Outstaffing: what is it? Differences from outsourcing, pros and cons of use. Outstaffing and outsourcing: main differences Outsourcing and outstaffing agreement differences

Outsourcing refers to the acquisition by a third party of the functions of a subcontractor on the basis of a long-term agreement. Outstaffing involves the partial removal of personnel from the staff and their registration with an outstaffer. A free contract for the provision of services is drawn up. Outsourcing and outstaffing have the difference that in the first case the company transfers part of its powers to contractors, and in the second - part of its employees. The similarity of the processes lies in minimizing risk situations, reducing resource and financial costs. During non-core activities of the enterprise, taxes are optimized and personnel costs are reduced.

Features of outsourcing

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

Outsourcer services are relevant if:

• there are vacancies for a short time - some of the staff went on vacation, sick leave or maternity leave;
• there is a need for seasonal low-skilled or unskilled labor;
• an urgent project is required, but there are no specialists on staff 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 outsourcing agreements in Russian legislation. However, according to 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 an agreement for the provision of services with the transfer of functions for no more than 1 year.

What you need to know about outstaffing?

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

• staff reductions without loss of qualified specialists;
• saving money on paying social tax, administrative costs, personnel records and salaries;
• legal protection of personnel during inspection by control bodies;
• hiring regional personnel without opening branches and representative offices;
• removal of applicants from the staff for a probationary period.

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 tbsp. 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, you can transfer part of the staff if the company:

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

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

Sample outstaffing agreement

A contract for the provision of personnel must be concluded with the employee, but its unified form is not established by law. It is allowed to draw up a sample personnel outstaffing agreement that contains:

1. Document's name.
2. Serial number of the agreement in the accounting acts.
3. Date and place of signing.
4. Data about the parties who entered into the contract - Client, Contractor.
5. Information about the subject of the agreement - it is necessary to indicate the fact of the personnel loan based on 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 assignment to 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 the concepts of third-party services because the business processes themselves are new. The table fully reflects the main differences between outsourcing and outstaffing.

Given the actual difference, outsourcing and outstaffing do not allow you to control personnel, influence them through bonuses, and also carry out the dismissal procedure.

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

Explanation of terms

They call the transfer of secondary areas of the company's activities for servicing to another company. Among these areas it is worth mentioning accounting, legal support, human resources management, and technical services.

This is called 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 is not assigned a workplace. 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 customer’s premises.
2. 2. Recruitment procedure in outstaffing differs from the hiring procedure in outsourcing. In the first case, hired specialists enter into legal relations with the performing 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 performing company.
3. 3. Application area. Outsourcing is used mainly to solve “intellectual” problems. This concept is often associated with accounting and legal services, information technology. Outstaffing is more universal. Representatives of blue-collar professions often work under outstaffing agreements.
4. 4. Interaction diagram. Outsourcing almost always follows the same scenario: the customer 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 fires several employees, and the performing company officially employs them. From now on, they are listed as an outstaffer, and continue to work for the customer (under the same conditions and in the same place). The relationship between the customer and the contractor is regulated by the contract for the provision of personnel.

   The performing company selects qualified workers and then provides them for temporary use to the customer. These workers may be part of the outstaffing staff, or they may be recruited externally.

It has been 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. An outstaffing company does not have such an opportunity. When outstaffing, responsibility for the quality of work is assigned exclusively to the staff.

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 personnel leasing and outsourcing, it has become possible to significantly simplify the process of managing personnel policy.

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

Speaking about outstaffing in simple words, we can say that this is an opportunity for a company to transfer its employees to other companies.

Outstaffing – what is it in simple words

Literally translated, outstaffing is the opportunity to use human capital by another company.

The outstaffing customer company itself does not enter into any legal relationship with employees of another company.

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

The total volume of required work, the place and time of its implementation are prescribed by the customer company in a bilateral agreement. Formally, employees are on the staff of one company, but in fact they perform 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 noted that the first term involves the transfer of working capital to the customer company, which undertakes to perform a certain list of works within the time specified in the concluded contract.

Outsourcing means that a third-party company undertakes to perform a number of production functions and non-core business processes, the implementation of which was previously handled by the client company.

