What is outsourcing outstaffing. Outstaffing and outsourcing: differences, pros and cons, examples

In modern commercial activities, such personnel technologies as outstaffing and outsourcing are widely used. They are often confused with each other, and therefore both terms need clarification.

Definition of terms

They call the transfer of secondary activities of the company for service to another company. Among these areas it is worth mentioning accounting, legal support, personnel management, maintenance.

They call such a personnel management scheme in which one organization (outstaffer) hires specialists, and another company (customer) rents them. Outstaffing is used in all areas of the economy, from production to trade.

The main differences between outsourcing and outstaffing

1. 1. Design and work schedule. The representative of the outsourcing company has a flexible work schedule. He has no job assigned to him. He is paid only for the work performed (although advances are not excluded). His colleague, hired as an outstaffer, receives a salary every month, but is forced to work, as a rule, on the territory of the customer.
2. 2. Recruitment procedure with outstaffing differs from the hiring procedure with outsourcing. In the first case, hired specialists enter into legal relations with the executing company (outstaffer), but perform the functions of the customer company. In the second case, employees fulfill the terms of the contract concluded between the customer company and the outsourcing company-executor.
3. 3. Application area. Outsourcing is mainly used to solve “intellectual” tasks. This concept is often associated with accounting and legal services, information technology. Outstaffing is more universal. Representatives of working specialties often work under an outstaffing agreement.
4. 4. Interaction scheme. Outsourcing is almost always carried out according to the same scenario: the client company transfers some of its functions to representatives of the outsourcing company.

   Outstaffing involves two schemes of interaction between the parties:

   The customer company officially dismisses several employees, and the executing company officially employs them. From now on, they are on the staff of an outstaffer, and continue to work for the customer (under the same conditions and at the same place). The relationship between the customer and the contractor is governed by a contract for the provision of personnel.

   The executing company selects qualified workers, and then provides them for temporary use to the customer. These workers may belong to the outstaff staff, or they may be recruited on the side.

It is noted that in terms of economic benefits, outsourcing is more effective, since when implementing this model, the outsourcing company controls the quality of work of its employees. The outstaffing company does not have such an opportunity. When outstaffing, the responsibility for the quality of work is assigned solely to the staff.

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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 legislative norms, it is imperative to 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. They are connected with the customer company by a temporary contract, according to which the company undertakes to pay the agreed amount after the completion of the 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, 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:

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

Outsourcing refers to the receipt by a third party of the functions of a subcontractor on the basis of a long-term agreement. Outstaffing implies the partial removal of personnel from the state, their registration with the outstaffer. A gratuitous contract for the provision of services is drawn up. Outsourcing and outstaffing have a difference in that in the first case, the company transfers part of the authority to contractors, and in the second, part of the employees. The similarity of the processes is to minimize risk situations, reduce the cost of resources and finances. With non-core activities of the enterprise, taxes are optimized and personnel costs are reduced.

Outsourcing Features

Outsourcing processes are the performance by a third-party organization of non-core functions of the customer company. In some cases, "foreign resources" have an appropriate level of specialization, knowledge, as well as experience and technical means to perform tasks.

Outsourcing services are relevant if:

• there are vacancies for a short time - part of the staff went on vacation, on sick leave or on maternity leave;
• there was a need for seasonal low-skilled or unskilled labor;
• an urgent project is required, but there are no specialists in the state or the number of personnel is small;
• it is necessary to conduct marketing research, advertising presentations or use the services of logisticians, accountants, IT specialists;
• you need to reduce labor costs, reduce the number of personnel tasks or reduce tax losses.

There are no provisions on the outsourcing contract in Russian legislation. However, under Art. 421 of the Civil Code of the Russian Federation, citizens can freely provide services. In paragraph 1 of Art. 779 of the Civil Code indicates the possibility of concluding such an agreement. According to the letter of the Federal Tax Service No. 20-12 / 066875, an outsourcing contract is a contract for the provision of services with the transfer of functions for no more than 1 year.

What you need to know about outstaffing?

The difference between outstaffing and outsourcing is the partial removal of personnel from the company's staff without losing their jobs. Outstaffing services are required in the following cases:

• staff reduction without loss of qualified specialists;
• financial savings for paying social tax, administrative costs, personnel records and salaries;
• legal protection of personnel during inspection by control bodies;
• hiring regional staff without opening branches and representative offices;
• removal from the staff of applicants for the period of probation.

