Outsourcing and outstaffing are the main differences. The main differences between outstaffing and outsourcing

Today, outstaffing is gaining more and more popularity. Often this concept is confused with outsourcing. These terms are not full synonyms, but the phenomena themselves have similar features.

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In some cases, the current legislation in this regard overlaps with respect to both phenomena.

In fact, the use of outsourcing and outstaffing pursues the same goal - the performance of any tasks at the expense of employees.

But at the same time, the process of interaction between the employer and such an employee differs significantly.

General information

The very concept of outstaffing, like outsourcing, came to us from abroad. Back in 1970, a crisis arose in the United States of America, as a result of which the number of employees in many enterprises was reduced to a minimum.

But at the same time, there was still a need to perform a certain amount of work. This issue was resolved by involving employees from outside.

Today in the territory of the Russian Federation, many enterprises are also switching to austerity mode due to the difficult economic situation.

That is why the use of outstaffing and outsourcing is becoming more and more relevant. Since in this way it is possible to significantly reduce the costs of implementing certain tasks.

It is important to remember that the legislative framework governing this issue is still under development. That is why outsourcing and outstaffing is on the verge of the law.

To avoid various kinds of problems and predicaments, you should familiarize yourself with the questions:

• definition of concepts;
• functions performed;
• legal base.

Definition of concepts

To understand the peculiarities of procedures for interaction with personnel, you should first understand the concepts of outsourcing and outstaffing.

Phenomena of this kind have many similarities, but the implementation process itself is significantly different. It's worth looking into the differences.

In fact, both concepts represent a special format of citizens of the Russian Federation.

Outstaffing is a special labor relationship. At the same time, all employees working on this basis perform their functions only in any one organization.

At the same time, it is directly concluded between individuals and the organization. It sort of “rents out” its hired workers for the implementation of a certain task.

Outstaffing features are as follows:

• there is a workplace;
• the job description is formed;
• wages are calculated;
• employment takes place in one enterprise, but the actual work is carried out in another.

Outsourcing, in turn, is a procedure for transferring various kinds of non-core functions of an organization to the office of outsourcers.

Most often, such agreements are concluded for the implementation of accounting procedures, personnel matters, and other specific functions.

The outsourcer simply does not have a permanent workplace, while his schedule is flexible, and payment for work is carried out after the fact. It is worth exploring in as much detail as possible all the differences between the concepts.

Functions performed

The difference between outsourcing and outstaffing primarily lies in the functions performed by employees.

Outsourcing implies the implementation of any specific tasks. At the same time, outstaffing is the process of attracting employees to perform core work.

That is why this phenomenon always arouses close interest of the Federal Tax Service. Outstaffing is often a way to avoid taxes.

This is due to the peculiarities of tax and accounting. Therefore, despite the absence of a clearly defined legislative framework, the use of outstaffing is possible only in special cases.

For example, if any enterprise practices a continuous production cycle. But at the same time, the proper amount of working resources is missing.

The use of outstaffing is often carried out in trade, in production, in other circumstances. Also, outsourcing and outstaffing can significantly reduce the cost of doing any activity.

Involvement in the performance of certain tasks for a short time makes it possible to minimize the cost of paying employees.

Often, the activities under consideration are part of tax planning and financial optimization of the enterprise.

Legal framework

Despite the absence of any specialized legal and regulatory documents covering this issue, it is important to remember the need to work only within the law.

The fundamental regulatory documents in this case are the Labor and Civil Code of the Russian Federation.

The most important NAPs addressing these issues are as follows:

It is important to know that the conclusion of an outstaffing agreement, outsourcing on the basis of a contract for the implementation of certain tasks should not violate the article.

Otherwise, this kind of incident may be of interest to the labor inspectorate, the Federal Tax Service. Often, many enterprises try to avoid paying taxes in this way.

It is also worth familiarizing yourself with the judicial practice on attracting outside personnel to perform core and non-core work:

An important document is. Since, in fact, both contracts (atustaffing / outsourcing) fall under the definition.

The concepts of a contract and a household contract are applicable. You should also remember the importance of complying with the provisions of the Tax Code of the Russian Federation. Violation of its main provisions is not allowed.

