How Outsourcing Differs from Outstaffing
Outsourcing and outstaffing are two approaches for delegating specific company functions to external contractors. Both models involve engaging third-party experts to complete tasks, but there are some significant differences in how they work and the roles they play within a business. Client’s company can streamline its external responsibilities by delegating them to a service provider, who then assumes responsibility for completing the tasks.
Let’s take a closer look at how outsourcing differs from outstaffing and which approach might suit your business best.
Types of Outsourcing
There is a difference between personnel outsourcing and business process outsourcing:
- Personnel Outsourcing involves delegating specific departmental responsibilities to employees of the contractor company. For example, software development.
- Business Process Outsourcing (BPO) is characterized by the length and depth of the collaboration: in this case, the provider assumes responsibility not only for individual tasks but for an entire business segment or production phase.
How Does Outsourcing Work?
The outsourcing personnel process consists of the following stages:
1. Preliminary Stage
The client prepares the processes for transfer, creating a technical assignment, which includes:
- Deciding which processes to delegate to the contractor;
- Defining the desired outcome;
- Setting deadlines and the level of involvement;
- Selecting an outsourcer (it is important to pay attention to the provider’s experience and reputation).
2. Main Stage
Collaboration process:
- The client contacts the outsourcing company;
- The contractor signs a non-disclosure agreement (NDA);
- Both parties sign a contract;
- A project manager from the outsourcing company is assigned;
- The project manager oversees the work and communicates with the client.
3. Final Stage
The contractor provides a report on the tasks completed, and a decision is made about further collaboration.
Outstaffing and outsourcing: differences
How Does Outsourcing Work?
By studying the differences between outsourcing and outstaffing in the table above, we can summarize the comparison.
In outstaffing, services are provided on a permanent basis, with interaction between the client and staff through the outstaffing company.
In outsourcing, the client acts as a subcontractor, gaining access to industry specialists to address specific labor tasks.
For example, remote database administration helps companies optimize business processes, reducing costs by up to 50%. DB-Serv has been implementing projects for over 15 years, collaborating with well-known organizations and offering the following services:
- Support and monitoring of databases and business processes
- Database audits and recommendations for improving their performance, checking the quality of current processes
- Replacing the in-house DBA during the main employee’s vacation