Businesses today can find themselves needing that extra bit of support from time to time. You might have suddenly got a big contract or project and find your team is spread too thin or you might be down a few people because some staff are sick with the flu.
That’s just two examples there are many more reasons why businesses can find themselves needing some extra help and support. Unlike needing a new hire this help is more temporary and not designed to be permanent but where can employers today turn to for extra help?
Well, you have two options you can outsource or outstaff but which is best? The two are often confused but they are not the same thing and both have their pros and cons. So, to find out which is best let’s first look at the differences between the two.
The Difference Between Outstaffing and Outsourcing
Of the two outsourcing is probably the most commonly known, although not always for positive reasons. Outsourcing is when a business lets another business take over part of its services, for example, a large tech developer might outsource its telecommunications and support services to a remote call centre.
Outsourcing can be done in many different ways as well and it doesn’t always have to mean you’re outsourcing to a large business. For example, a business could outsource its graphic design needs to a freelance graphic designer.
Outstaffing is similar in some respects but is also very different, with outstaffing you’re effectively hiring someone to work for you through an agency. While they will be working for you they will be being paid by the agency you’ve hired them from.
They could be working remotely or at your place of business, it all really depends on what you’re hiring them for. Unlike with traditional outsourcing with outstaffing, you get a simpler, easier process because the payment is dealt with by the agency so effectively all you’ve got to do is tell the person you’ve hired what you want them to do.
Pros and Cons of Outstaffing
Outstaffing might not be as well-known as traditional outsourcing in some circles but it is quickly making a name for itself especially when it comes to industries like Driving and Warehouse operatives. Outstaffing also comes with several benefits you won’t find with traditional outsourcing let’s take a look at the pros in more detail below: –
- Full control over the people you hire and what they’re doing;
- You have the peace of mind in knowing that anyone from an outstaffing agency will be qualified and experienced;
- Makes managing your hires much easier;
- Payment and taxes are all dealt with by the outstaffing agency;
- Usually much more cost effective than traditional outsourcing;
- It’s usually much faster than traditional outsourcing.
While there are plenty of benefits to outstaffing nothing is without its cons, is it? But thankfully with the right management, the cons of outstaffing are quite easy to avoid. Let’s look at the cons of outstaffing below: –
- Outstaffing can feel a little impersonal, especially for smaller businesses.
- It can be difficult to find the right person for IT and development projects.
- High-levels of communication are essential especially if your outstaffing for remote work.
Pros and Cons of Outsourcing
Outsourcing is relatively well-known these days although it has built-up a somewhat negative reception in some industries. There are still positives to outsourcing though so let’s take a look at them below: –
- It eases your management responsibilities and gives you more time to focus on the rest of your business;
- You don’t have to provide any materials to the team/ group you’re outsourcing to;
- Improved speed and efficiency.
Outsourcing can lead to great success when you’re dealing with a professional team/ group however you need to be sure you’re outsourcing to a professional, high-quality service provider otherwise you might see some of the cons we’ve listed below: –
- Outsourcing does effectively mean giving up some of your businesses practices/ processes which can be difficult for business leaders to do;
- Quality and efficiency issues have been known to happen;
- Outsourcing can be very costly.
How To Decide Whether To Outsource or Outstaff
Outstaffing, in my opinion, gives you many great benefits you don’t find with more traditional outsourcing. However, both options are perfectly viable but how do you decide which one is best for your needs?
Outsourcing is usually the better option for larger jobs where your business needs more long-term support. For example, if your business as no IT team then rather than outstaffing to someone outsourcing might be the better option.
Outstaffing is usually the better option for when you need more short-term support and help or the skills of a more experienced professional. Outstaffing is also usually the better option if you want someone to work with you locally as the majority of outsourcing is done remotely while outstaffing can usually be found both locally or remotely. Take a look at our services.