The most valuable resource is personnel. Permanent staff is associated with specific difficulties. It is possible to form a team without spending extra money and time with the help of outstaffing and outsourcing personnel.
Outstaffing and Outsourcing: What is the Point?
Outstaffing is a cooperation between company A and company B. Company B comes to company A and says: “We need employees for some time.” Company A answers: “We have freelance specialists for you.” Now, our SECL Group experts will give more information about the body and team leasing and outstaffing in general.
Personnel outsourcing, as well as outstaffing, is a real opportunity to pick up experienced personnel without effort and unnecessary costs.
The word “outsourcing” means “external source.” Outsourcing personnel is the transfer by the organization of functions related to personnel paperwork to a contractor company engaged in selecting and hiring personnel on a temporary or permanent basis. Most often, such business relationships are of a long-term nature.
When You Can’t Do Without Outsourcing
Companies that provide personnel outsourcing services are often approached when it is necessary to select a team for a short-term or one-time project, to perform seasonal work, or when there is no opportunity or desire to increase the staff significantly.
Outsourcing temporary personnel is optimal, even if you need to replace an employee on an extended vacation. However, first of all, personnel outsourcing is considered an opportunity to transfer to the outsourcer functions for the selection and hiring of personnel on a long-term basis. Companies interested in this service include factories, supermarkets, shopping and entertainment centers, catering companies, hotels, warehouses, etc.
Personnel Potential of Outsourcing
Today, almost any function can be outsourced. At the same time, companies that provide personnel outsourcing services are most often contacted in cases where:
- Lawyers and accountants;
- IT specialists;
- Drivers, couriers, loaders, storekeepers;
- Specialists in the field of cleaning,
- Secretaries and office managers;
- Personnel workers;
Personnel outsourcing is very convenient and profitable – otherwise, this service would have gained less popularity in the big countries. In the USA, doing business has been turned into fine art.
Outsourcing secondary functions of the company allow for focusing on implementing essential tasks without wasting time and effort on extraneous matters.
By turning to an outsourcer, the company saves itself from the need to search for, recruit and train employees and constantly monitor the quality of their work – the outsourcing company takes over all these responsibilities, and the customer only designates the task.
In addition, outsourcing personnel is also a significant saving of money. Since “rented” employees are not part of the staff of the customer company, they do not need to pay vacation and bonuses, provide a social package and provide all the privileges that full-time employees have. The company bears no responsibility for these temporary workers. By saving time and money, you will stimulate the development of your business.
Many believe that outstaffing and outsourcing are the same. There is a significant difference between these concepts. Outstaffing is the removal of employees from the staff. At the same time, employees are not officially listed in the company but continue to work in their places and, under the control of full-time managers, receive a salary determined by the management of this organization. And the provider company that hired these workers, for a certain fee, keeps all the documentation, accounting, and personnel and pays taxes.
Why Is Outstaffing Profitable?
The perspective of outstaffing is justified by its profitability – it is a legal way to reduce taxes and reduce the scope of administrative and accounting functions. The outstaffing company resolves all employment issues and disputes.
Outstaffing is very convenient for organizations using a simplified taxation system when the number of full-time employees is limited.
By law, such firms cannot employ more than 100 people, and the number of outstaffers is not limited. By outsourcing employees, such companies can enjoy all the advantages of the simplified taxation system, even when the actual number of employees is greater than the prescribed number.
The price of outstaffing, like the price of outsourcing, is always calculated individually and can vary significantly depending on the number and qualifications of employees.
Why Do We Like Outstaffing More Than Outsourcing?
Dear market colleagues! We have bad news for you (yes, for many, it will still be news). If you think you are more competent than your customer, you are a couple of years late. Product teams in the client and back offices are developing and increasing expertise rapidly. They are entirely able to create and achieve results independently.
The client is no longer interested in your unhurried “turnkey” development and inflated estimates with inherent risks. Digital products are changing rapidly, and the main thing required now is to quickly assemble the right team of competent specialists for the tasks and achieve the set tasks. There is no time for waste.
That is why we are actively developing outstaff as a separate business direction.
Here Are the Advantages of the Outstaffing Model for the Company:
- There is less chance of getting into trouble with an incorrect estimate of the project at the fixed price;
- We all know that estimating projects based on a fix is like walking in the dark;
- The main task is to match the client’s expectations with the performance of the specialist he hires.
Forecasted loading and revenue
Outstaff projects are often large and long, and tasks are serious. It means a clear production load plan and reasonably accurate revenue forecast. And not only in the context of the project but also for each employee.
Saving resources. Let’s get rid of chaos and entropy
The developer does not need to jump from project to project several times a day because somewhere, “everything has broken urgently and needs to be fixed” – he works calmly and immerses in one stream, not spending a single drop of resources on switching. The main task of management from our side is general supervision of the project and maintaining a good atmosphere in the team.
Where Can I Order Outstaffing and Personnel Outsourcing Services?
Finding a reliable provider company is most challenging when outstaffing and outsourcing personnel. SECL Group has been successfully working in this field for many years and is ready to help with the provision of employees and the removal of employees abroad. The agency’s branches are located in many regions of the country, so the company’s services can be used not only in any major city.
Long-term experience with large clients in the IT sphere allows “your staff” to cope with difficulties and find solutions even in the most challenging situations.