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What are outsourcing and outstaffing?

What are outsourcing and outstaffing?

Video: Why you'd prefer outstaffing above outsourcing and in-house hiring? 2024, July

Video: Why you'd prefer outstaffing above outsourcing and in-house hiring? 2024, July
Anonim

Even if you have been quietly working in the same organization for many years, you may well be an outsourcer at the same time or participate in the outstaffing process

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So, outsourcing is an old and familiar concept for our businessmen. Outsourcing is given to many activities that are not basic to this particular company. That is, outsourcing is the transfer of non-core functions or processes for a company to be performed by a third-party organization that specializes in this. Outsourcing companies can be delegated a lot - from cleaning services (concluding an agreement with a cleaning company) to accounting services and the work of a system administrator. The benefit of such delegation is obvious - you can hire an experienced specialist who will perform the entire amount of work, but the fee for this work will be much less than if a staff rate were opened or a department was formed.

Outstaffing is a bit like outsourcing. In this mechanism for organizing work with personnel, third-party companies are also used, but in fact it is simply the withdrawal of personnel for the staff. That is, the executors are on the staff of the executing company, but they actually work for the customer company. Outstaffing is synonymous with staff leasing or staff rental.

So, the difference between these two concepts is that outstaffing differs from outsourcing in the relation of the customer to the personnel performing the work. In the first case, the staff is directly subordinate to the customer, and the contractor only selects the staff and draws it up in accordance with the law, while outsourcing focuses on the performance of work, without strict requirements to the staff and the workplace of the staff on the part of the customer.

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