In modern Russian practice, outsourcing involves the transfer of personnel or accounting, provision of marketing and transport services, and 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 (as opposed to outstaffing) is in no case part of the client company’s staff. Salaries are paid strictly based on work completed, and the schedule is flexible. Summarizing all of the above, we can summarize the differences between outstaffing and outsourcing.

Differences:

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

Another important difference is the set of responsibilities. Thus, outsourcing is characterized by tasks of an intellectual nature (legal support, accounting and personnel records). 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.

Such an agreement indicates the name and surname of the specialist, as well as the time allocated for the execution of the project, the amount of the 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 reports on the progress and results of the work performed. They indicate 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 draw up any documents that have legal force. The current Labor Code of the Russian Federation does not carry out any regulations regarding the relationship between the customer company and the outstaffer.

Is an individual entrepreneur a legal entity or an individual? Confusion in these concepts arises constantly. In this material you will find a detailed answer to this question, and also find out what is the difference between an individual entrepreneur and an LLC.

Example

A good example is the delivery of cargo to warehouses.

If the warehouse is geographically located too far away and the cargo does not arrive often, there is no need to maintain a whole staff of general workers 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, no less popular example of outstaffing is the use of workers for periodic and seasonal projects. For example, to successfully launch a new product on the market, sales representatives are required whose responsibilities would be to promote the new product to the end consumer. In this case, there is no advisability in hiring new employees for the duration of product promotion, and at the end, firing the entire staff.

The use of outstaffing in this case is simply necessary. During the implementation of a project to promote new products, an outstaffer can provide the required number of sales representatives with relevant work experience and information savvy.

Advantages and disadvantages of using outstaffing

Outstaffing has a wide range of both advantages and disadvantages, which are always worth remembering.

Pros:

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

Flaws:

• The likelihood of hired workers being disloyal to the enterprise.
• Lack of maximum guarantee of the start and completion of the project being implemented within a strictly specified time frame.
• Inability to clearly monitor the outstaffer’s performance and improve his skills.

In addition to all of the above, there are also advantages and disadvantages for the employees themselves, acting as mercenaries. According to recent research by the Higher School of Economics, the advantages of outstaffing are the provision of social guarantees, official employment, and the ability to change jobs without independently searching 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 delegate specialized employees for a certain time, who will have to complete the assigned amount of work.

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

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

• violation in tax matters;
• challenging a number of provisions of the concluded agreement;
• failure to comply with the terms of labor legislation.

The management of the outstaffing customer company, acting as a taxpayer, must understand the novelty of such a business solution in Russia and, as a consequence, the lack of strictly regulating legislation. In particular, the use of outstaffing may be considered by tax authorities as tax evasion.

In turn, for workers in the field of taxation, the low level of safety in 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 of judicial practice, the outcome of which in the overwhelming majority of cases is determined by the emphasis placed in the outstaffing agreement.

Video on the topic

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What is outstaffing in simple words? How is outstaffing different from outsourcing? Which agencies provide staffing services and what is their cost?

Hello, dear readers! With you is one of the authors of the business magazine HiterBober.ru Dmitry Shaposhnikov.

One of the ways to solve problems associated with hiring personnel and optimizing the size of an enterprise is outstaffing - a service for providing personnel.

For 7 years I headed a large division in Stavropol of one of the leading telecommunications companies in Russia. Our company actively used outstaffing, especially in recent years.

Outstaffing can help you properly distribute the workload among employees, free you from many problems, and save money and nerves.

By correctly implementing this tool in your business practice, you will revive your business, increase income, and partially avoid the problem of hiring staff. You will have free resources for development and more time for planning.

Do you also want to use this tool in your business, so that neither the labor nor the tax authorities consider the law to be broken?

Then close the extra tabs in your browser and read this article carefully!

1. What is outstaffing in simple words?

Let's start with a definition.

Outstaffing- a form of hiring temporary employees to perform different categories of work.

For example, you have just opened your store and you need:

• train your consultants in sales technologies,
• Hire someone to do general weekly cleaning;
• periodically, 2-3 times a month, unload and unload heavy goods.

And during the New Year's sale, you will need additional sales consultants, who will then need to be fired. In addition, your full-time employees periodically get sick and go on vacation. It would be desirable to have a person who could substitute if necessary.

