Outsourcing and outstaffing are the transfer of part of your responsibilities to external contractors. The methods of doing business are similar, but the way and features of interaction between service customers and contractors are different. Magento development agency specialists tell how to distinguish one type of production relationship from another.
Outsourcing – Definition And Features
Outsourcing is the transfer of certain tasks or functions to external specialists or companies, instead of performing them in-house within the organization. This is a way to delegate non-core processes to those who can perform them faster, lesser or better.
Outsourcing features:
● Transferring the task in full to freelancers;
● Work under an agreement, which specifies the scope of the task and the responsibilities of the parties;
● Secondary tasks are transferred, the main operational activities remain the responsibility of full-time employees;
● Scalability – you can increase or decrease the volume of services without affecting the internal processes in the company;
● Resource savings – as a rule, hiring a part-time employee or freelancer is cheaper than creating a workplace for a full-time employee and paying payroll taxes;
● Access to professional expertise – the contractor may employ specialists in rare professions, and it may not be practical to bring such a person on staff.
Important point: the customer of services, in the vast majority of cases, is not personally acquainted with the performer.
Outstaffing – Definition and Features
Outstaffing is a form of contractual relations, in which employees work for the customer, but are registered on the staff of another company (outstaffing agency). Direct performers contact the customer of the service, and can perform processes related to the main operational activity.
Features of outstaffing:
● Activities are carried out on the customer’s premises;
● Equipment is provided by the customer;
● The customer manages a team of rented specialists;
● The staff is on the staff of the outstaffing company;
Thus, according to the documents, the employee is listed with the outstaffing company, but in fact, he works for the customer.
What To Choose: Outstaffing Or Outsourcing
The choice between these approaches to hiring personnel depends on the goals, objectives and internal organization of the company.
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Choose Outstaffing |
Choose Outsourcing |
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● Specific specialists are needed for a specific task; ● The project is temporary, you don’t have enough of your own workers; ● You want to manage employees, their tasks and time; ● There is no possibility to expand the staff, and a specific project must be completed within a strictly defined time frame. |
● You want to completely transfer the task to an external company and get a turnkey result; ● You do not plan to manage the work yourself; ● The task is not core (accounting, IT support, cleaning); ● The costs of paying for the services of a freelance professional are lower than creating a workplace and hiring an employee at the enterprise. |
Conclusion:
outsourcing is the delegation of a complete process, outstaffing is the temporary rental of specific specialists. Decide for yourself what to choose based on the current tasks that need to be solved to make a profit.