Outstaffing vs. Outsourcing: Are There Any Differences?

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Highly qualified personnel are the core of every business. But not every company can afford to maintain numerous highly paid staff. To solve this problem, businesses use outstaffing and outsourcing services. In essence, these are services of attracting freelance staff and transferring business processes to the service of companies by contractors.

Let’s Understand What Outstaffing and Outsourcing Are?

Many people mistakenly believe that outsourcing and outstaffing are the same things. Both these methods are similar in that they involve hiring outside personnel to perform the company’s tasks. In both cases, workers are on the payroll of the outsourcing or outstaffing company, which handles all personnel issues and pays their salaries. That’s where the similarities end. To finally understand how they differ, let’s turn to the definition of these two concepts. 

In outsourcing, a firm is looking for specific labor service. This service can be different, starting from legal service, ending with accounting.  The company is not interested in who exactly will perform the service, only one thing is important – the result. Outstaffing requires the company to look for personnel with specific qualifications, work experience, and personal characteristics.

Outsourcing and Outstaffing: What Are the Benefits for the Company?

  1. Cost-saving. It is cheaper to pay for the service than to keep employees on the staff.
  2. By using outstaffing and outsourcing software development companies There is no need to train the personnel, which is time-consuming and requires resources. Also, the entire process with the search, hiring, and firing of personnel is undertaken by the contractor.
  3. The possibility of ordering service at a time when there is a need for it. There are tasks for which it is more profitable to find personnel from the outside, rather than hiring new personnel to perform them.

In general, when using both methods, the client company reduces the running costs. By getting rid of such processes as employee recruitment and other related issues, the company can focus on its core business.