The difference between outstaffing and personnel outsourcing. What are the differences between outsourcing and outstaffing in Russia. Outstaffing and outsourcing agreement

HR outsourcing and outstaffing are business technologies that can increase the profitability of an enterprise or company by optimizing the personnel structure. In both cases, the design labor relations with actual personnel differs from the traditional one, which is provided for by labor legislation. However, the use of these personnel technologies is in the area of ​​the legal framework and is accompanied by the preparation of relevant agreements.

What is the difference between outsourcing and outstaffing? Let's consider the essence of HR technologies.

Outsourcing is a formalized delegation of certain segments of the activity of a third-party company. This company independently selects personnel, finds the best options for solving the task, the report and payment for services are carried out after the work performed.

Outstaffing is the official transfer (or employment through dismissal) of part of the staff to a third-party company, when, in fact, employees continue to perform their usual duties. The contract is drawn up for the use by the customer on his territory of the contractor's personnel, without concluding any individual contracts with them.

The fundamental differences between outstaffing and outsourcing are the essence of the powers that are delegated to a third-party company. When outsourcing, the company uses the services of a third-party firm, which finds personnel on its own and assumes control over its activities. However, this is not just a “worker rental service”. Outsourcing is the transfer of part of the work under the management of a professional company.

Outstaffing does not imply any de facto changes in the work of the company. The company remains with its personnel, who are “de jure” transferred to work in another company. At the same time, employees continue to work at their workplace, according to the approved schedule and schedule.

Thus, the fundamental difference between outstaffing and personnel outsourcing is that:

• in the first case, the employer is a subcontractor who hires personnel for the duration of a specific work task;
• in the second, it uses the labor of employees on an ongoing basis, interacting with them through the outstaffer company.

It is important for a modern manager to understand the similarities and differences between the two technologies for providing an enterprise with a staffing structure. Their use increases the profitability, investment attractiveness of the business and avoids unproductive costs.

Comparison of outstaffing and personnel outsourcing

The difference between outsourcing and outstaffing in legal form and declared purposes

Comparison of the two personnel technologies allows us to note not only their differences, but also similarities. In both cases, the company that changes the labor relationship with the staff loses actual control over the process of their work.

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Outsourcing in English means the use of an external resource. Another foreign word "outstaffing" is translated into Russian as freelance.

Outsourcing and outstaffing

Most people often confuse these two terms. Staff leasing, personnel leasing, outsourcing are essentially the same thing, but there is still a difference. Let's take a closer look at outstaffing and, the differences between one and the other.

It is possible to differentiate the concepts by studying in detail the terminology of outsourcing and outstaffing. Outsourcing refers to the relationship between a customer and a supplier. In other words, in this process, the transfer and execution of tasks by the executing organization takes place. In this case, employees work for a service company and receive a salary. The customer gives tasks that he cannot cope with, performer who solves all organizational issues and is responsible for the quality of the work performed.

At enterprises Russian Federation outsource functions accounting, recruitment services, production services, IT services, marketing services and ensuring the security of the company.

To improve the quality of production activities, taking into account time savings, Money and full-time places, you will be helped by organizations providing outsourcing services. A team of qualified professionals who know their business and are able to cope with the task at as soon as possible.

Outstaffing and outsourcing, differences

Outstaffing and outsourcing - differences is there or not? So, having considered in detail outsourcing and outstaffing, we can conclude that these services provide enterprises with the necessary support. Without outsourcing services, some companies will cease to exist, largely due to competitive pressure.

As we found out the concepts of outsourcing and outstaffing, they have different meanings and different kinds activities. But I would like to note one more important difference - costs. What is the difference between outsourcing and outstaffing in this area? Each company tries to achieve a high quality of labor, taking into account the reduced financial investments... So outstaffing of personnel is the most profitable type of service. The costs of payments and salaries are much less than in outsourcing. In this case, there is one more plus - low time consumption, since outstaffing firms work constantly.

