One hears more and more about outsourcing and outstaffing and outsourcing companies: but what is it all about? What is the difference between outstaffing vs outsourcing? In this article we will explore what it is, what the difference is between outstaffing and outsourcing.
An outsourcing contract is an agreement whereby a party (outsourcee or committee) transfers to another party (outsourcer) certain functions necessary for the realization of the business purpose.
We point out that this definition must be present in the contractual models that precede the conclusion of the relationship.
The outsourcing contract can cover many stages of the production process: from the development of a product to its sale, logistics, marketing, personnel management and administration. By transferring the management of a service, ownership is also transferred to the outsourcer.
Which typical shops are most commonly used for outsourcing purposes?
There are three contract types, let’s look at them together:
- contract: a party undertakes, with the organization of the necessary means and with management at its own risk, the performance of a work or service for a monetary consideration;
- work contract: a person performs a service, with mainly his own work and without any subordination to the principal;
- subcontracting: contract a commissioning enterprise entrusts its production of goods or services to another enterprise, reserving only the performance of commercial functions.
Outstaffing service is one of the best possible opportunities for companies looking for flexibility and solutions tailored to their needs! In a labour market characterized by new challenges and employment paradigms, staff leasing is a valuable choice for all companies!
It takes the form of a personnel management tool that can be activated in any employment sector (with the exception of public administration), which is realized through the synergy of three parties: the worker, the employment agency (referred to here as the ‘administering company’) and the company or SME (referred to here as the ‘user company’).
How does staff leasing work in practice?
Let us start by premising that we are faced with the conclusion of two separate staff leasing contracts:
The first, between worker and employment agency, is a staff leasing contract of indefinite duration drawn up in writing under penalty of nullity.
The second, between the employment agency and the user company, can be either fixed-term or open-ended.
By hiring the worker for an indefinite term, the employment agency will provide him/her with the employment opportunities available at the client companies. It should be noted that the worker will not have to worry about extensions or renewals, as he or she is hired on an open-ended contract.
Following careful professional profiling by the Employment Agency, the worker will be directed to the positions that best suit his or her characteristics.
Moreover, there are no differences in terms of protection between the worker in a staff leasing arrangement and the worker hired on a permanent basis by the company in which they are employed except, precisely, for the compensation paid by the employment agency to the worker who is temporarily not employed by a company. In-company treatment, including production bonuses and other benefits, are also affected.
Why do you need outstaffing RVA
Worker outstaffing itself is an HR management tool that helps regulate the number of employees in a company without expanding the official staff. This is especially relevant for large companies that face limitations on the number of full-time employees. And even if they are short of ‘hands’, they simply cannot increase the number of full-time units because there are no guidelines for this.
To Sum Up
Outstaffing and outsourcing should not be confused. The second is the outsourcing of certain functions or business processes and tasks to a third-party contractor (for example, outsourcing IT or accounting). In outstaffing, all functions remain in-house, but employees are formally relinquished.