What is the difference between outstaffing and outsourcing?

Outstaffing and outsourcing are two terms that came from management. They appeared relatively recently - in the 90s of the XX century. It was then that the first scientific papers were published describing this form of relations between customers and contractors.

Outsourcing

The concept of outsourcing can be literally translated as “external source”. In practice, it most often means transferring the functions of certain internal units (for example, the personnel department and the accounting service) to some external executor.

Production outsourcing means the transfer of any production functions or business processes. In this case, the main goal is not to save money, as you might think with a quick analysis, but to free up resources for the development of new directions or to concentrate efforts on really important things.

Accounting outsourcing began to develop actively in 1996, when they adopted the law "On Accounting". It was this normative legal act that allowed transferring the bookkeeping to an external organization specializing in this type of service. It is worth noting that today this particular practice is very common (unlike other species).

The main problem of the development of outsourcing in the Russian Federation is the lack of a legislative framework that would regulate the relationship between customers and contractors. In the civil code this concept was not reflected. There is no clear legal structure, scientific classification of contracts, so everyone draws up such transactions, based only on their own assumptions.