Do you know what is the main difficulty of today’s companies? Who would have thought before, but it is in the selection of personnel that the main inconsistency lies, since there are a lot of hiring options now! The most common ways are outsourcing and outstaffing. When you choose a model, you can easily get confused in terms, but this article has been created to help you understand the two ways and determine which is the most ideal for you and your company.
What is outsourcing?
So, the essence of outsourcing is that any processes are transferred to the contractor. That is, performers are involved to perform some tasks that are most often not the main ones. Why is the company doing this? Why not just form a team? But in fact, not everything is so simple. With outsourcing, you save a lot of resources. It is not always profitable for a company to keep employees who do not have an important role for themselves or who do not perform their main work. Then the company turns to other companies that provide people providing these services. For example, cleaning an office and contacting a cleaning service is the most accessible and striking example. the first times of application were dated in fact in 1930. Alfred Sloan developed this system when his company was in crisis and outsourcing became a lifesaver and a solution.
Advantages
- The first important point that has already been mentioned in passing is saving money. For any company, especially one that starts any startups, the way to save money is very important. And just outsourcing is the same case.
- You are guaranteed to have experienced specialists as the company vouches for the personnel it provides. The maximum that may be required of you is only to choose the company that will have a good status
- Perhaps not such an obvious point, but it is a fact. performance will be drastically improved. This is due to the fact that the company focuses on the main and important processes.
- Also, another psychological factor is that disputes and disagreements with such members of the company are excluded. If you are an employer, you simply do not need to spend time on this, since you do not have any personal employment agreements.
What is outstaffing?
In other words, it is also called personnel leasing. It works like this: a company needs to expand its staff and they resort to outstaffing. This specialist, as it were, becomes an actual member of the team, however, in fact, he is still part of the outstaffing agency, which pays him a salary.
Advantages
- You do not need to conclude contracts with each specialist, and also do not waste time on hiring a person in your company. You have already been released from it. Imagine how convenient! The person works for you, has all the necessary skills, and you have no difficulties with his candidacy.
- By the way, the second immediately follows from the first point. The burden on accounting has been reduced tenfold. After all, it is not you who are busy with the actual salary, vacations, sick leave and other paperwork, but the outstaffing company, which, by the way, is responsible for this person.
- Often, if you choose the right it outstaffing company, then experienced and trained programmers will work there, who already have experience with many projects and will definitely bring only benefits.
Differences
As you can see, in fact, these models are very similar to some extent, in some moments even identical, but there are differences and they are serious, which may not be obvious at first glance. The first and important difference is that the form of government itself is different from each other. IT outstaffing allows you to freely and directly manage the provided specialists that the company has provided to you. This significantly improves communication, however, the responsibility for implementation lies with the customer himself, since the setting of goals is made by the ordering party. As you can imagine, the situation with outsourcing is completely different. Control and management of these specialists at the contractor company. The manager of this company monitors the volume and quality of work. And all consultations and communications go through this manager. That is, you have no direct connection with the employee.
If your company is interested in completely changing the ways of hiring, then it suggests that you follow the link.