If you enter into employment contracts with all these people, you will encounter the following difficulties:

1. Difficulty of selection. No one wants to go to work for several days before New Year's, once a week or several times a month. It is almost impossible to make money with such a schedule.
2. Difficulty of dismissal. Even if there are people willing, you must conclude an employment contract. Usually it is concluded for an indefinite (long) period, but you need it for 2 weeks. If the employee does not agree, problems may begin.
3. Paper work. A lot of documents are prepared for each employee and soon you will be faced with the need to hire another HR inspector, and this is an additional expense.

Outstaffing will save you, as the director of a store or any other enterprise.

In simple words,

Outstaffing- is the provision of personnel for rent by a third-party company. At the same time, these personnel are employed by the outstaffing company.

To implement such an idea, three parties are needed: the employee himself, the company that needs him, and the recruitment agency. The latter draws up an agreement with the candidate in accordance with the Labor Code, pays insurance premiums for him, but the workplace is located in an interested company.

You set the requirements and position profile for the agency that provides outstaffing services, and it takes care of loading the employees’ work schedule, paying fees, and its readiness to come to you at the first request.

Do not resort to outstaffing if you are hiring core staff. With consultants and cashiers in a store, with engineers and key workers in production, with doctors and nurses in a hospital, if you plan to employ them full-time for a long time, you can and should conclude indefinite employment contracts and provide them with all guarantees and social benefits.

2. How does outstaffing differ from outsourcing?

Until now, in many contracts and even in court definitions, outsourcing refers to the selection and provision of personnel at the disposal of the customer, but this is outstaffing.

These two concepts have nothing in common. In the table below you will clearly see these differences. We previously wrote about.

Comparison table between outstaffing and outsourcing:

Thus, outsourcing and outstaffing are different forms of contractual relations and forms of performing company tasks. Confusion in concepts can lead to incorrect interpretation of the terms of the contract by different parties, and, therefore, to conflict, severance of relations, fines and other unpleasant consequences.

3. New in legislation: is outstaffing prohibited since 2016?

I’ll say right away that no, no and no again! The ban on outstaffing is a myth invented to create excitement around the topic. What exactly has changed? The legislator introduced a new concept - Agency labor, which has been vetoed since 2016.

Agency labor- this is an uncontrolled rental of any personnel for any purpose and any work. In Russia he prohibited since 2016.

Outstaffing has not been prohibited since 2016, subject to compliance with legal restrictions.

The benefits of outstaffing, if used correctly, are obvious.

Companies can save on temporary, seasonal employees, on performing work in secondary (non-core) activities, in places that do not require serious training or special education.

And that's not it. Resourceful employers have come up with a simple but effective system using HR outstaffing:

1. Pay less for accident insurance. A company that is engaged in high-altitude, underwater, underground and other dangerous/harmful work, then for each employee such a contribution will be high. But if you hire a specialist whose employer is a recruitment agency, the insurance premium will not exceed a hundred rubles, because the main activity of an outstaffing agency is not high-altitude/underwater/underground and other dangerous and harmful work, but personnel selection. Only workers with injuries and occupational diseases received at work suffer from such a scheme - they cannot count on full insurance.
2. Save on insurance premiums for employees. Contribute smaller amounts to the Pension Fund for employees who are entitled to early retirement due to their working conditions. A miner whose employer is a recruitment agency will not receive an early pension, although he actually works in conditions that imply such a pension.
3. Save on vacation. Do not pay for additional leave, which is due to some categories of workers, because they are employed in an outstaffing company, and not in hazardous production.
4. Replace employees quickly. For example, “undesirable” and “obstinate” workers who went on strike can be quickly replaced with others. To avoid downtime, the company hires suitable specialists and continues to work.

Such manipulations and games with the law could not go unnoticed by the legislator for long, so outstaffing has undergone changes and restrictions since 2016.

For some categories of workers, in order to protect their rights, only a direct employment contract is provided with all the benefits required by law: additional payments for harmful or dangerous working conditions, early retirement, additional paid leave, and accident insurance.

4. Outstaffing and agency work: the main differences

Until 2016, when no form of leasing personnel was regulated by law, these two concepts could be considered synonymous.