What is the difference between outsourcing and outstaffing

To avoid unintentional violation of legislative norms, it is imperative to understand what is the difference between outsourcing and outstaffing of working personnel.

The most important differences between this concept, first of all, include:

• the format of labor services differs;
• the procedure for selecting and hiring the staff itself;
• performance of certain functions;
• payment for work performed.

So, outsourcing always implies the fulfillment of all tasks on a turnkey basis, the contract always indicates the boundaries of responsibility.

Outstaffing, on the other hand, is the withdrawal of personnel from the staff, the provision by an employee of another company to perform certain tasks. The recruitment procedure distinguishes the format of the contract.

When outsourcing, the agreement is signed directly by the hired employee and the employer, when outstaffing - between two legal entities.

Implies specific and narrow tasks. This is a personnel matter, tax accounting and other things like that.

At the same time, outstaffing can mean both the solution of complex, intellectual tasks, and simple physical labor (skilled and not very skilled).

One of the most important differences relates to the way wages are paid. In the case of outsourcing, the contractor receives the amount due to him in fact - immediately after the completion of the task.

In the case of outstaffing, all hired personnel are actually “on the payroll”. Usually the payment is made twice a month, all in accordance with the Labor Code of the Russian Federation.

To understand all the features of the procedures of the type in question, it is necessary to familiarize yourself with the following questions in advance:

• procedure for outstaffing and outsourcing;
• main differences;
• Advantages and disadvantages.

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:

Outstaffing is carried out as follows:

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

Video: outstaffing in a crisis

Therefore, the contract can be open-ended and terminated only if there is a corresponding desire on the part of one of the organizations.

Main differences

In recent years, in order to save money, more and more employers use outsourcing and outstaffing. The English language even has a new verb “to bangalore”, which means “dissolve the IT department and outsource business from India”. We figured out how these two types of hiring employees differ, what are their pros and cons.

Outsourcing and outstaffing of personnel - what is it?

Both of these concepts denote cooperation with a performer who is not a representative of your company. However, despite the similarities, the differences between outsourcing and outstaffing are more than significant.

Outsourcing- This is the transfer of work functions to a third-party company or individual who is not directly related to your organization. As in the case of IT specialists from India: you enter into a service agreement with performers (a company or individuals), forget about equipping workplaces, taxes and insurances, pay only wages (often lower than for full-time employees), and get service and reporting.

Outsourcing is required in cases where:

• reduce the administrative burden
• avoid high taxes and salaries,
• connect additional resources for seasonal work
• find a temporary replacement during the vacation of an existing employee.

Outstaffing- type of "lease" of personnel from a third-party company. The mechanism is as follows: you turn to an intermediary (mostly recruitment agencies) and make an application - what level of staff, for how long and for what you need. A recruitment agency looks for candidates and concludes a service agreement between you. You pay a fixed amount to a recruitment agency for each employee and assign the hired employees to perform some tasks.

Outstaffing is most often resorted to when:

• you need to solve a single large problem, and there are not enough full-time staff for this,
• want to avoid legal problems when hiring foreigners,
• want to save on taxes and salaries.

You can call a taxi, pay money, and think about nothing else. It is very similar to outsourcing.

Outstaffing starts when you rent a car. The company you contacted selects a car according to your requirements - model, engine size, horsepower, receives money and expects you to return the car on time.

Learn Standard outstaffing contract template:

• the customer provides everything necessary for work (fills in gasoline, chooses the road);
• the customer pays the money to the recruiting company (rather than leaving the money in the glove compartment of the car);
• the customer requires the performance of only the agreed services (and does not transport the wardrobe to the country house in a passenger car).

The outstaffing agreement gives more freedom, because the customer does not acquire a solution to a specific problem, but a “tool”, with proper use of which, you can manage to do 3 times more for the same money. However, with greater freedom comes more responsibility: the customer will have to create all conditions for work, direct and control employees.

If you need help to determine what will be effective for your company, then order an audit. Our business analyst will contact you, monitor the entire business process and suggest the most profitable option.

What is the difference between outsourcing and outstaffing?

We have collected the main features of the two types of hiring in a single table to make it clearer. So, outsourcing and outstaffing are the differences:

As we can see, the difference between outsourcing and outstaffing is quite significant, and apparently, the former wins. It is enough that outsourcing in Russia is not only dangerous as a violation of the law, but also not always as effective as in the case of outsourcing.

