Companies often reach a point in their development where they have to hire remote experts to meet their needs. These could be third-party vendors or remote workers. Either outsourcing or outstaffing will be able to meet the company's expectations, depending on its goals and type of business.

Outsourcing strategy became an integral part of the international business economy in the 1990s and has since gained worldwide popularity. Outstaffing or subcontracting means hiring a third party supplier or company to provide certain services. This is an older term than outsourcing and usually refers to situations where a task cannot be processed in-house. Outstaffing companies or employees work closely with suppliers until the end of the project. In contrast, the outsourcer is responsible for the results of the project and does not have to collaborate with the employer on a daily basis. Thus, outsourcing is great for the entire project, and outstaffing means hiring people to work remotely.

IT Outsourcing Trends

A software outsourcing company will likely be working on one project at a time with clients whose business is largely independent of IT. There are many companies in the world that do not focus their primary efforts on technology. It is easier for them to find a reliable outsourcer who will provide the best results. Therefore, outsourcing is the most suitable option for companies that require web development services and/or other types of business development that require technical initiatives. Typically, outsourcing providers agree to deliver the entire project. This means that costs already include employee salaries, and suppliers are also responsible for outsourcing HR management.

Outstaffing

The outstaffing service provider must select qualified personnel suitable for the specific task assigned by the company. However, the personnel offered by the supplier are not responsible for the final result. Such people or companies are “rented” and should be treated as remote employees. They usually charge the employer for their services, however they are subject to outstaffing. Outstaffed suppliers provide their employees with formal employment, insurance and taxation. However, they are not responsible for the quality of services provided or for the management of personnel. In certain cases, staff may be hired by the employer and even agree to relocate.

There are two outstaffing models. The first is called a cost model, where the customer pays fixed amounts of money per person and the company manages that money. He pays a person at his own discretion, including for bonuses, which can be called hidden personnel management. The second is called "cost plus" - the client knows how much he or she pays the person, and also covers all additional expenses, including holidays, taxes, bonuses, office, equipment, and the company's margin is also included here. The latter is a more open model as the client is fully involved in the process. Consequently, there are fewer risks for the client and at the same time more opportunities.

Outstaffing is often considered part of outsourcing, but it is not. Outstaffing basically involves signing a long-term contract to receive professional support in a specific area over a long period of time. This allows you to increase the efficiency of certain activities and at the same time reduce company costs. In conclusion, the main difference between outstaffing and outsourcing is that the latter involves delegating certain functions with a focus on results. Outstaffing never implies a complete transfer of responsibilities, since it attracts workers to perform specific tasks. Both outsourcing and outstaffing are widespread in the IT sector. Most reputed IT corporations often resort to these two strategies. Which one is better, outsourcing or outstaffing?

Pros of outsourcing IT services

Time efficient strategy

Promising companies are interested in spending less time on web development, which becomes possible through outsourcing. External experts will fully focus on your business, so it will bring good results. Products will get to market faster, increasing your competitiveness. Moreover, you will have more flexibility thanks to outsourcing,
which will allow you to focus on your core activities.

Wide selection of experts

There are many professional teams that provide excellent IT outsourcing services, especially in Ukraine. Moreover, HR responsibilities will also be delegated to third parties. This way, you will have more freedom to solve complex IT problems. So don't be afraid to entrust your IT project to professionals so you can focus on your most important business decisions.

Innovative solutions

A software outsourcing company will provide innovative technical solutions that are critical to your business in the long run. European companies typically outsource the following functions to reliable specialists: IT services, advertising and PR, accounting services, optimization, translation, logistics services, legal support, recruitment services, and security services, and also provide their software outsourcing services.

Outsourcing pricing models

Outsourcing provides remarkable cost-effective solutions for almost all types of businesses. In fact, the outsourcer bears full responsibility for the quality and results of the outsourcing project. This way, the client does not have to spend extra money to cover insurance, overtime and various benefits for foreign employees. The purchase of materials and equipment necessary to complete the project is also the responsibility of the outsourcer. Speaking of the IT industry, Ukrainian outsourcing specialists are incredible professionals who provide quality services at a reasonable price.

The outsourcing company is responsible for the result, for the task, for technical knowledge, as well as for technical expertise. This means that software products or parts of such products are delivered on time, a task is completed on time, or the stability of server support. There are open and closed interaction models. In an open model, clients can act as part of a distributed team, and they and their employees can participate in the planning process, daily meetings, and observe the work of the entire team. And it is very important for the client to have the same employees with whom he has already worked. And in a closed model, only the PM and business analyst interact with the customer, but the entire team is closed, so no one knows who exactly works there. In this model, the client does not have to worry much about this, since the main thing is the result. It depends on the customer and on the situation on the project itself, but in any case, project staff turnover is very bad, regardless of the outsourcing model. This greatly affects the project and makes it almost impossible to implement it without flaws.

Disadvantages of Outsourcing

Communication problems

The outsourced team usually does not integrate well into the company, so the communication process may take some time. The company representative will need to explain the expectations and features of the business at the beginning, and evaluate the results of the project at the end.

Project management problems

It can be difficult to monitor deliverables and communicate project pressure points. Maintenance and control of the project is carried out by a third-party agency, so the company owner does not have to interfere much with the process.

Management problems

Poor administration is not common among established outsourcing companies, however, it can happen if you are working with less experienced professionals. However, insufficient management skills can be detected in the early stages. If you notice that tasks are not clearly defined, planning is not done properly, and resources are not allocated correctly, it is time to change your outsourcing agency.

Pros of outstaffing

Hiring proven experts

Outstaffing allows you to hire a qualified specialist in the required field. You will not need to perform any background checks as the service provider will take care of these procedures.

