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Information Technology and System Administration

Outstaffing or outsourcing?

Outstaffing or outsourcing, many people put the same meaning in these different concepts.  Although both terms imply the performance of work at your enterprise by the staff of another company, at the same time, there are significant differences.

Outstaffing is the withdrawal of an employee for the staff of the client company and his designation in the staff of the contractor company.  At the same time, nothing changes for an employee; he works in the same place and position, the same salary and duties remain.  But duties as an employer are now performed by a contracting company.

In turn, staff outsourcing involves the involvement of freelance employees to perform non-core functions of the company.

As a rule, when outstaffing, entire departments that perform the same function throughout the entire work of the company are transferred.  For example, employees of the accounting department, representatives of working specialties – loaders, drivers, cleaners.

When outsourcing attract personnel to a one-time job, which is not peculiar to the direct activity of the company, as a rule, it is IT specialists, designers, couriers, security, etc.  In this case, payment is made for a particular work or project.  The specialist actually does not have a workplace, he determines the work schedule himself, and his work is paid only for actually completed tasks.

When outstaffing, the same employee has a job, formalization, and receives his salary on a monthly basis (and not for each individual task).

Each form of recruitment has its own advantages and disadvantages.

If at outstaffing, employees in fact work for a stable salary and stipulated bonuses, then at outsourcing the salary level determines the complexity of the project, its duration, and the uniqueness of the service provided.

Advantages for the company-customer at outstaffing are:

– reduction of costs and taxes on staff;

– responsibility for the work performed and the staff is transferred to the outstaffing company;

– payment for the services of an outstaffing company is fully paid to the costs of the enterprise, thereby reducing the income tax;

– retaining staff who knows all the nuances of the company;

– employees hired out of state are not listed as enterprise personnel and are not taken into account when determining the size of a company by number.  Therefore, it is possible to operate as a small business and enjoy preferential tax treatment;

– engaging specialists from other cities and regions, without opening branches and representative offices there.

Among the main disadvantages of outstaffing:

– the possible absence of a single coordinator of the outstaffing staff on the part of the agency, frequent changes of coordinators;

– Employment on the model of out-staffing out-of-state company can serve as a barrier for new employees in hiring;

– maintaining commercial secrets and loyalty to the company.

The interest in outstaffing is increasing when it is most urgent for companies to reduce staff, reduce staff costs, without reducing the volume of duties.

Benefits of outsourcing:

– By outsourcing individual non-core business activities, the company can pay more attention to the core business functions that generate profits;

– outsourcing eliminates problems with the search and training of personnel necessary to perform specific work and unclaimed on an ongoing basis;

– the company gets the opportunity to use the services and equipment of high quality;

Disadvantages of outsourcing:

– too “carried away by” outsourcing, a company can transfer too many spheres of its activities to be performed by third parties, thereby depriving themselves of many opportunities;

– management efficiency may suffer;

Summing up, outsourcing is economically beneficial when hiring personnel for work that is not related to the main activity of the company and refers to specific types of work.

Choosing this or that form, each company must decide for itself what it wants to get at the exit.If she needs employees with a permanent list of duties and salary that are embedded in the internal processes of the company and nominally to be part of the team, then you need to choose outstaffing.  If highly specialized specialists are needed for a certain type of work or a project that is paid for a specific task, then outsourcing will be suitable.

We offer both types of services.  We can act as a company that provides outstaffing services – we will take your staff and enroll in our staff, but in fact, nothing will change for your staff.

Our advantages are the high responsibility of our administrative managers who oversee the project.  Additionally, the central office conducts a weekly quality control in order to keep abreast of the work of the personnel at the facilities and promptly respond to various situations if such arise.

We also take one-time services for outsourcing.  We have specialists and necessary equipment for one-time general cleaning services, which may include window cleaning, carpet cleaning, furniture, facade cleaning, high-altitude cleaning work.  We will clean your ventilation with special equipment or carry out minor repairs to furniture, replace light bulbs, transplant flowers.  You do not need to keep a permanent specialist for such orders, you do not spend money on expensive specialized equipment or the purchase of professional chemistry.

You get only the result, without interrupting your business processes.

Order a free-of-charge visit of the expert for an estimation of volume and cost of works!​

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