What industries benefit from outsourcing?

There is a stereotype that outsourcers can only be used in the IT field. There is some truth in this - this is really the most “convenient” area for remote work. But that's not all: among the industries leading in terms of the number of outsourcing, one can name accounting, logistics and jurisprudence.

In addition, the following works are often outsourced:

• provision of food for employees;
• cleaning and inventory;
• maintenance of consumer service centers;
• product repair;
• office printing (a set of printed pages);
• call centers.

Another stereotype is related to scale - they say that only large corporations can use outsourcing and outstaffing. In fact, this is a real life saver for small businesses. Only if it is more convenient for a large company to use the services of outsourcing companies or hire staff in bulk, then a small business may well rely on individuals. You cannot pay for the services of a full-time accountant, and your accountant friend is on maternity leave? Consider both saved.

According to a study by the independent organization Whitelane Research, 89% of employers who use hired labor are satisfied with outsourcing contracts (2016). If you correctly approach contracts with freelancers, then your company will probably also fall into this percentage.

Reading 9 min. Views 67 Published on 06/10/2018

Every person who is looking for a job faces outsourcing agencies. Such services help large enterprises acting as customers to find the necessary personnel. Employees themselves are not required to make financial payments to outsourcing services for the provided workplace. In business terminology, you can also hear about such a thing as outstaffing. These terms have a similar meaning, but are not synonymous. Below we propose to consider how outsourcing differs from outstaffing, as well as talk about the advantages and disadvantages of these types of activities.

Outsourcing and outstaffing are two foreign terms that have become firmly established in the everyday life of recruiters

The meaning of the term "outsourcing"

The first prototype of outsourcing appeared several centuries ago. This type of activity involves the restructuring of a large company in order to transfer certain functions to companies acting as contractors. This approach to the issue of division of labor activity allows to achieve high results. Today, not only large enterprises, but also small firms can resort to outsourcing services.

According to researchers, the productivity of an employee who performs several production tasks is significantly lower than the performance of narrow-profile employees. This means that the distribution of labor responsibilities allows you to increase the speed of the production process and increase the productivity of staff. According to statistics, approximately eighty percent of large foreign companies work closely with outsourcing services. Such cooperation allows to increase the quality of products or services provided.

The use of "external" workers allows you to reduce production costs and reduce the amount of time required for the production of marketable products. This step allows you to improve the quality of the product without increasing its cost. The types of services provided by outsourcing services may differ depending on their field of activity. In most cases, such firms provide services in only one direction. Outsourcing is highly popular in the field of construction, legal and financial issues, as well as the IT industry.

Representatives of the above areas have the highest demand. Not every employer can afford to keep a highly qualified specialist in his staff. The development of outsourcing has a positive impact on the country's economy, as each entrepreneur has the opportunity to optimize his business in order to achieve better results.

The meaning of the term "outstaffing"

What is the difference between outsourcing and outstaffing? In order to answer this question, it is necessary to carefully study the meaning of the last term. Outstaffing appeared due to the development of management and is one of the most effective ways to reduce production costs. Outstaffing is a kind of rental of employees by a third-party company for a certain period of time. In English, the term in question is used to refer to freelance workers.

It is important to pay attention to the fact that in the case of outstaffing, the customer concludes an agreement not with the agency itself, but with its employees. On the basis of this agreement, agency employees are temporarily subordinated to the customer. The contract concluded between the parties indicates the amount of work to be performed by the contractor. In simple terms, such employees are on the staff of one company, performing their labor duties in a third-party organization.

Outstaffing is temporary. The need to attract freelancers may arise in the temporary absence of the main employee. Also, such a need may be associated with the launch of a new short-term project.

The ability to distinguish between the concepts under consideration helps the employer to optimize their own business. When concluding an agreement with outstaffing companies, the customer disclaims the obligation to draw up personnel documentation and tax payments. As a rule, these obligations are assigned to the company providing temporary workers. In addition, the employer has the right to terminate the contract at any time without paying mandatory payments to the employee. It is this feature of the direction in question that caused the correction of the fifty-third article of the Labor Code. According to the new law, the term of the contract for the "lease" of staff should be more than nine months.

