MANPOWER OUTSOURCING

What’s outsourcing all about?

In an outsourcing scenario, a particular project (e.g. Software development) is dished out to a service provider, who remains responsible for execution and delivery. The service provider is responsible for the successful completion of only the project. The provider manages the end to end execution, and can also hire talent if required. Apart from that, the client doesn’t need to take any added responsibility to complete it. This allows the client to focus on core business activities and delegate specific project(s) to the chosen service provider(s).

Advantages

Talent Acquisition responsibilities are taken care of by the service provider.
Eliminates overhead costs associated with the completion of the project.
A client does not have to manage the project or the service provider’s team.

Disadvantages

Client loses quality control of the project.
Communication with the development team is not direct and lucid.
Pain points may not be communicated with the offshore team accurately.
Costs can soar if additional projects are added along the way.

What is out-staffing? How is out-staffing different from outsourcing?

In an out-staffing model, remote workers who are employed by another company are recruited temporarily to perform certain tasks. The external agency acts as the employer of the remote team and is responsible for their salaries, bonuses, and equipment etc. The client provides and manages the assignment directly. This is a great model to choose when the client company has begun a project and requires specific assistance from professionals with certain skills that are not available in-house. Herein, lies the advantage because you can hire a top level talent for a fraction of the full-time hire. Additionally, the client company’s managers oversee project management and completion.

Advantages

This model is perfect for ongoing projects.
Specific skills that are required only for a short duration could be hired based on specific projects. Direct access and control of remote workers either onsite or offshore.

Disadvantages

Client bears the management responsibilities.
Communication channels need to be of high quality and transparent.
Deliverables are the client’s onus.

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