Recent economic policy shifts have focused on U.S.- Central Asia trade relations — and those changes promise to have an impact on tech companies hiring remote talent in the region.
U.S. Secretary of State Marco Rubio recently visited Uzbekistan for the C5+1 diplomatic forum to meet with Central Asian countries and discuss security and trade. This represents a positive step forward for the economies of multiple countries in the region that include Uzbekistan, Kazakhstan, Kyrgyzstan, Tajikistan, and Turkmenistan in how they trade with the United States.
U.S.-based tech companies that have been hiring remote talent from Central Asia for years with the help of employer of record providers like Truss want to know — what does increased U.S.-Central Asia trade mean for tech companies hiring in Central Asia?
READ MORE: How To Choose an Employer of Record for Your Tech Company
How Will Increased Trade Impact Tech Hiring and Outsourcing in Central Asia?
Increased U.S.-Central Asia trade promises to be in the future after Secretary Rubio’s recent trip to Samarkand, Uzbekistan for the C5+1 forum. The visit highlighted increased interest in improved U.S.-Central Asia trade relations and economic policy that would benefit both the United States and the countries of Central Asia.
“The United States wants to be a strong partner in Central Asia…Central Asia has just not gotten the level of attention from our policymakers over the last 20 years that it deserves. But that’s changing. That’s why we’re here now.” – U.S. Secretary of State, Marco Rubio
The rapid growth of the tech industry has made Central Asian countries a valuable partner for trade relationships in the United States, and an incredible opportunity for tech startups. With this reality, and renewed focus from the United States government, tech companies can expect to see changes to the industry.
1. Increase in Digital Infrastructure and AI Integration
Joint trade agreements between the United States and Central Asia targeting the growth of digital infrastructure and Artificial Intelligence (AI) development and integration promise to impact tech companies hiring in the region. The digital security commitments that were secured at the C5+1 forum have been put in place to finance data centers, AI frameworks, and telecommunications. This benefits tech companies by creating a deeper talent pool of trained engineers, cloud specialists, and data analysts, and creates opportunities to partner with Western tech supply chains.
2. Increased Competition for Talent
U.S.-based tech companies that have hired tech talent in Central Asia in the past have had limitless access to the talent and skills they need — but with increased focus on the tech industry in the region, tech companies will likely see increased competition for top talent. A key benefit to hiring talent in Central Asia is employee salaries that are much lower than in the United States. With increased competition for talent, U.S.-based tech companies can expect to see increased salaries. With an employer of record provider that has in-depth knowledge of Central Asia, hiring tech companies already have a foot in the door with top talent and can negotiate competitive salaries.
3. Leverage Government Tax Incentives and Technology Parks
Tech-focused government initiatives in Central Asian countries — like the IT Park in Uzbekistan and High Technology Park in Kyrgyzstan — provide corporate tax, income tax, and customs exemptions for hiring tech companies. U.S.-Central Asia trade agreements promise to reinforce the benefits of working and hiring in these economic zones for companies that choose to take advantage of these incentives.
4. Additional Compliance Challenges
Legal compliance with local labor laws is always a challenge for hiring tech companies — but those challenges could become more complicated with new U.S.-Central Asia trade agreements in place. Many countries in Central Asia will need to balance U.S. trade regulations with Chinese tech agreements to operate within the structure of multiple foreign policies. U.S.-based tech companies must be able to navigate compliance for technology transfer limits, localization quotas, and data sovereignty changes. This is where an experienced employer of record will prove to be a real asset for hiring companies, taking on legal responsibility and helping companies navigate these additional compliance challenges.
READ MORE: Is It Time to Find a New Employer of Record?
How Truss Benefits Tech Companies as Your EOR
U.S.-based tech companies interested in hiring talent in Central Asia can expect to see a wide range of changes to the economic and legal landscape with increased trade relations. Truss may prove to be a real asset for hiring companies as an experienced employer of record in Central Asia with owned entities in multiple countries.
Tech companies that want answers to the question — what does increased U.S.-Central Asia trade mean for hiring tech companies — may find that Truss can provide a solution. With Truss as your employer of record, you gain in-depth knowledge of a deep talent pool, legal protection when labor laws change, help navigating employee contracts and salaries, and a partner to help you take advantage of government tax incentives in the tech industry.
Contact Truss today to learn more about our employer of record services!
