Outstaffing is a type of remote recruiting model in which a vendor provides a specialist or a group of professionals for a client’s project during the contract term. The client can administer and manage a “rented” team or specialist. The vendor selects and hires employees, deals with the legal aspects of cooperation, and pays salaries.
This remote recruitment model consists of the following basic procedures:
Outstaffing has some business benefits:
The outstaffing model has not yet become widely used in business because of existing disadvantages:
The Tax Code of Ukraine still has no term “outstaffing.” Still, there is a definition of the Service for the provision of personnel, and there is also Article 39 on Employment of the population of Ukraine. These two concepts legally secure the existence of outstaffing in Ukraine.
Sometimes outstaffing can be confused with another popular remote hiring model: outsourcing. To distinguish between these two concepts, let’s define the meaning of the term “outsourcing.”
Outsourcing is the delegation of business tasks to third parties who are specialists in a particular field.
In outstaffing, the customer hires a specialist or a team to integrate into his company with the right to manage, and in outsourcing, an external team independently solves issues. In this case, the customer can comment, make edits but does not manage the outsourcing team.