Functionality

In order to understand the difference between the concepts under consideration, you should familiarize yourself with the functionality of these services. It is important to pay attention to the fact that these companies specialize in various areas of the service sector. Outstaffing and outsourcing services provide the following types of services:

1. Formation of accounting documentation, tax statements and calculation of the salary fund.
2. Creation of computer programs and applications for smartphones.
3. Construction and repair work.
4. Cleaning of business centers, private real estate objects and adjacent territories.
5. Solving legal and personnel issues.
6. Development of a marketing policy, carrying out promotional activities, promotion of goods on the market.
7. Vehicle maintenance.

In addition to the above positions, there are less common areas of activity. It is necessary to emphasize that outsourcing and outstaffing companies can offer the same services to the customer. The only difference is the order in which personnel are provided.

Differences between outstaffing and outsourcing

Outsourcing and outstaffing - the differences between these values ​​are closely related to the legal component. According to the current legislation, the minimum term of the agreement concluded between the customer and the outstaffing service must be nine months. It is important to note that the employees transferred to the customer are on the staff of the contractor. The basis for conducting this type of labor activity is an agreement concluded by the parties. At the end of the term of the agreement, the customer undertakes to pay the contractor the amount specified in the contract.

The main purpose of outsourcing is the transfer of certain functions to a third-party organization. This step allows you to reduce production costs by eliminating one or more positions from the staffing table. It is important to pay attention to the presence of additional specific differences. Outstaff employees receive not only labor obligations, but also job descriptions. The difference between such an employee and the rest of the staff is the temporary performance of official duties. As a rule, the working day of such workers does not correspond to the standard schedule. The main task of the outstaffer is to solve the problem.

It should be mentioned separately that due to the lack of strict regulations governing the activities of outsourcing services, the customer may encounter fraudsters represented by performers.

Many newcomers to the business think that outstaffing and outsourcing are synonymous. This opinion is supported by the high similarity of the directions under consideration. Considering the similarities and differences of these areas, special attention should be paid to financial issues. By attracting freelance workers, the entrepreneur gets the opportunity to optimize the procedure for paying taxes and reduce production costs. This step has a positive effect on production speed and leads to an increase in the quality of manufactured goods. Based on the foregoing, we can conclude that the work of freelance specialists increases the efficiency of the entire enterprise.

Turning to such agencies allows you to reduce the risk of a force majeure situation due to the high workload on key personnel. The factor that unites both considered values ​​is the focus on reducing financial costs by reorganizing the internal structure of the company.

Cons and pros

The advantages and disadvantages of each direction deserve special attention. Outsourcing has gained well-deserved popularity over the past few years. The demand for such services is explained by a decrease in time and financial costs. In many large enterprises, there is often a need to address specific production issues. As a rule, the solution of such tasks is assigned to ordinary employees of the company. Lack of experience and necessary knowledge can lead to a decrease in the effectiveness of the production process. The only way out of this situation is to temporarily hire a specialist of the required qualification.

The conclusion of an agreement with contractors on the provision of temporary workers gives the customer freedom of action. Such employees do not receive vacations, severance pay or other social benefits. If the “leased” employee falls ill, the executing company will put another employee in his place. Interaction with such agencies allows the employer to prevent the emergence of various controversial issues and conflict situations with personnel.

In addition, the performers undertake to solve all production tasks within the period specified in the contract. Since these agencies have a direct interest in providing quality services, the employer receives a guarantee of a timely and effective solution to his issue.

Outstaffing and outsourcing have a number of similar disadvantages . As a rule, all the shortcomings of the directions under consideration are associated with the specifics of the service package. An incorrectly set production goal can have a negative impact on the result of the labor activity of freelancers. Many employers consider this situation as a negligent attitude to their own obligations on the part of the contractor. In order to prevent the occurrence of such a situation, the employer should approach the issue of drawing up the terms of reference with increased attention.

It should also be separately mentioned that the bankruptcy of the contractor may cause non-performance of contractual obligations. Separately, it is necessary to highlight the risk associated with the disclosure of confidential information by freelancers. In order to exclude the development of this situation, a non-disclosure clause should be included in the contract.

