Outstaffing: the meaning, scope and customer benefit

The main reason to address the outstaffing company is to save time and money. For instance, a clothing brand goes online and you need to arrange a call center department. The owner will have to buy equipment, rent an office, search for staff and monitor their work. It is much easier to buy already existing service from an outsource provider.

Such employees actually work for the client company, while on paper they’re employed by the contractor. It is a third-party company that undertakes to comply with the Labor Code requirements, provide official employment, and pay out salaries and bonuses (from the customer’s budget, of course).

Features of today’s outstaffing

Outstaffing is adding additional services these days, and the core value is based on the full-fledged HR partners who not only attract, but also “educate” newcomers.

Financial, retail, telecommunications, pharmaceutical, information technology and everyday goods (FMCG) companies are the ones who use outstaffing services most often. Theoretically, there are limitations to find full-time specialists. But in fact, these people often do part-time job:

• sellers;
• call center operators;
• customer service operators;
• merchandisers;
• postmen;
• procurement specialists;
• administrative staff.

Advantages of HR providers

Outstaffing service offers a lot of opportunities. For companies that do seasonal work, HR-companies offer temporary additional resources without official employment. Enterprises that have planned to release a new product can hire a team of specialists for the project period through an intermediary. Here are some other advantages:

1. Ability to focus on your business, without being distracted by staff-related issues, logistics and procurement.
2. Flexibility of staffing policy. When you need to release a new product, a team of at least 100 specialists is required, but during normal work-flow 20 employees will be enough; in such situation, it’s good to hire an HR company.

You save money on HR and accounting departments. As a rule, providers take 5-20% fee, and you do not need to hire a recruiter, HR and think about training your employees.