Outstaffing: what is it and why companies need it

Outstaffing services are used by companies for which it is not advisable to involve their own specialists in any work. Hiring additional employees is not possible. In such cases, third-party specialists are temporarily included in the staff to perform the work. The intermediary company that provides such hired specialists pays for their work. An employer, ordering an outstaffing service, can get rid of the need to dismiss employees who are officially registered and have a social package. At the same intermediary, outstaffers are issued in the state. All legal and accounting documentation regarding employees is also maintained by an intermediary. During the main working hours, outstaffers work for the customer, reporting directly to him.

The growth of the outstaffing services market in the USA and Western Europe is about 35% per year.

 - The employer gets the opportunity to display the increase in expenses in the accounting documentation. This is a legal way to reduce income taxes.

 - There is a decrease in the financial and administrative burden on the core staff. The management of outstaffers remains with the employer.

 - Reduced staffing costs. This includes consumables, stationery, depreciation and gasoline for vehicles, and other expenses. All this is paid to outstaffers by the contracting organization.

 - Situations where your own staff can not cope with the load are minimized. Outstaffers can be hired only for the period during which they must complete the assigned tasks.

 - The employer receives only personnel with the required level of skills, without spending time and money searching for him. This makes it possible to minimize the cost of the personnel department (especially relevant for businesses with branches).

 - Outstaffing solves the issue of attracting top specialists (especially in IT), who cannot be found quickly on the job market. Outstaff saves the employer from the need to improve the skills of employees and pay for this process.

 - The outstaffing contract specifies the obligations of the parties and the deadlines for the performance of work. In case of violations, the contractor will be forced to pay the losses of the employer. It is in his interests to keep only responsible and experienced professionals on the staff.

 - Depending on the services, you can choose the appropriate form of payment (hourly payment, fixed price).

 - Growth of the investment attractiveness of the customer company, which is facilitated by the growth of actual income.

An important point: most of the companies ordering outstaff are satisfied with the result.

When attracting outstaffers is not the best solution:

 - For work of the first and second class of danger, as well as unhealthy working conditions;

 - In companies that are going through bankruptcy proceedings;

 - There is a need for the work to be performed by a specific person, and not by a conditional specialist.

If you are looking for an IT Outstaffing Company, then we advise you to pay attention to this https://stfalcon.com/en/services/outstaffing-company

There is an opinion that outstaffers are not distinguished by proper motivation and loyalty to the company. In practice, this issue is solved by the development of corporate culture. The completion of one of the projects does not deprive the employee of work, the specialist will be redirected to another project.

Outstaff encourages employees to develop, pumping diverse skills. Multidisciplinary specialists are in demand and are not waiting for a suitable vacancy.

Outsourcing and outstaffing are two different directions. And the difference between them is quite large.

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