To all the differences, I would like to add a feature that unites these services. A common feature of outsourcing and outstaffing is that their main task is to focus on the minimum amount of risks, reduce financial, personnel and production costs, and optimize taxes.

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If you have ever looked for a job, then most likely you have come across outsourcing companies. They help companies hire workers for a fixed fee. At the same time, the employees themselves do not need to make any cash payments. Along with outsourcing, there is the concept of outstaffing. They are similar, but not synonymous. You can read about the difference between outsourcing and outstaffing, and what pros and cons these areas have in this article.

Outsourcing history

The term "outsourcing" originated from the English expression outside resource using, which translates as "the use of external resources." The profession of a recruiter appeared in the 19th century, but then, of course, no one called it that. The first outsourcers can be considered people who hired seafarers for long voyages... They looked for personnel, negotiated wages and received their percentage of the proceeds. Peter I can also be called a kind of recruiter, because for the construction of St. Petersburg he attracted hundreds of personnel from abroad, among whom were engineers, architects, teachers, nobles.

In the 19th century, the hiring of security guards, housekeepers, accountants and stenographers began to gain popularity in Britain and several other European countries. In the 20th century, outsourcing began to develop rapidly. One of the key figures can be called General Motors, which received a powerful impetus for development thanks to the attracted qualified personnel. In the 1950s, the first highly specialized companies began to appear in the United States, which were engaged in the search and recruitment of personnel for a specific area. For example, an IT outsourcing company or a firm that hires accountants for small industries... These services became very popular as they helped to save budget by not hiring full-time employees. Outsourcing came to Russia quite late: already in 1990. The early agencies had limited capabilities, but gradually employers realized the full benefits of outsourcing. At the moment, in many business structures and government organizations outsourcing technologies are used.

What is outsourcing?

It is not for nothing that outsourcing was popular several centuries ago. It is based on the idea of ​​separating individual business processes and delegating some tasks to third-party companies. The division of labor is very effective, and not only for large organizations. Studies have shown that when an employee works in multitasking mode, his ability to work decreases, and the quality of task performance suffers. The transfer of some of the responsibilities to a professional has a positive effect on the speed of work and the result. More than 84% of company owners are satisfied with the outsourcing services provided. Among other things, the outsourcing concept helps to improve the quality of the product. Thus, the attraction of personnel "from outside" has an impact on three sides:

• Time of production or service delivery.
• Cost of goods.
• Quality.

There is a certain classification of outsourcing companies by industry and manufacturing. As a rule, one firm specializes in only one direction. What industry recruiting companies can you find?

• Construction.
• Accounting.
• Financial.
• Legal.

These are the most demanded destinations in modern world... It can be quite difficult to attract qualified personnel on their own, so companies often use the help of outsourcing firms. The benefits of this practice are obvious: for example, in America, where recruitment has been flourishing for more than a dozen years, labor efficiency is several times higher than in Russia.

Outstaffing

Management development dictates new criteria for optimizing business processes. One of such technologies is personnel outstaffing, which allows to reduce production costs. Many people confuse it with outsourcing. But there are differences between outsourcing and outstaffing, despite the similar sounding of the terms. What is outstaffing? This is a kind of "loan" of personnel from another organization that has the necessary personnel. This is indicated by the origin of the word: out - "out" and eng. staff - "staff". The employing company concludes an agreement not with another enterprise, but with employees who are transferred to its temporary disposal. At the same time, they conclude a temporary agreement, which prescribes a list of works that they undertake to perform. That is, formally, employees are listed on the account of one enterprise, and perform the tasks of another.

Outstaffing is usually a temporary measure that is required under different circumstances:

• During maternity leave or hospital staff.
• For short-term projects.
• To perform work with harmful conditions labor.

The concept of outsourcing and outstaffing helps you choose the right way to attract staff. Outstaffing gives employers unlimited freedom of action. They are not required to deal with taxes and paperwork - this is usually taken over by the company that provides the staff. Also, the employer at any time can refuse the services of such an employee, without explaining the reasons for the dismissal and without paying a penalty. Therefore, in 2016, amendment 53.1 was introduced to the Labor Code, which limits outstaffing of personnel. Now the temporary staff must work in the company for at least 9 months.

