What is outsourcing outstaffing. We save on staff: what is the difference between outsourcing and outstaffing

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The concept of "outsourcing" (outsourcing) in translation from English means the use of an external resource. Another foreign word "outstaffing" (outstaffing) is translated into Russian as freelance.

Outsourcing and outstaffing

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

It is possible to distinguish between concepts by studying in detail the terminology of outsourcing and outstaffing. Outsourcing services refer to the relationship between a customer and a supplier. In other words, in this process there is a transfer and execution of tasks by the implementing organization. In this case, employees work for a service company and receive a salary. The customer gives tasks that he is unable to cope with, the contractor who decides all organizational issues and is responsible for the quality of the work performed.

At enterprises Russian Federation for outsourcing take the functions of accounting, recruitment services, production services, IT services, marketing services and company security.

To improve quality production activities, taking into account time savings, Money and staff places, organizations providing outsourcing services will help you. A team of qualified professionals who know their business and are able to cope with the task in the shortest possible time.

Outstaffing and outsourcing, differences

Outstaffing and outsourcing - differences is there or not? So, having considered outsourcing and outstaffing in detail, 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 have different meanings and different kinds activities. But I would like to note one more important difference - these are costs. What is the difference between outsourcing and outstaffing in this area? Each company tries to achieve high quality of work, taking into account reduced financial investments. So outstaffing of personnel is the most profitable type of service. The cost of payments and salaries is much less than in outsourcing. In this case, there is another plus - low time costs, 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 number of risks, reduce financial, personnel and production costs and tax optimization.

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Today, foreign terms are beginning to appear actively in the business environment of Ukraine, the company's management tools are developing. This is due to the fact that we are so active in international market, therefore, it is necessary to understand what they mean and what their essence is. Outsourcing and outstaffing are terms that are now in circulation in the market and in business. What is it and what is the difference between these concepts? What is more efficient and how best to organize the work of the company?

What is outsourcing?

Today, outsourcing in Ukraine is just beginning to develop, while Western companies have been using such employees for many years. At the same time, the word “Outsourcing” came into vogue at one point, so it is used without thinking about the essence.

Outsourcing is this type of cooperation, during which the customer company transfers part of its tasks remote employee or outsourcing company. Most often, special contracts are used to organize such work, which regulate tasks and functions.

In most cases, the outsourcer is professional firm that specializes in doing a specific job. But this is also the name of informal employees who constantly perform tasks or control projects, but are not current employees freelance firms.

The main difference between freelancing and outsourcing is that there are no contracts with the first one, but everything is done by default. At the same time, a great responsibility can be laid on the employee, he performs many tasks, controls other specialists and submits work reports. This is convenient because a freelancer can work from anywhere in the world (if he has a computer), and the head of the company gets the results without paying taxes for additional employees.

Outsourcing, on the other hand, is different in that the company lays down a special contract that will regulate the work, and also pays a much larger amount than during cooperation directly with a freelancer. But in this case, the manager will have at least some guarantee of completing the tasks.

Example:

A company selling fuel for cars needs to create an original company logo. Since the task will be performed only once, it makes no sense to hire a special person. Therefore, they turn to an outsourcing company that provides web design services. Specialist remotely creates new logo, sends it to the customer and receives payment.

Outsourcing today is carried out by almost any company that provides services. Most often, remote work is based on:

• consulting and permanent lawyers;
• company accountant;
• professionals in IT;
• call center employees;
• recruitment agents;
• handymen (locksmiths, fitters)
• cleaning specialists.

The advantage of outsourcing is that the owner of the company will not need to hire many employees, rent an office and work on solving the problem. In addition, this way you can ensure the smooth operation of the enterprise, even if you do not have an employee with certain skills.

Outstaffing - concept and features

Outstaffing is a fairly new direction in business, so in many countries (including Ukraine) the system is not well thought out. Basically, the difficulties relate to the employees themselves who want to work in outstaffing companies.

Outstaffing is a form of work in which employees of one state company provide services to another company. Actually. specialists are “on loan” for a certain time, while all issues are resolved by the company that hired them.

