skilled tech workers onboard and into North America. It’s a much quicker and more straightforward immigration process for employers, and tech workers can benefit from Canadian permanent residency, which these tech professionals are often eligible to apply for after just one year, and which offers a lot of perks.

The best part is that US tech companies don’t need to have an established entity in Canada either to hire there remotely. Instead, they can partner with an Employer of Record (EOR), an increasingly popular method for globally-minded companies to expand into other countries with the risk associated with creating their own legal entity. In this case, working with an EOR enables US-based companies to hire workers remotely without needing an office or legal presence.

The EOR effectively places the employee on the EOR’s Canadian payroll while the American company stays in control of job duties, pays their salary, provides benefits and otherwise fully dictates the job itself.

How does this work in Canada?

Canada has multiple immigration pathways to make this work.

1) Hire your tech worker in Canada via the Global Talent Stream 

The Global Talent Stream (GTS) is a quick way of hiring foreign workers for specialized jobs, and is currently one of the world’s fastest immigration pathways for tech workers. It offers a simple and efficient process to obtain permanent residency in Canada. Within about two weeks, a candidate can obtain authorization to work in Canada. A few weeks later, they can obtain a Canadian work visa and can move to Canada and start working. 

2) Your new full-time tech employee can get permanent residency 

After qualifying for the GTS, it’s possible to become eligible for Canadian permanent residence within just one to two years. There are many benefits to becoming a resident of Canada including a lower cost of living, access to free healthcare, and a thriving economy. For many, however, the most important benefit is the stability of permanent residency in Canada, and thus North America, as compared to the relative uncertainty of the H-1B visa and subsequent Green Card process in the US.

3) They can qualify for Canadian citizenship in about five years

Eligibility for citizenship in Canada is available within about five years. This can open many doors to individuals as dual citizens and enables US tech companies to use a number of “boomerang strategies” if they still ultimately want that tech worker based in the US.

Syndesus can help bring your remote tech workers to Canada

Whether you have an office in Canada or not, Syndesus can help you hire or move your skilled tech workers to Canada. You can bypass the uncertainty, lottery, backlogs and instead, hire and retain all the skilled tech employees you need, remotely in Canada. 

As an EOR, Syndesus can legally hire your current or prospective employee in Canada while taking care of the immigration, billing, HR, legal and other paperwork. 

Reach out to us to learn more about how we can help you hire and retain talent remotely in Canada!