Functions

In order to answer the question of how outsourcing differs from outstaffing, you must first understand what functions they perform. Outsourcing, like outstaffing, can take over any functions of an enterprise. The most common tasks are:

• Payment wages, taxes, preparation of accounting reports.
• Development of software.
• Cleaning of private apartments, offices, buildings.
• Construction works: construction and repair of buildings and complexes.
• Maintenance of ground and air transport (airports, railways).
• Legal support transactions and activities of the company.
• Advertising companies, development and promotion of new products.
• Personnel management, cost optimization.

For any function or task that you need to solve, there is a specialist who will do it in the shortest possible time and with high results. This is what outsourcing companies exist for. They allow not to hire permanent staff, but from time to time to look for professionals for the necessary purposes.

What is the difference between outsourcing and outstaffing

Outstaffing is often confused with outsourcing. Meanwhile, these are completely different services. They have legal, legal and functional differences. Outstaffing companies provide their staff outside organizations for a period of 9 months. A feature of this form of personnel selection is that legally employees remain registered with the outstaffer company. They are connected with the customer company by a temporary contract, according to which the company undertakes to pay the agreed amount after the completion of the work. The main point of outsourcing is to transfer part of the business processes to a third-party company, and this is the main difference between outsourcing and outstaffing.

But there are other differences as well. An employee of an outsourcing company, as a rule, receives a job, a salary and a number of job descriptions... In fact, he differs from a full-time employee only in that he is hired for a short period of time. If a specialist was attracted by an outsourcing company, then his schedule is usually not standardized, he is only required to complete the assigned tasks. Having studied these features, you can get an idea of ​​how outsourcing differs from outstaffing. It should be noted that both forms in Russia are still poorly developed at the legislative level, therefore, fraudsters are often found among outsourcers.

Similarity

If everything is clear with the differences, the similarities between outstaffing and outsourcing are even more obvious. Both firms use their reserves for the following tasks:

• Minimizing risks.
• Improving product quality and company efficiency.
• Decrease in financial expenses.
• Optimization of taxes.
• Acceleration of production processes.

Despite the differences between outsourcing and outstaffing, both directions are designed to save the company money on the biggest expense item: staff costs.

Advantages

Outsourcing has become quite popular lately, and many companies are considering using the services of recruiting companies. What are the advantages of outsourcing and outstaffing?

• Saving money and time is one of the most significant reasons for outsourcing. Often, small companies accumulate a lot of specific work that requires certain knowledge and skills. In the absence of a better alternative, it is blamed on the company's employees who do not have similar experience... The result is poor, productivity drops. In this case, hiring temporary professionals can be a good solution.
• Freer contractual relations make it possible to terminate the contract in accordance with the procedure established by law. Significant concessions still apply with regard to attracting personnel "from outside".
• Outsourcing can prevent many unpleasant situations. For example, in the event of dismissal, maternity leave, or sick leave, the company will simply offer another professional. Also, an agreement with an outstaffing company can save you from labor disputes and reports to the tax office.
• You can be sure that the assigned tasks will be completed on time. The outsourcing company is interested in high quality their services, so employees do the job efficiently and on time.

Flaws

Outsourcing and outstaffing also has certain disadvantages, which are associated with the peculiarities of these areas.

• An incorrectly completed task is the result not so much of the negligence of hired employees as of an incorrectly set task. Therefore, when setting goals, it is important how to compose in more detail technical task.
• The bankruptcy of an outstaffing company can lead to default.
• By outsourcing some of the tasks to third-party employees, you risk the company's confidentiality. Of course, a non-disclosure clause will be spelled out in the agreement, but this does not exclude the possibility of industrial espionage.

