Outsourcing vs outstaffing

Winpro Solutions / Outsourcing vs outstaffing

Outsourcing – process of assigning a task or service normally or formerly performed within the company to an outside source. The third party controls the process, fulfills tasks and sends them completed to a customer.

- helps to control the budget and avoid extra cost by saving on salaries
- eliminates the need for hiring and/or training IT staff – these responsibilities are delegated to a contractor
- frees you resources for other business activities
- a contractor usually has equipment and skills you don’t have
- allows remote and efficient working in any part of the world

Outstaffing – process of taking on temporary staff through an agency.

- you control the task fulfillment and take the whole responsibility for the work your outstaffed
- hired staff reports directly to you
- you hire talented people who will work only for your company
- helps to control your workforce
- a staffing agency hires and/or trains staff
- allows remote and efficient working in any part of the world

Main differences

- by outsourcing you hand the whole project to a contractor and you do not have control over it until it’s done; when outstaffing, you’re in charge
- people you outstaff will work only for your company; they continue working at their regular workplace, but you assign them

What to choose?

Outstaffing and outsourcing are both suitable for fulfilling urgent business tasks. The choice, however, depends on the situation. Outsourcing will help to reach your business goals by completing portions of work using the third party help. Any small and big projects can be assigned to another company, which has all the resources for working on them. But even if you are already acquainted with these employees and satisfied with their work, in most of the cases, a contractor cannot guarantee that these particular specialists will provide you with their services for all the projects you have. But if you seek growth by increasing general capacity of your company’s workload, it's more reasonable and convenient for you to outstaff. You choose outstaffing if you can already guide your employees and ready to take more responsibilities. In this case, you also use the people’s talents for the benefit of your own company. With dedicated employees, you can be more flexible, changing tasks for certain people, assigning them for the different purposes. You are in full control here.

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