The best example might be popular agencies for hiring seasonal workers today. A specialist goes to work in such a company, signs a contract, but after that he is transferred to a permanent job at another company. For example, a person is hired in such a company, after which the manager looks for a job picking berries at another company. As soon as the season comes to an end, the employee returns to the original company and either works in the same company, or waits for a job in a similar seasonal firm.

Often, company employees are simply removed from the state, but they remain to fulfill their duties. At the same time, the manager pays the agreed wages, and the company to which the specialists were transferred takes care of all the documentation. But in fact the staff is employed by another company.

Benefits of outstaffing:

1. Withdrawal from the staff of personnel who are not needed at a constant rate, but work only periodically.
2. There is no need to select new employees, have a personnel department - the company will do everything.
3. The ability to reduce the staff of specialists without dismissing the majority of employees.
4. Savings on the maintenance of employees - all taxes, sick leave, vacation and other expenses are covered by another company.

The difficulty in understanding the difference between outsourcing and outstaffing is that original titles practically do not differ in essence. Outsourcing - outsourcing, literally translated as "external resources". Outstaffing - outstaffing is translated as "out of state". If you do not delve into the essence of the terms, it may seem that there is no difference between them.

You need to understand that although laws are constantly being adopted that regulate the work of outsourcing and outstaffing, in our country such systems are not yet organized at the proper level. During cooperation with an intermediary firm or when hiring freelancers, it is necessary to draw up contracts that are checked by lawyers. Only in this case it is possible to get only benefit from such forms of cooperation.

In the current economic realities, it is becoming increasingly popular, which many confuse with outsourcing. Of course, these concepts are similar in many ways, but there are some differences. So what are 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 attracting employees from the side. 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.

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Definition of concepts

Both of these processes are to the issue of hiring staff from outside but that's enough general characteristics. In order for us to distinguish between these two 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 labor relations between a company and a provider organization specializing in the provision of a particular type of service. The specificity lies in the fact that the company resorts to the help of third-party workforce directly at the moment when it is really needed.

For example, a company is engaged in the production of a product, after which it prepares it for sale. Naturally, in order for the product to be promoted, we 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- advertising agency.

The same practice occurs when involving 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 occur very often.

The most preferable option, in this case, is to attract a programmer from outside, paying for his services. on the basis of work performed.

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

When outstaffing employees continue to work at their jobs, i.e. in the company itself, although officially they are listed in another organization.

The company in which such employees will be listed is called an outstaffer. There is another scheme of cooperation. Outstaffing company has staff at its disposal whose services may be in demand by other companies. It can be loaders, 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 core tasks.

Functions

One of the main differences between these two processes is the specifics of the functions performed by the involved employees. If outsourcing performs a number of fairly specific tasks that are not the main ones for the organization, then outstaffing is a slightly different situation.

Engaged employees perform profile functions and tasks, i.e. carry out activities that are the core of 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 state, although they continue to fulfill 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 rather long practice of such actions. In particular, the outstaffing process became regulated only in 2014 when the corresponding chapter appeared in the Labor Code - 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 entering into agreements between the two companies so that the rights of both parties are not violated.

As for outsourcing, this process is regulated by other legal acts. In this case, it takes into account Civil Code, or rather, the article. It clearly spells out all the processes for the provision of services on a contractual basis.

Main differences

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

№	Main criteria	Outstaffing	Outsourcing
1	Workplace	The entire work team carries out soy professional activity in the territory of the main employer, i.e. customer company. Accordingly, workers must obey the rules that are established by this organization.	Employees carry out their activities in an outsourcing company. A company that has placed an order for a certain type of work is provided with a finished project or a service.
2	Relationships	Customer company concludes an appropriate agreement with the implementing organization. With regard to the issue of labor relations, ie. payment, sick leave, tax contributions and other types of relationships, then the customer has nothing to do with this matter.	Outsourcing company fully responsible for their employees. It is she who pays tax deductions and other benefits and compensations.
3	What is payable?	The entire process of work takes place on the territory of the customer, so he can control its progress, execution, as well as make claims and demands. Accordingly, it is paid the entire workflow.	Outsourcing paid for concrete result, i.e. he is not interested in the ways in which he was reached. That is why, he is of little interest in the working hours of employees, the main thing is that the service provided be of high quality.
4	Scheme of cooperation between the employer and subordinates	The customer company pays for the human resource, i.e. those employees who are registered in another organization, but work for it on a permanent basis. Accordingly, the customer can manage according to one's own will but considering all their rights and freedoms.	With outsourcing, it is the service rendered that is paid for, so the authority of the customer does not apply to recruited employees.
5	Specifics of contractual relations	The agreement clearly states that the customer is provided a certain amount of workers. The contractor may be various organization including recruitment agency.	In this case, it is made service agreement. As for the performer, it can be a very different organization - construction firm, accounting and advertising agency, a company of IT specialists, etc.