Personnel leasing

In addition to outsourcing and outstaffing, there is personnel leasing, which is the hiring of seasonal workers. One side in leasing is recruiting agencies that seek and provide the necessary personnel. On the other hand, there are enterprises that need temporary staff. For example, for seasonal cleaning of the territory or renovation of premises. The difference between leasing and outstaffing is that in the latter case, the staff is provided by another, non-core organization. Leasing is usually handled by professional recruiting agencies.

Outstaffing and outsourcing agreement

The difference between outsourcing and outstaffing lies not only in the forms of attracting personnel, but also in the contract. The following parameters are displayed in the application for the provision of outsourcing services:

• The nature and scope of work.
• Payment.
• The number of outsourced employees.
• The result of their activities.
• Maintaining confidentiality.

When concluding a contract for outstaffing services, the employer carefully describes:

• The number of employees involved.
• Remuneration for labor.
• Additional legal agreements with temporary staff.

Thus, the main difference between outsourcing and outstaffing contracts is that for outsourcing services a full-fledged contract is concluded, and during outstaffing, only an agreement on the provision of personnel is valid. But even for this, the recruiter must meet certain criteria provided for by Article 56 of the Labor Code of the Russian Federation. The difference between outsourcing and outstaffing is clearly visible at the legal level, so it is incorrect to compare these concepts with each other.

What is outstaffing in simple words? How is outstaffing different from outsourcing? What agencies provide staffing services and how much does it cost?

Hello dear readers! Dmitry Shaposhnikov, one of the authors of the HeterBober.ru business magazine, is with you.

One of the ways to solve the problems associated with recruiting personnel, optimizing the number of the enterprise is outstaffing - a service for the provision of personnel.

For 7 years, I headed a large division in Stavropol of one of the leading telecommunications companies in Russia. Our company has actively used outstaffing, especially in recent years.

Outstaffing can help you to properly distribute the workload on your employees, free you from many problems, save money and hassle.

By correctly implementing this tool in your business practice, you will revitalize your business, increase income, and partially get away from the problem of hiring personnel. You will free up resources for development, you will have more time for planning.

Do you also want to use this tool in your business, so that neither labor nor tax authorities consider the law violated?

Then close the extra tabs of your browser and read this article carefully!

1. What is outstaffing in simple terms?

Let's start with the definition.

Outstaffing- the form of hiring temporary employees to perform different categories of work.

For example, you have just opened your store and you need to:

• train your consultants in sales technologies,
• hire a person for general weekly cleaning;
• periodically, 2-3 times a month, unload-load heavy goods.

And during the pre-New Year sale, you will need additional sales consultants, who will then need to be fired. In addition, your staff members periodically get sick, go on vacation. It would be desirable to have a person who could come out to replace if necessary.

If you enter into employment contracts with all these people, you will face the following difficulties:

1. The complexity of the selection. Nobody wants to go to work on several New Year's Eve days, once a week or several times a month. Making money with such a schedule is almost impossible.
2. The complexity of dismissal. Even if there are those who wish, you must conclude labor contract... Usually it is concluded for an indefinite (long) period, but you need it - for 2 weeks. If the employee doesn't agree, problems can begin.
3. Paper work. For each employee, a lot of documents are drawn up and soon you will be faced with the need to hire another HR inspector, and this is an additional cost.

Outstaffing will save you, as a director of a store or any other enterprise.

In simple words,

Outstaffing is the provision of personnel on lease by a third-party company. At the same time, this personnel is registered in the staff of the outstaffer company.

To implement such an idea, three parties are needed: the employee himself, the company that needs him, recruiting agency... The latter draws up an agreement with the candidate in accordance with the Labor Code, pays insurance premiums for it, but the workplace is in the interested company.

You set up an agency that provides outstaffing services, requirements and job profile, and it takes care of the workload of the employees' work schedule, payment of fees, and its willingness to leave for you on demand.

Do not use outstaffing if you are hiring core staff. With consultants and cashiers in the store, with engineers and key workers in production, with doctors and nurses in the hospital, if you plan to occupy them completely for a long time, you can and should conclude indefinite employment contracts, provide them with all guarantees and social benefits.

