Many people mistakenly believe that outsourcing and outstaffing are the same thing, or that they are so identical concepts that in fact they have no difference and it doesn’t matter which of these you apply to your company. This is a totally wrong opinion. Yes, one can agree with the idea that these are indeed similar concepts that have much in common with each other, however, there are significant differences that create a difference between two similar concepts.
Today we will study outstaffing in more detail and talk about all the intricacies of this method. But first, let’s answer some of the most important questions. Firstly, what is outstaffing, and secondly, how does it differ from outsourcing.
Let’s understand the terms
The term Outstaffing, just like outsourcing, is used to define the type of relationship between the company and the employees who work in it. But we are not talking about the main staff, but secondary, which in fact performs non-primary tasks. The important difference is that in the case of outstaffing, you have contact with someone who works for you as a contractor. You are completely free from any formalities. But outsourcing implies a more limited type. Since the relationship with the employee is carried out through the manager.
How does the mechanism of starting work in any company of a specialist from an outstaffing company work?
To begin with, when a client company applies for services, indicating certain characteristics and requirements (type of specialists, special knowledge of technologies, skills, time to complete, etc.), the contractor company selects a professional and concludes with him an official contract-agreement on work for both parties. In turn, the customer pays the amount set, and the one who is hired to work fulfills the requirements.
From a factual point of view, a specialist has official relations with the company with which he entered into an agreement (that is, with outstaffing), however, since the customer runs the process and sets goals and objectives for the employee, business relations also extend to the second side.
IT Outstaffing is a great solution with lots of benefits.
- Ease of recruitment is one of the first benefits you will encounter when choosing outstaffing. All this happens due to the fact that the employee entered into all official agreements with the contractor company, that is, you are completely isolated from this issue and have nothing to do with it (what a joy, usually this is so much paperwork!)
- Since we have already talked about paper, it is worth noting that your accounting will cease to be loaded for the same reason (official contract). Surprisingly, one paper that you have nothing to do with can solve so many problems.
- In addition to everything else, the solution of financial affairs is also reduced. Taxes, various fees, payroll all this lies on the shoulders of the outstaffing company.
- It is important to understand that this type of worker will greatly help you quickly form a team to translate the project into reality.
- By the way, another leading advantage. Outsourcing is much more expensive than outstaffing.
If there are pluses, then of course there is a place for minuses. But it is difficult to call them as such, since it is most likely more like difficulties that, with a skillful and competent approach, can be overcome.
- More responsibility than usual. I think if you still own a company this is not such a problem, but it is recommended to have experts next to you who will help you make rational decisions.
- There are times when employees from an outstaffing company lose their mood and motivation, and this can develop into an unsatisfactory result. Therefore, in the first paragraph, it is mentioned about the greater responsibility that is assigned to your company.
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