What is Outsourcing (or Externalization)
Benefits / Advantages of Outsourcing (or Externalization)
- Work organizations can benefit from manpower located abroad without having to hire them, deal with any red tape, take on any managerial role or take responsibility for performance or business outcomes
- Work organizations can benefit from manpower located abroad that will only consider accepting a job in another country if the Social Security and other employment related benefits and contributions are directed to their home country accounts
- Employers benefit from the possibility of holding the temporary work agency to whom an activity as been outsourced accountable for results.
- Possibility to define a clear budget and establish limits to expenses.
- No hassles or responsibilities, not only for with payments and other human resource administrative procedures, but also with management and supervision
- A solution for situations where manpower needs are more permanent in nature or for when it is not legal or feasible to contract staff on a temporary basis.
As one can observe, Temporary Staffing and Outsourcing/Externalization share many common features – with the latter being far more extensive and all encompassing.
The share many similarities, are used for virtually the same purpose and are setup and function in much the same fashion, however, outsourcing involves far more than simply providing manpower for temporary needs.
Temporary Staffing – for specific temporary manpower needs
Outsourcing (or Externalization) – for long-term or potentially permanent manpower needs, and for cases in which the client requires the temporary employment agency not only to provide workers, but to direct, manage and supervise these workers, as well as ,take responsibility for management and meeting targets and objectives.