2. How is outstaffing different from outsourcing?

Until now, in many contracts and even in the definitions of courts, outsourcing is called the selection and provision of personnel at the disposal of the customer, and this is outstaffing.

These two concepts have nothing in common. You can clearly see these differences in the table below. We have previously written about.

Comparison table of outstaffing and outsourcing:

Thus, outsourcing and outstaffing are different forms of contractual relations and forms of performing the company's tasks. Confusion in concepts can lead to misinterpretation of the terms of the contract by different parties, and, therefore, to conflict, breakdown of relations, fines and other unpleasant consequences.

3. New in legislation: has outstaffing been banned since 2016?

I must say right away that no, no, and no again! Banning outstaffing is a myth invented to create excitement around the topic. What actually changed? The legislator introduced a new concept - Employed Labor, which has been "vetoed" since 2016.

Hired labor is an uncontrolled rental of any personnel for any purpose and any work. In Russia he banned since 2016.

Outstaffing has not been prohibited since 2016, subject to legal restrictions.

The benefits of outstaffing, if used correctly, are obvious.

Companies can save on temporary, seasonal employees, on performing work in secondary (non-core) activities, in places that do not require serious training or special education.

And that's not it. Resourceful employers have come up with a simple but effective system, like with the help of personnel outstaffing:

1. Pay less for accident insurance. A company that is engaged in high-rise, underwater, underground and other hazardous / harmful work, then such a fee will be high for each employee. But if you hire a specialist whose employer is a recruiting agency, the insurance premium will not exceed a hundred rubles, because the main activity of the outstaffing agency is not high-rise / underwater / underground and other dangerous and harmful work, and the selection of personnel. Only workers with injuries and occupational diseases sustained in the workplace suffer from such a scheme - they cannot count on full-fledged insurance.
2. Save on employee insurance premiums. Contribute smaller amounts to the Pension Fund for employees who are entitled to early retirement benefits based on their working conditions. A miner, whose employer is a recruiting agency, will not receive an early retirement pension, although in fact he works in conditions that imply such a pension.
3. Save on vacation. Do not pay additional vacation due to certain categories of workers, because they are employed in an outstaffing company, and not in hazardous production.
4. Replace employees quickly. For example, “unwanted” and “obstinate” workers who have gone on strike can be quickly replaced with others. To avoid downtime, the company hires the right people and keeps working.

Such manipulations and games with the law could not remain unnoticed by the legislator for a long time, therefore, outstaffing has undergone changes and restrictions since 2016.

For some categories of workers, in order to protect their rights, only a direct employment contract is provided with all the benefits relying on the law: additional payments for harmful or dangerous working conditions, early retirement pension, additional paid leave, and accident insurance.

4. Outstaffing and agency labor: the main differences

Until 2016, when no form of staff leasing was regulated by law, the two concepts could be considered synonymous.

Let me remind you that agency work involves the replacement of any employee, for any period, for any purpose, without restrictions. This form of personnel outstaffing is now prohibited in our country. Moreover, since 2016 a third party has appeared - the employee himself. At agency work his opinion could not be taken into account - the order of the employer was enough. And during outstaffing-2016, he acts as a full-fledged partner, deliberately entering into an agreement and giving voluntary consent to work in the company.

In order not to "slide" into illegal hired labor, when concluding an outstaffing agreement between a recruiting agency and a company, very specific requirements must be met.

The company is prohibited from using rented personnel:

• during strikes of key workers, during downtime associated with non-payment of salaries to staff;
• at hazardous facilities, at workplaces with hazardous working conditions;
• when the qualifications and education of employees are necessary to obtain licenses, accreditations and permits (doctors in medical institutions, teachers in educational institutions, chief engineers and mechanics in production - all these workers must be on the staff and cannot be rented.