Let me remind you that agency labor involves the replacement of any workers, for any period, for any purpose, without restrictions. This form of outstaffing is now prohibited in our country. Moreover, since 2016, a third party has appeared - the employee himself. In case of agency work, his opinions could not be taken into account - the employer’s order was sufficient. And during outstaffing 2016, he acts as a full partner, consciously entering into an agreement and giving voluntary consent to work in the company.

In order not to “slide” into illegal hired labor, when concluding an outstaffing agreement between a recruitment agency and a company, very specific requirements must be met.

The company is prohibited from using hired personnel:

• during strikes of key workers, during downtime associated with non-payment of wages to regular staff;
• at hazardous facilities, in workplaces with hazardous working conditions;
• when the qualifications and education of employees are necessary to obtain licenses, accreditations and permits (doctors in medical institutions, teachers in educational institutions, chief engineers and mechanics in production - all these employees must be on staff and cannot be rented out.

5. Sample outstaffing agreement for download

In addition to legal restrictions, when concluding a contract for leasing personnel through outstaffing, you need to provide for many details, which, if neglected, will cause additional costs. For example:

• Are recruitment and selection services included in the price or are they paid separately?
• Can the contractor (recruitment agency) change employees without the consent of the customer company?
• What should the parties do if the submitted candidate does not meet the requirements?
• many other minor details that are paid attention to only if problems arise with them.

To immediately foresee all possible situations and insure yourself against potential problems, you need a qualified lawyer. What if his services are too expensive? The Internet will come to the rescue! For example, a service such as QuickDoc with a sample outstaffing agreement can help you in drawing up an agreement. By changing positions, you can get different terms of the agreement.

6. Which agencies provide personnel services and commissions from outstaffing companies?

Personnel provision services since 2016 can be provided by:

• accredited recruitment agencies;
• legal entities or entrepreneurs - under contracts with affiliated companies and with the consent of the employee.

In St. Petersburg and Moscow, the following agencies provide outstaffing:

1. Zest-Personal(zest-personal.ru)
2. Interprime(interprime.rf)
3. Contact Service(okcall.ru) - call center
4. Credence(credence.ru)
5. Personnel Advisor(outstaffing-sovetnik.ru)

The following requirements are imposed on outstaffing companies: they must apply only the basic taxation system, operate without arrears in payments to the budget, have at least a million rubles of authorized capital, and the head of such an agency must have a higher education and work experience in the specialty.

The customer pays the agency a single invoice, which includes:

• employee salary;
• personal income tax;
• contributions to the Pension Fund, Compulsory Medical Insurance Fund, Social Insurance Fund;
• vacation pay, payment upon dismissal;
• agency commission. It provides compensation for personnel records management, accounting and tax support for personnel, and submission of reports for each employee. The increased commission may include recruitment services.
• other services: provision of workwear, uniforms, training, medical examinations, etc.

The average agency fee is on average 1-5 thousand rubles for each employee. Most performers offer a discount based on the number of employees.

The cost of outstaffing is low, otherwise there would be no point in it.

To better understand what outstaffing is and in what cases companies resort to it, watch the video from Stolitsa FM radio:

7. Conclusion

Now you have learned more about this method of working with personnel as outstaffing, as well as about new legislative requirements in this area. We hope you found this article helpful. Today, this service can be used by any company that wants to legally reduce labor costs.

All that is required is to follow the basic provisions:

1. The temporary nature of the work of hired personnel;
2. The employee’s consent to own rent;
3. Workplaces without harmful or dangerous factors;
4. Working with an accredited outstaffing agency.

Compliance with these points will allow you to work calmly, saving money and without violating current legislation. I wish you success!

Reading time: 9 minutes. Views 67 Published 06/10/2018

Every person looking for a job comes across outsourcing agencies. Such services help large enterprises acting as customers find the necessary personnel. The employees themselves are not obliged to make financial payments to outsourcing services for the provided workplace. In business terminology you can also hear about such a concept as outstaffing. These terms have similar meanings, but are not synonyms. Below we propose to consider how outsourcing differs from outstaffing, and also talk about the advantages and disadvantages of these types of activities.