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

look difference video between these two concepts:

Order of conduct

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

Implementation of outsourcing is carried out approximately according to the same principle, regardless of the branch of activity of the customer company. The standard process for conducting is as follows:

As for outstaffing, it is carried out a little differently:

1. An executing company that provides hired employees carefully studies the specifics of the client company's activities. The tasks that can be solved with the help of the attracted labor force are taken into account.
2. Between two sides an appropriate agreement is drawn up. It should include the cost of the service itself.
3. After the contract is signed, employees begin to carry out their professional activities.

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

Advantages and disadvantages

Both of these processes are aimed at cost reduction for the client company, so the practice of using outsourcing and outstaffing is quite wide. But it is impossible not to note the fact that each of these processes has its pros and cons, so let's try to compare them in terms of positive and negative sides similar types of cooperation.

If we talk about the advantages of outsourcing, then for the customer the 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 progress of the work itself.

Outstaffing involves the constant presence of employees on the territory of the customer company, so it can fully control their actions.

Accordingly, in the event of a breach labor discipline, or the incompetence of individual employees, the employer may apply various punitive actions.

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

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

The consistent development of management inevitably provokes the emergence of more and more new and innovative business solutions, the possibilities of their organization, and practical use.

For example, with the advent of leasing and outsourcing of personnel, it became possible to significantly simplify the process of managing personnel policy.

Another, no less effective technology of recent times is staff outstaffing.

Talking about outstaffing in simple words, we can say that this is the company's ability to transfer its employees to other firms.

Outstaffing - what is it in simple words

In a literal translation, outstaffing is the possibility of using human capital by another company.

By itself, the outstaffing customer does not enter into any legal relations with employees of another company.

However, the hired workers undertake to fulfill the full range of requirements and work specified in the agreement. In other words, an outstaffing company puts its employees at the disposal of another company for a certain period of time.

The total amount of the required work, the place and time of their implementation is prescribed by the customer company in a bilateral agreement. Formally, employees are on the staff of one enterprise, but in fact they do work for another company.

Differences from outsourcing

Outsourcing and outstaffing - what is it? What is the difference between outsourcing and outstaffing? Let's figure it out.

Speaking about the differences between outstaffing and outsourcing, it should be distinguished that the first term involves the transfer of working capital to the customer company, which undertakes to perform a certain list of works, for the time specified in the concluded contract.

Outsourcing, on the other hand, means that a third-party firm undertakes to perform a series of production functions and non-core business processes, which were previously implemented by the client company.

In modern Russian practice, outsourcing involves the transfer of personnel or accounting, marketing and transport services support in legal matters.

In the case of an outstaffing model of cooperation, a company specialist receives a place to work, instructions and a working salary.

An outsourcer (unlike outstaffing) is by no means included in the staff of the client company. Wages are strictly based on the work performed, and the schedule is flexible. Summarizing all of the above, we can sum up the differences between outstaffing and outsourcing.

Differences:

• Method of calculation. The outsourcer receives a salary based on the fact of the work performed, the outstaffer has a constant working salary.
• Hiring In the case of outsourcing, a simple contract agreement is concluded, while with outstaffing, the working staff is employed by the client company.
• The principle of organizing the workflow. Outsourcing offers full-cycle work, while outstaffing is temporary, strictly prescribed in the contract.