5. Sample outstaffing agreement for download

In addition to legal restrictions, when concluding a personnel lease agreement through outstaffing, you need to provide for many details that, if neglected, will cause additional costs. For instance:

• Are recruitment and selection services included in the price or are they paid separately?
• can the contractor (recruiting agency) change employees without agreement with the ordering company?
• actions of the parties in case the presented candidate does not meet the requirements?
• many other minor details that you pay attention to only if you have problems with them.

To immediately foresee all possible situations and insure yourself against potential problems, you need a qualified lawyer. And if his services are too expensive? The Internet will come to the rescue! For example, a service such as QuickDoc with a sample outstaffing agreement can help you in drawing up a contract. Changing positions, you can get different conditions agreement.

6. What agencies provide services for the provision of personnel and the commission of outstaffing companies?

Since 2016, personnel provision services can be provided by:

• accredited recruiting agencies;
• legal entities or entrepreneurs - under agreements with affiliated companies and with the consent of the employee.

In St. Petersburg and Moscow, outstaffing of personnel is carried out by the following agencies:

1. Zest-Personnel(zest-personal.ru)
2. Interprime(interprime.rf)
3. Contact Service(okcall.ru) - call center
4. Credence(credence.ru)
5. HR Advisor(outstaffing-sovetnik.ru)

The following requirements are imposed on outstaffing companies: they must apply only the main taxation system, work without arrears on payments to the budget, and have at least a million rubles authorized capital, and the head of such an agency must have higher education and work experience in the specialty.

The customer pays the agency a single invoice, which includes:

• employee salary;
• Personal income tax;
• contributions to the Pension Fund, MHIF, FSS;
• vacation pay, payment upon dismissal;
• agency commission. It provides compensation for HR administration, accounting and tax support of personnel, submission of reports for each employee. The increased commission may include recruitment services.
• other services: the provision of workwear, uniforms, training, medical examinations, and the like.

The average agency fee is on average 1-5 thousand rubles for each employee. Most contractors offer a discount for the number of employees.

The cost of outstaffing is low, otherwise there would be no point in it.

To better understand what outstaffing is and in what cases companies resort to it, watch the video from Stolitsa FM radio:

7. Conclusion

Now you have learned more about such a way of working with personnel as outstaffing, as well as about new legislative requirements in this area. We hope this article was helpful to you. Today this service can be used by any company wishing to legally reduce maintenance costs. work force.

All that is required is to comply with the basic provisions:

1. The temporary nature of the work of the rented personnel;
2. The employee's consent to his own lease;
3. Workplaces without harmful or hazardous factors;
4. Working with an accredited outstaffing agency.

Compliance with these points will allow you to work calmly, saving money and not violating current legislation. I wish you success!

In the current economic realities, it is becoming more and more popular, which many confuse with outsourcing. Of course, these concepts are very similar, but there are some differences. So what are the the main differences between outstaffing and outsourcing and what is it anyway?

To begin with, I would like to say that both of these processes associated with the involvement of employees from outside... But the scheme of their interaction with the employer is different, so in today's article we will consider all the main points regarding these two phenomena.

Dear Readers! Our articles tell about typical solutions legal issues but each case is unique.

If you want to know how to solve exactly your problem - contact through the online consultant on the right or call free consultation:

Definition of concepts

Both of these processes are to the issue of recruiting personnel from outside but that's enough general characteristics... In order for us to distinguish both of these concepts, it is necessary to clearly understand their specifics, functions and definition. That is why, you need to start with terminology, i.e. with a precise definition of the concept itself.

Outsourcing is a special form of labor relations between a company and a provider organization specializing in the provision of a certain type of service. The specificity lies in the fact that the company resorts to the help of third-party labor directly at the moment when it is really needed.

For example, a company is engaged in the production of a product, and then prepares it for sale. Naturally, in order for the product to be promoted, you need advertising services to make the product known everywhere.

It is not always expedient and profitable to maintain an advertising department from the moment the product is manufactured, so the company resorts to to outside help services- advertising agency.