The procedure for concluding an agreement

Outsourcing and outstaffing The difference between these areas lies in the order of drawing up the contract. When concluding an agreement with an outsourcing agency, the agreement must specify a clear scope of future work. A separate paragraph indicates the number of employees required to solve the production problem and the expected results. You should also discuss the payment procedure in advance.

In the contract with the outstaffing company, you need to specify the required number of freelancers. In a separate section, all points related to the payment of their labor activity are recorded. In addition, the contract between the parties specifies various legal nuances related to the interaction between the employer and freelancers.

It should be noted that with outsourcing agencies, the customer concludes a full contract. When interacting with outstaffing companies, an agreement is concluded on hiring temporary workers. The order of interaction between customers and contractors is described in the fifty-sixth article of the Labor Code.

Conclusion

The directions under consideration have common features, due to the focus on reducing production costs and increasing the effectiveness of the production process. Each of these areas has its own specific subtleties and nuances. The customer of such services needs to carefully study all the features of the service of interest in order to be protected from the occurrence of force majeure situations. The main difference between outsourcing and outstaffing is the form of hiring temporary workers and the procedure for concluding an agreement.

In contact with

If you have ever looked for a job, then most likely you have come across outsourcing companies. They help companies hire workers for a fixed fee. At the same time, the employees themselves do not need to make any cash payments. Along with outsourcing, there is the concept of outstaffing. They are similar, but not synonymous. You can read about the difference between outsourcing and outstaffing, and what are the pros and cons of these areas, in this article.

History of outsourcing

The term "outsourcing" comes from the English expression "outside resource using", which translates as "use of external resources". The profession of a recruiter appeared in the 19th century, just then, of course, no one called it that. The first outsourcers can be considered people who hired sailors for long voyages. They looked for staff, agreed on wages and received their percentage of the proceeds. Peter I can also be called a kind of recruiter, because he attracted hundreds of personnel from abroad for the construction of St. Petersburg, among whom were engineers, architects, teachers, nobles.

In the 19th century in Great Britain and some other European countries, services for hiring security guards, household staff, accountants and stenographers began to gain popularity. In the 20th century, outsourcing began to develop rapidly. One of the key figures can be called the company General Motors, which received a powerful impetus for development precisely thanks to the attracted qualified personnel. In the 1950s, the first highly specialized companies began to appear in the United States, which were engaged in the search and recruitment of personnel for a specific area. For example, an IT outsourcing company or a company that hires accountants for small businesses. Such services became very popular as they helped to save the budget by not hiring full-time employees. Outsourcing came to Russia quite late: already in 1990. The first agencies had limited capabilities, but gradually employers realized the full benefits of attracting employees from outside. At the moment, outsourcing technologies are used in many business structures and government organizations.

What is outsourcing?

Outsourcing was not in vain popular several centuries ago. It is based on the idea of ​​separating individual business processes and delegating some of the tasks to third-party companies. The division of labor is very effective, and not only for large organizations. Conducted studies prove that when an employee works in multitasking mode, his ability to work decreases, and the quality of task performance suffers. Transferring part of the responsibilities to a professional has a positive effect on the speed of work and the result. More than 84% of company owners are satisfied with the outsourcing services rendered. Among other things, the concept of outsourcing helps to improve the quality of the product. Thus, attracting personnel "from the outside" has an impact on three sides:

• Time of production or service.
• Cost of goods.
• Quality.

There is a certain classification of outsourcing companies by industry and production. As a rule, one firm specializes in only one direction. What industry-specific recruitment companies can you meet?

• Construction.
• Accounting.
• Financial.
• Legal.

These are the most demanded directions in the modern world. Attracting qualified personnel on their own can be quite difficult, so companies often use the help of outsourcing firms. The benefits of this practice are obvious: for example, in America, where hiring has been flourishing for decades, labor efficiency is several times higher than in Russia.

Outstaffing

The development of management dictates new criteria for optimizing business processes. One of such technologies is personnel outstaffing, which allows to reduce production costs. Many people confuse it with outsourcing. But there are differences between outsourcing and outstaffing, despite the similar sounding of the terms. What is outstaffing? This is a kind of "loan" of personnel from another organization that has the necessary personnel. This is indicated by the origin of the word: out - “outside” and English. staff - "staff". The employing company concludes an agreement not with another enterprise, but with employees who are transferred to its temporary disposal. At the same time, they conclude a temporary agreement, which prescribes a list of works that they undertake to perform. That is, formally, employees are on the account of one enterprise, and perform the tasks of another.