Another important difference is the set of responsibilities. Thus, outsourcing is characterized by tasks of an intellectual nature (legal support, accounting and personnel office work). An outstaffer can do any job.

Sample contract

Any operation within the framework of outstaffing cooperation is carried out on the basis of a concluded bilateral agreement.

In such an agreement, the surname and name of the specialist are indicated, as well as the time allotted for the execution of the project, the amount of salary and the list of necessary work.

The outstaffing company provides a package of information about the specialty and qualifications of the provided worker.

In the process of implementing work under the concluded agreement, the parties may draw up acts on the progress and results of the work performed. They prescribe the time period worked by the specialist and the amount of work performed. It is worth noting that the hired worker, as well as the customer company, are not documented and do not constitute any documents that have legal force. current Labor Code The Russian Federation does not conduct any regulations in matters of relations between the customer company and the outstaffer.

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Example

An illustrative example is the delivery of goods to warehouses.

If the warehouse is geographically located too far, and the cargo does not arrive often, there is no need to maintain a whole staff of handymen and loaders.

In this case, it is most rational to use the services of an outstaffer who is able to provide the required number of loaders at the required time.

Another equally popular example of outstaffing is the use of employees for periodic and seasonal projects. For example, a successful launch of a new product on the market requires sales representatives whose duties would be to promote the new product to the end consumer. In this case, there is no expediency in hiring new employees during the promotion of goods, and at the end of firing the entire staff.

The use of outstaffing in this case is simply necessary. For the duration of the project to promote new products, the outstaffer can provide the required number sales representatives having relevant work experience and information savvy.

Advantages and disadvantages of using outstaffing

Outstaffing has a wide range of both advantages and disadvantages that you should always keep in mind.

Pros:

• An effective solution to the problem of filling an "unpopular" vacancy.
• Significant reduction in company administration costs personnel records. There is no need to calculate taxes for each employee individually.
• The ability to implement the project without recruiting new staff, as well as training them.
• Reducing the cost of finding highly qualified employees.
• No staff turnover problem.
• Growth of the company's attractiveness in the investment spectrum.
• Availability of 100% staffing optimization.
• Reducing both legal and legal liability for employees.

Flaws:

• The probability of a disloyal attitude of hired workers to the enterprise.
• The absence of a maximum guarantee of the start and completion of the project being implemented within a strictly specified time frame.
• Inability to conduct a clear monitoring of the results of the outstaffer's activities and improve his qualifications.

In addition to all of the above, there are advantages and disadvantages for the employees themselves, acting as mercenaries. According to recent research high school economy, the advantages of an outstaffing device are the provision of social guarantees, official employment, the ability to change workplace without looking for an employer. However, those who work in the field of outstaffing note that this type of activity does not have any advantages for the employees themselves.

Features: what to look for

As mentioned above, outstaffing is represented by a contractual agreement, according to which the contractor undertakes to transfer specialized employees for a certain time, who will have to perform the assigned amount of work.

This agreement may provide for a number of additional obligations of the contractor. This is where the main contradictions may lie.

The practical implementation of outstaffing may be associated with the following risks:

• violation in matters of taxation;
• challenging a number of provisions of the concluded contract;
• non-compliance with labor laws.

The management of the outstaffing customer company, acting as a taxpayer, should be aware of the novelty of such a business solution in Russia and, as a result, the absence of strict regulatory legislation. In particular, the use of outstaffing can be considered by the tax authorities as tax evasion.

In turn, for workers in the field of taxation, the low level of security of using hired labor as a tool for tax evasion is extremely obvious. But as practice shows, outstaffing has a high viability, which is confirmed by the versatility judicial practice, the outcome of which in the vast majority of cases is determined by the accents placed in the outstaffing contract.

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In the current economic realities, outstaffing is becoming increasingly popular, which many people confuse with outsourcing. Of course, these concepts are similar in many ways, but there are some differences. To avoid unintentional violation of the law, you should without fail understand - what is the difference between outsourcing and outstaffing of working personnel.