Cheaper than full-time employees

You can hire qualified professionals without having to pay taxes, insurance, benefits, and more. Outstaffing helps business owners reduce their workforce without losing quality.

Flexibility in hiring and firing

Thanks to outstaffing, you can at any time increase or decrease the number of experts you hire to work on your project. You can also easily manage their activities related to current projects.

Cons of Outstaffing

Communication problems

Outstaffing employees who work remotely for your company may have different cultural backgrounds. This may lead to some misunderstanding between the employer and foreign specialists.

Service problems

The contractor may fail to perform the duties, which may happen if he or she is not sufficiently qualified or has not received clear instructions. However, most of the specialists provided by outstaffing agencies have excellent work experience. This situation is unlikely to occur if the agreement with the outsourcer was drafted properly and the project was carried out professionally.

Outstaffing management model

In general, it is much easier to deal with an outsourcer than with a lazy employee. Try breaking the project down into short chunks and defining milestones at the end of each phase. There should also be precise criteria that will determine whether the requirements have been met. Include this information in the contract to protect your business: if the staff does not pass the checkpoint, the employer will have the right to terminate the agreement. Please note that any implementation errors that may arise during the completion of the project must be resolved internally without recourse to other qualified personnel.

Both outsourcing and outstaffing will provide excellent results for businesses that do not have in-house specialists who can properly meet their needs. Both of these strategies are also suitable for companies that do not have the technical knowledge required to implement their development initiatives. However, there will be a difference for certain businesses. If your company does not focus on technology and does not have the staff to oversee or hire relevant candidates for technology initiatives - choose outsourcing. A software outsourcing company will also come in handy if you have a separate software project that needs to be completed. If you have concerns about confidentiality, you can always use an NDA to avoid data leakage.

An outstaffing provider will be the best solution to achieve your business goals if you want to hire employees to work on each project. This option is suitable for companies with strong management and/or leadership partners who can oversee projects. Outstaffing will make sense if you or your employees can manage a foreign expert. This strategy will also be useful if you suddenly need a certain workforce that you do not have.

If your company needs to hire a remote professional, you have two great options to choose from. Both outsourcing and outstaffing will help you achieve your company's goals and grow your business. Analyze the pros and cons of each opportunity and choose the one that suits you best.

1.5 / 5 ( 36 votes)

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

What is outsourcing?

Today, outsourcing in Ukraine is just beginning to develop, while Western companies have been using such employees for many years. At the same time, the word “Outsource” suddenly became fashionable, so it is used without thinking about the essence.

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

In most cases, the outsourcer is a professional company, which specializes in performing a specific job. But this is also the name for unofficial employees who constantly perform tasks or supervise projects, but are not active employees of the company - freelancers.

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

Outsourcing differs in that the company establishes a special contract that will regulate the work, and also pays a much larger amount than when collaborating directly with a freelancer. But in this case, the manager will have at least some guarantee of completing tasks.

Example:

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

Today, almost any enterprise that provides services is engaged in outsourcing. Most often, remote work is performed by:

• consulting and permanent lawyers;
• company accountant;
• IT professionals;
• call center employees;
• recruitment agents;
• general workers (mechanics, installers)
• cleaning specialists.

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

Outstaffing - concept and features

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

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

A better example might be popular seasonal worker hiring agencies today. A specialist goes to work for such a company, signs an agreement, but after that he is transferred to permanent work at another company. For example, a person is hired by such a company, after which the manager finds him a job picking berries at another company. Once the season comes to an end, the employee returns to the original company and either performs work in the same company or waits for a job to become available in a similar seasonal company.

Often company employees are simply removed from the staff, but they remain to perform their duties. In this case, the manager pays the agreed salary, and the company to which the specialists were transferred handles all the documentation. But in fact, the staff is employed by another company.

Advantages of outstaffing:

1. Removal from the staff of personnel who are not needed on a permanent basis, but work only periodically.
2. There is no need to select new employees or have a HR department - the company will do everything.
3. Possibility to reduce the number of specialists without dismissing the majority of employees.
4. Savings on employee maintenance - all taxes, sick leave, vacation pay and other expenses are borne by another company.

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

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

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. Wages are made strictly based on the 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, 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!

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The concept of “outsourcing” translated from English means the use of an external resource. Another foreign word “outstaffing” is translated into Russian as freelance.

Outsourcing and outstaffing

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

It is possible to differentiate the concepts by studying in detail the terminology of outsourcing and outstaffing. Outsourcing services refer to the relationship between the customer and the supplier. In other words, in this process, tasks are transferred and executed by the executing organization. In this case, employees work for a company providing services and receive a salary. The customer gives tasks that he cannot cope with, the contractor who resolves all organizational issues and is responsible for the quality of the work performed.

At enterprises of the Russian Federation, accounting functions, personnel hiring services, production services, IT services, marketing services and company security are outsourced.

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

Outstaffing and outsourcing, differences

Outstaffing and outsourcing - differences is there or not? So, having examined outsourcing and outstaffing in detail, we can conclude that these services provide businesses with the necessary support. Without outsourcing services, some companies will cease to exist, largely due to competitive pressure.

As we have found out, the concepts of outsourcing and outstaffing have different meanings and different types of activities. But I would like to note another very important difference - costs. What is the difference between outsourcing and outstaffing in this area? Each company tries to achieve high quality work, taking into account reduced financial investments. So, outstaffing is the most profitable type of service. The costs of payments and salaries are much lower than in outsourcing. In this case, there is another advantage - low time costs, since outstaffing companies work constantly.

To all the differences, I would like to add a feature that unites these services. A common feature of outsourcing and outstaffing is that their main task is to focus on minimizing risks, reducing financial, personnel and production costs, as well as optimizing taxes.

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