Do you agree that in order to achieve a positive result in business, every process, without exception, must be performed by authorized professionals in a particular field? But at the same time, keeping a highly specialized team of specialists to perform each process is not a cheap pleasure. Another problem that every business owner faces is reducing taxes and optimizing staffing costs. Outsourcing and outstaffing - both concepts denote a special type of relationship between the company and the employees outside the main workforce, who play an important role in the development of the organization and the performance of individual processes. The term outsourcing refers to the contractually justified transfer of certain tasks to specialists in the relevant field from another company. Literally, it is translated as "external sources" or "resources from outside". In simple words, this technology of personnel management allows you, without any need in controlling the process itself, to get the work done in the time specified by you. The distinguishing feature of this service from staff rent and leasing is the business process itself and professional support, confirmed by the concluded contract. There are two main types - personnel and business process outsourcing. The first type is the transfer of responsibilities of certain enterprise departments (for example, accounting, HR, computer maintenance services) to performers from the company-provider. At the same time, business process outsourcing is the deepest form of service, which implies a long and close relationship between the client and the outsourcer. This type of cooperation does not imply the transfer of a single task to an executor, but an entire segment within their business. In contrast to personnel outsourcing, there is no time limit and no fixed budget.
Attracting external human resources will be convenient if you need personnel for a relatively short period, for example for seasonal work. You can get a team of highly qualified specialists for a specific period of time, which will help to reduce staffing costs.
This service is also used when there is a shortage of qualified employees and when the institution cannot afford to expand its staff. After all, the more employees work in the organization - the higher the taxes. And often, increasing the permanent number of employees only leads to higher costs and burdens on the accounting departments. In addition, you will lose the need to maintain a huge staff of human resources. All personnel matters, including taxes, are handled by an outsourcer company. You will get high results from the business process without worrying about working conditions, workplaces, control and risks associated with the task.
Outstaffing is very often confused with outsourcing or taken as one of its varieties. But this statement is far from the truth. Literally, the name of the service translates as "out of state". An IT outstaffing agency https://peiko.space/service/it-outstaffing can help you create a team that owns the entire software development lifecycle, from defining requirements to managing operations. Outstaffing refers to formally firing employees and at the same time accepting them into the staff of the outstaffing company. In this case the workplace and responsibilities do not change. From the legal point of view, the employee will be on the staff of the outstaffer, but will continue to carry out the instructions of his former management. Outstaffing will be useful when there is a need to reduce staffing levels without losing qualified and experienced personnel. Thus, analyzing these management technologies, the difference between them is that outsourcing is the transfer to a contractor of authority to perform a specific business process, while outstaffing is the placement of personnel on the contractor's staff. In outsourcing, the contractor looks for employees for the customer's company and puts them on his own staff, while in outstaffing, the contractor puts employees of the customer's company on his own staff.