Outstaffing is usually a temporary measure that is required under different circumstances:

• During maternity leave or hospital staff.
• For short term projects.
• To perform work with harmful working conditions.

The concept of outsourcing and outstaffing helps to choose the right way to attract staff. Outstaffing gives employers unlimited freedom of action. They are not required to deal with tax deductions and paperwork - this is usually taken over by the company that provides personnel. Also, the employer may at any time refuse the services of such an employee, without explaining the reasons for dismissal and without paying a penalty. Therefore, in 2016, amendment 53.1 was introduced to the Labor Code, which limits the outstaffing of personnel. Now temporary staff must work in the company for at least 9 months.

Functions

In order to answer the question of how outsourcing differs from outstaffing, you must first understand what functions they perform. Outsourcing, like outstaffing, can take on any functions of the enterprise. The most common tasks are:

• Calculation of wages, taxes, preparation of accounting reports.
• Software development.
• Cleaning of private apartments, offices, buildings.
• Construction works: erection and repair of buildings and complexes.
• Maintenance of ground and air transport (airports, railways).
• Legal support of transactions and activities of the company.
• Advertising companies, development and promotion of new products.
• Personnel management, cost optimization.

For any function or task that you need to solve, there is a specialist who will do it in the shortest possible time and with high results. That's what outsourcing companies are for. They allow you not to hire permanent staff, but from time to time to look for professionals for the right purposes.

What is the difference between outsourcing and outstaffing

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.

similarity

If everything is clear with the differences, the similarities between outstaffing and outsourcing are even more obvious. Both firms use their reserves for the following tasks:

• Risk minimization.
• Improving product quality and company efficiency.
• Decrease in financial expenses.
• Tax optimization.
• Acceleration of production processes.

Despite the differences between outsourcing and outstaffing, both directions are designed to save the company money on the biggest expense item: staff salaries.

Advantages

Outsourcing has become quite popular lately, and many companies are considering using the services of recruitment companies. What are the advantages of outsourcing and outstaffing?

• Saving money and time is one of the most significant arguments in favor of outsourcing. Often, small companies accumulate a lot of specific work that requires certain knowledge and skills. In the absence of a better alternative, it is blamed on employees of the company who do not have such experience. The result leaves much to be desired, performance drops. In this case, the involvement of temporary professionals can be a good way out.
• Freer contractual relations make it possible to terminate the contract in accordance with the procedure established by law. There are still significant concessions regarding the involvement of personnel "from outside".
• Outsourcing can prevent many unpleasant situations. For example, in case of dismissal, maternity leave or sick leave, the company will simply offer another professional. Also, an agreement with an outstaffing company can save you from labor disputes and tax reports.
• You can be sure that your tasks will be completed on time. An outsourcing company is interested in the high quality of its services, so employees perform work efficiently and on time.

Flaws

Outsourcing and outstaffing also has certain disadvantages, which are associated with the peculiarities of these areas.

• An incorrectly performed task is the result not so much of the negligence of hired employees as of an incorrectly set task. Therefore, when setting goals, it is important to draw up a technical task in more detail.
• Bankruptcy of an outstaffing company may lead to default.
• By outsourcing some of the tasks to third-party employees, you risk the company's privacy. Of course, a non-disclosure clause will be included in the contract, but this does not exclude the possibility of industrial espionage.

Personnel leasing

In addition to outsourcing and outstaffing, there is staff leasing, which is the hiring of seasonal workers. One party in leasing is recruitment agencies that look for and provide the necessary personnel. On the other hand, there are enterprises that need temporary staff. For example, for seasonal cleaning of the territory or repair of the premises. The difference between leasing and outstaffing is that in the latter case, the staff is provided by another, non-core organization. And leasing, as a rule, is handled by professional recruitment agencies.

Outstaffing and outsourcing agreement

The difference between outsourcing and outstaffing lies not only in the forms of personnel involvement, but also in the contract. The following parameters are displayed in the application for the provision of outsourcing services:

• The nature and scope of work.
• Payment.
• The number of employees involved from outside.
• The result of their activities.
• Preservation of confidentiality.