Outsourcing and outstaffing are two foreign terms that have become widely used by 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 activities allows one 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 performing several production tasks is significantly lower than the productivity of highly specialized employees. This means that the distribution of work 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 us 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 to produce 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 vary depending on their field of activity. In most cases, such companies 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 are in the highest demand. Not every employer can afford to employ a highly qualified specialist. The development of outsourcing has a positive impact on the country's economy, as every entrepreneur has the opportunity to optimize their 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 thanks to the development of management and is one of the most effective ways to reduce production costs. Outstaffing is a kind of rental of workers 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 enters into an agreement not with the agency itself, but with its employees. Based on this agreement, agency employees become temporarily subordinate to the customer. The contract concluded between the parties indicates the amount of work that needs to be performed by the contractor. In simple words, such employees are on the staff of one company, performing their work duties in a third-party organization.

Outstaffing is temporary. The need to attract freelance workers 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 optimize his own business. When concluding an agreement with outstaffing companies, the customer relieves himself of the obligation to prepare 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 the employee mandatory payments. It was this feature of the area under consideration that became the reason for the correction of the fifty-third article of the Labor Code. According to the new law, the duration of the personnel “lease” agreement must 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 industry. 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 and surrounding areas.
5. Solving legal and personnel issues.
6. Development of marketing policies, carrying out advertising events, promoting products on the market.
7. Vehicle maintenance.

In addition to the positions listed above, there are also 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 procedure for providing personnel.

Differences between outstaffing and outsourcing

Outsourcing and outstaffing - the differences between these meanings are closely related to the legal component. According to current legislation, the minimum duration 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 included in the contractor’s staff. The basis for conducting this type of work activity is an agreement concluded by the parties. At the end 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. This step allows you to reduce production costs by eliminating one or more positions from the staffing table. It is important to note that there are additional specific differences. Outstaff workers receive not only job 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 an outstaffer is to solve the problem.

It should be separately mentioned that due to the lack of strict regulations regulating the activities of outsourcing services, the customer may encounter scammers in the form of performers.

Many newcomers to business think that outstaffing and outsourcing are synonymous. This opinion is supported by the high similarity of the areas under consideration. When considering the similarities and differences between these areas, special attention should be paid to financial issues. Thanks to the involvement of freelance workers, the entrepreneur has the opportunity to optimize the procedure for paying taxes and reduce production costs. This step has a positive impact on production speed and leads to an increase in the quality of manufactured goods. Based on the above, 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 values ​​under consideration 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 deserved popularity over the past few years. The demand for such services is explained by the reduction in time and financial costs. At many large enterprises there is often a need to solve specific production issues. As a rule, solving such problems is assigned to ordinary company employees. Lack of experience and necessary knowledge can cause a decrease in the efficiency of the production process. The only way out of this situation is to temporarily hire a specialist with the required qualifications.

Concluding 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 a “rented” employee gets sick, the performing 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 staff.

In addition, the contractors 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 their issue.

Outstaffing and outsourcing have a number of the same disadvantages . As a rule, all the disadvantages of the areas under consideration are related to the specifics of the service package. An incorrectly set production goal can have a negative impact on the results of the labor activity of freelance workers. Many employers consider this situation as a negligent attitude towards their own obligations on the part of the contractor. In order to prevent the occurrence of such a situation, the employer must approach the issue of drawing up technical specifications with increased attention.

It should also be separately mentioned that the bankruptcy of the executor may cause failure to fulfill contractual obligations. Separately, we should highlight the risk associated with the disclosure of confidential information by freelance workers. In order to prevent the development of this situation, a clause on non-disclosure of received information should be included in the contract.

Procedure for concluding an agreement

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

The contract with the outstaffing company must indicate the required number of freelancers. A separate section records all aspects related to payment for their work activities. In addition, the agreement 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 enters into a full-fledged contract. When interacting with outstaffing companies, an agreement is concluded on the hiring of temporary workers. The procedure for interaction between customers and performers is described in the fifty-sixth article of the Labor Code.

Conclusion

The areas under consideration have common features due to their focus on reducing production costs and increasing the efficiency of the production process. Each of these areas has its own specific subtleties and nuances. The customer of such services must 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 a contract.

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