To do this, we first define the definitions of concepts:

• Outsourcing is a delegation of authority, a form of labor organization in which non-core functions of the company are transferred to third-party performers. Most often, this is the management of personnel and legal issues, accounting, less often - the production of secondary and auxiliary products, the sale of goods.
• Outstaffing is a form of employment in which personnel is hired by one organization, but is actually provided “for temporary use” by another company. This is suitable for all sectors of the economy, from production to trade.

Outstaffing is often confused with outsourcing. Meanwhile, these are completely different services. They have legal, legal and functional differences.

Outstaffing companies provide their staff to third parties for a period of 9 months or more. A feature of this form of recruitment is that legally employees remain registered with the outstaffing company. Connects them with the customer company temporary contract, according to which the company undertakes to pay the agreed amount after the completion of 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 is 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, so there are often scammers among outsourcers.

Comparison table with the main differences between outsourcing and outstaffing

The table fully reflects the main differences between outsourcing and outstaffing:

Characteristic	Outsourcing	Outstaffing
Target	Transfer of the implementation of business processes and functions of the enterprise to third-party performers.	Providing the customer with qualified personnel.
Place of employment	The outsourcing company works remotely. The customer receives the result of labor. Employees carry out their activities in an outsourcer company. A company that has placed an order for a certain type of work is provided with a finished project or a service.	The territory of the customer in compliance with the internal charter and work schedule. The entire work team carries out its professional activities on the territory of the main employer, i.e. customer company. Accordingly, workers must obey the rules that are established by this organization.
Treaty	About the provision of services and About maintaining the confidentiality of data.	On the provision of staff.
Subject of payment	The amount of work performed, its quality and volume. The customer does not pay tax fees, sick leave, holidays, bonuses. When outsourcing, a specific result is paid, i.e. he is not interested in the ways in which he was reached. That is why, he is of little interest in the working hours of employees, the main thing is that the service provided be of high quality.	Human resources provided by the outstaffer. The customer does not pay tax fees, sick leave, holidays, bonuses. The entire process of work takes place on the territory of the customer, so he can control its progress, execution, as well as make claims and demands. Accordingly, it is the entire work process that is paid.
Risks	information leak; losses due to low quality of services; decentralization of the budget.	change in pricing; non-recognition of taxation of expenses; labor inspectorate claims.
Advantages	reducing the cost of funds by 20-30%; high-quality performance of highly specialized works; the reliability of the result.	fund cut wages up to 50 %; filling in unpopular specialties; reduction of staff turnover problems; simplified tax payment system.
Cooperation scheme	When outsourcing, it is the service that is paid for that is why the authority of the customer does not apply to the involved employees.	The contract clearly states that the customer is provided with a certain number of employees. The executor of the contract can be a different organization, including a recruitment agency.
Legislative regulation	Article 779, clause 1 of the Civil Code - the possibility of concluding a contract for the provision of services. Letter of the Federal Tax Service No. 20-12 / 066875 - the agreement is a contract for the provision of services.	Article 56, clause 1 of the Labor Code (2016 edition) - prohibition of agency work. Art. 18.1 clause 6 of the Federal Law No. 1032-1 - the admission of the withdrawal of employees out of state if the recruiter meets certain criteria.

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

Order of conduct

The procedure for outsourcing may differ depending on the scope of the enterprise, various nuances. In standard format, this procedure looks like this:

1. The entire scope of work is evaluated. The rates of the employee, the main terms of the contract are agreed upon.
2. A special agreement is being formed. After that, it is signed by customers and performers of the work.
3. The outsourcing employee implements all the tasks assigned to him, according to the schedule attached to the contract.
4. Reporting is generated in a predetermined form, upon completion of all work.
5. Payment is made in the prescribed manner. In the absence of disagreements, an act of work performed is drawn up.

Outstaffing is carried out as follows:

1. Personnel-providing organization to study the scope of activities. Clarifies the tasks - which will need to be solved at the expense of employees.
2. Based on the data received, a contract is formed, which reflects the exact cost of the service.
3. After signing the contract, the workers begin to perform their work.

It must be remembered that the outstaffing process itself does not necessarily imply the final action - like a contract for outsourcing.

The main differences in the contract