When concluding an agreement for outstaffing services, the employer carefully writes down:

• The number of involved employees.
• Labor payment.
• Additional legal and legal agreements with temporary personnel.

Thus, the main difference between outsourcing and outstaffing agreements is that with outsourcing services a full-fledged agreement is concluded, and during outstaffing only an agreement on the provision of personnel is valid. But even for this, the recruiter must meet certain criteria stipulated by Article 56 of the Labor Code of the Russian Federation. The difference between outsourcing and outstaffing is clearly visible at the legal level, so it is incorrect to compare these concepts with each other.

The world of modern business and production has its own language and its own terms, which are not inferior in complexity and intricacy to the world of science or youth slang.

"Start-up coworking in a loft open space" sounds like a spell to summon demons, but it's actually starting a business to offer comfortable workplaces in one large office space with an industrial design. How many words are saved when using slang!

Fortunately, there is no need to memorize all these terms, since most of them occur from English. It is enough just to translate the terms into Russian in your head, and you get an approximate interpretation of strange words. But sometimes the terms have an almost identical translation.

For example, a couple of terms - outsourcing and outstaffing - have similar origin and meaning. What do they mean, how to distinguish them and how to use them correctly?

Outsourcing

As mentioned earlier, this term comes from the English language, or rather, the term outsourcing, which can roughly be translated as "using an external resource". It means exactly this - the company's involvement of third-party performers and the complete transfer to these performers of any function in the company.

Most often, functions and responsibilities are transferred to third-party companies that are not do not require close attention or are outside the core business of the parent company.

If no one from your staff wants to be engaged in a certain activity, or maintaining such a workplace will be too expensive, or you just don’t want to inflate the staff and get unnecessary bureaucratic fuss, this activity is transferred “for outsourcing”, to a specialized company that professionally and purposefully deals with this particular function.

Outsourcing can be used practically at any level of professional activity. Most often, the services of an outsourced accountant, hired outsourced security, a translator, and even an incoming cleaner who cooperates with several offices at once and cleans for many companies, ultimately making a big profit, are most popular.

Outsourcing can often be confused with freelance- one-time involvement of a third-party specialist to perform a specific job. Unlike freelancing, outsourcing involves long-term cooperation with the conclusion of a contract and the complete transfer of a function or activity to another company, while a freelancer does not completely replace the labor of his workers with his presence.

Outstaffing

This term is similar in structure to outsourcing. Stuff from English it is translated, among other meanings, also as “staff”. That is, if translated literally, outstaffing is the involvement of third-party personnel? Not certainly in that way. Most often, outstaffing is the reverse process - removal of personnel from the company's staff.

Why is this necessary, what is the point? The withdrawal of personnel to a separate company allows you to focus all the efforts of this company precisely working with staff– payment of taxes, pension contributions, salaries and bonuses, work with holidays and sick days, hiring and firing new employees.

The main company, on the other hand, can focus its attention entirely on its core business, concluding agreement with a subsidiary on hiring employees.

This technique allows you to bypass many different obstacles, for example, the limitation on the size of the staff. Also, all the risks associated with personnel, various unforeseen events and disputes with employees fall on the shoulders of the subsidiary, outstaffing company, which frees the main company from a headache.

Of course, outstaffing opens up a wide field for manipulation and other abuses. Often, so-called “one-day firms” are used as an outstaffing company, which allow companies that order outstaffing to exploit personnel, violating labor laws.

In the event of claims or even lawsuits, the one-day firm simply disappears, leaving the employee with nothing.

The difference between outsourcing and outstaffing

After explaining the exact meaning of the terms, the difference is not difficult to discern. Outsourcing is transfer of any activity to another company. That is, another company undertakes to perform certain work, and how exactly it will do it is already its concern, the customer is only interested in the fact of fulfilled obligations.

Outstaffing is not a transfer, but, on the contrary, a reception, and not an activity, but outside workers. The customer company literally rents workers for its activities, which it will organize and monitor the implementation of. And the outstaffing company undertakes only to provide suitable personnel and assume all contacts and all obligations for working with this personnel.