According to paragraph 1 of Art. 56 of the Labor Code of the Russian Federation, adopted in 2016, agency labor processes are prohibited. However, ch. 1 st. 53 does not exclude the services of outstaffers or private recruiting agencies. Therefore, the functions of the employer are performed by a recruitment agency. According to paragraph 6 of Art. 18.1 of Federal Law No. 1032-1, part of the personnel can be transferred if the company:

• has an authorized capital of at least 1 million rubles;
• timely pays taxes and other obligatory payments;
• has a gender with higher education. The manager must have worked in the field of employment for 2 of the last 3 years.

The recruiting company maintains documentation in accordance with the legislation of the Russian Federation, pays salaries, benefits, compensations, transfers taxes, submits reports and resolves labor disputes.

Outstaffing contract template

A contract for the provision of personnel is necessarily concluded with an employee, but its unified form is not established by law. It is allowed to draw up a personnel outstaffing agreement based on the model, which contains:

1. Document's name.
2. The serial number of the agreement in the accounting records.
3. Date and place of signing.
4. Data on the parties that entered into the contract - the Client, the Contractor.
5. Information about the subject of the contract - it is necessary to indicate the fact of personnel loan on the basis of a written application.
6. List of rights and obligations of the parties.

The agreement is drawn up on the basis of an employment contract. It prescribes a temporary direction for work at another enterprise with an entry in the work book.

A sample outstaffing agreement can be downloaded from the link below:

Detailed comparison of outsourcing and outstaffing

Employers and employees may misidentify third-party service delivery because the business processes themselves are recent. The main differences between outsourcing and outstaffing are fully reflected in the table.

With the actual difference, outsourcing and outstaffing do not allow you to control the staff, influence it through bonuses, and also carry out the dismissal procedure.

The concept of outsourcing (outsourcing) can literally be translated as "external source". In practice, it most often means the transfer of the functions of certain internal departments (for example, the personnel department and the accounting service) to some external performer.

Production outsourcing is the transfer of any production functions or business processes. At the same time, the main goal is not to save money, as one might think with a cursory analysis, but to free up resources for developing new directions or focusing efforts on really important things.

Accounting outsourcing actively began to develop in 1996, when the law "On Accounting" was adopted. It was this legal act that made it possible to transfer accounting to any external organization specializing in this type of service. It is worth noting that today this particular practice is very common (unlike other types).

The main problem of outsourcing development in the Russian Federation is the lack of a legislative framework that would regulate the relationship between customers and contractors. This concept was not reflected in the Civil Code. There is no clear legal structure, scientific classification of contracts, so everyone draws up such transactions based only on their own assumptions.

Outstaffing

The term outstaffing, in turn, can be translated as "freelance". The essence of the mechanism is as follows. Part of the company's personnel is removed from the main staff and is registered in the executing company. A newly minted employee fulfills the same obligations, but on behalf of a new company, while receiving remuneration.

The difficulty lies in the fact that employees, while actually continuing to work at the same place and perform the same functions, switch to a contract for the provision of paid services by the customer company, as well as to work on a travel list by the contractor company. So, the main difference between outstaffing and outsourcing lies in the relationship of the customer to the staff.

In fact, all legal relationships end at this stage. The outstaffer does not bear any responsibilities, except for work with the staff. The actual result is not guaranteed in any way, and they are directly connected with employees only on paper. Responsibility, by the way, lies entirely with the staff.

In recent years, the Russian language has been actively “enriched” with new words borrowed from foreign cultures. This is especially evident in areas such as management, trade and marketing. Outsourcing and outstaffing literally 7-10 years ago were not familiar even to experienced managers, but even now these areas are considered incredibly promising for business. What are the differences between them and what form is suitable for different companies?

Definition

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- a form of employment in which personnel are hired by one organization, but are actually provided “for temporary use” by another company. This is suitable for all sectors of the economy, from production to trade.

Comparison

So, the general principles of the division of labor turned out to be relevant for Russia as well. So, outsourcing is the transfer of non-core functions to a third-party company. Most often, these are personnel matters, accounting, legal services. Outstaffing is the removal of personnel from the state when an employee is employed in one company, but actually works in another. With such an organization of labor, he has his own workplace, job description and receives a salary.

The outsourcer is not included in the state under any circumstances. He has a flexible work schedule, no workplace, and payment is made after the fact. It is worth noting that both schemes in Russia are on the verge of the law, since the legislative framework in this area is at the stage of formation.

Findings site

1. The form of labor. Outsourcing is the provision of services or turnkey work, outstaffing is the temporary provision of personnel for certain tasks.
2. Recruitment. In outsourcing, a contract is concluded with the contractor; in outstaffing, the staff is actually employed in another company.
3. Transfer of functions. Outsourcing is characterized by intellectual tasks - accounting, personnel management, legal support, outstaffing - both complex and simple work.
4. Salary. The outsourcer receives remuneration “after the fact”, while outstaffing, the staff is “on the payroll”.