The same practice happens and with the involvement of a system administrator or programmer. The company may not need it on an ongoing basis, because the need to install programs or software does not arise so often.

The most preferable option, in this case, looks like attracting a programmer from the outside, paying for his services on the fact of the work performed.

As for outstaffing, here the interaction scheme is slightly different. The company has its own staff, but draws up a certain part of it in other provider organizations.

Outstaffing employees continue to work in their workplaces, i.e. in the company itself, although they are officially listed in another organization.

The company in which such employees will be listed is called an outstaffer. There is also another scheme of cooperation. Outstaffer company has a staff at its disposal, whose services may be requested by other companies. These can be movers, welders, bank employees and other specialties.

An outstaffing agreement is drawn up, on the basis of which the company transfers its staff to another organization to perform specialized tasks.

Functions

One of the main differences between these two processes is the specifics of the functions performed by the involved employees... While outsourcing performs a number of rather specific tasks that are not basic to the organization, then the situation is slightly different with outstaffing.

Involved employees perform specialized functions and tasks, i.e. carry out activities that are the main for the company.

In particular, outsourcing performs the following functions:

Outstaffing has a wider range, because it is characterized by the removal of employees from the staff, although they continue to carry out their professional duties.

Such cooperation schemes are typical for banking organizations, although they can also be found in other industries.

Legislative regulation

The legal regulation of these concepts appeared relatively recently, despite the fairly long-term practice of such actions. In particular, outstaffing process became regulated only in 2014, when in Labor Code the corresponding chapter appeared - 53.1.

This chapter talks about the possibility of attracting employees from another company to carry out a certain type of activity, but subject to full respect for their rights and freedoms... It also talks about the nuances of concluding agreements between the two companies so that the rights of both parties are not violated.

With regard to outsourcing, this process is regulated by other regulations. In this case, the Civil Code, or rather the article, is taken into account. It clearly describes all the processes for the provision of services on a contractual basis.

The main differences

In order to be able to understand these phenomena, it is necessary clearly understand the difference between outsourcing and outstaffing... Consider all these nuances in the table below.

Also, the difference between these two processes is the specifics of the work performed. Outsourcing, as a rule, is aimed at performing intellectual work, while outstaffing involves doing absolutely any job.

Take a look difference video between these two concepts:

Order of conduct

We examined the main differences between these two processes concerning the specifics of labor relations between the employer, i.e. the company, the customer, and the contractor. But there is also a difference in the order of outsourcing and outstaffing, so we will consider this issue as well.

Outsourcing is carried out approximately according to the same principle, regardless of the industry of the customer company. The standard process is as follows:

As for outstaffing, it is carried out somewhat differently:

1. The executing company that provides hired employees carefully studies the specifics of the customer company... Tasks that can be solved with the help of the involved labor force are taken into account.
2. Between the two sides a corresponding agreement is drawn up. It should contain the cost of the service itself.
3. After the contract is signed, employees begin their professional activities.

It should be noted that the outstaffing agreement does not imply the final result, which distinguishes it from the contract for the provision of services, which is drawn up with outsourcing.

Advantages and disadvantages

Both of these processes are aimed at cost reduction for the client company, therefore, the practice of using outsourcing and outstaffing is quite wide. But it should be noted that each of these processes has its own pros and cons, so let's try to compare them in terms of the positive and negative aspects of such types of cooperation.

If we talk about the advantages of outsourcing, then for the customer an unconditional advantage is the optional provision of a workplace.

In addition, payment is made only after the fact, i.e. for the end result. As for the shortcomings, it is quite difficult for the employer to control the work progress itself.

Outstaffing assumes the constant presence of employees on the territory of the customer company, therefore it can completely control their actions.

Accordingly, in the event of a violation labor discipline, or the incompetence of individual employees, the employer can apply various penalties.

As for the disadvantages, the employer must pay in full employee, and not for the service itself.

In general, I would like to note that these schemes of labor relations are aimed at optimization of organization costs, therefore, they are quite popular in various fields and industries.