What is the difference between remote staffing and outsourcing?

1. Source of work delegation
2. Cost-effectiveness
3. Recruitment
4. Access to a specialized talent pool
5. Control over work quality and productivity

With the ever-competitive market trends and evolving customer demands, many businesses have found it an effective strategy to delegate their tasks to other skilled teams instead. Since then, outsourcing and remote staffing services in the Philippines have become more popular. While both these business practices involve tapping into on-demand, cost-effective talent, they refer to two different models of hiring. In this article, we delve deeper into remote staffing vs outsourcing.

What Is Remote Staffing?

Remote staffing refers to hiring a team or staff to work outside of the traditional office environment such as their homes or another country. They work in no fixed location. Remote staff is typically treated as an extension of your in-house team. You can hire remote staff and delegate them to do specific tasks temporarily for your business.

What Is Outsourcing?

Outsourcing refers to hiring a third party to perform tasks or projects for your company. Most organizations outsource because they lack specific in-house expertise.Continue reading to learn more about the difference between remote staffing and outsourcing, and find out which is the best choice for your company in the Philippines.

Source Of Work Delegation

Perhaps the main difference between remote staffing and outsourcing is the fact that remote staff work as an extension of your team, while outsourced employees are not your dedicated staff.Remote staffing lets you hire dedicated staff or teams for your organization. You can integrate them into your processes and directly manage their performances.On the other hand, outsourced staff is contracted by a third-party firm. Therefore, these employees are not considered as dedicated staff of your company. They may not have direct contact with your organization and they will receive job orders from the third-party firm that hired them. In general, a centralized manager will handle outsourcing delegation from a single point of contract.

Cost-Effectiveness

When it comes to remote staffing vs outsourcing, outsourcing is the more cost-effective business practice. Outsourcing has become popular among companies who don’t have the in-house resources or capital to accomplish a project themselves. This hiring method saves more money because costs like wages, overtime pay, sick pay, and other benefits are all the responsibility of the third-party company.On the other hand, remote staffing involves hiring staff that is an extension of the team. This means the hiring company is also responsible for the wages and other benefits of the remote staff.If you want your operations to become more cost-effective while having access to the skills of well-seasoned professionals, outsourcing may be the best choice.

Recruitment

When you decide to go for outsourcing, you can opt out of the hassles of recruiting and retaining workers to do your specific business tasks. This is because the third-party contracting the service is in charge of the entire recruitment process.For example, at Atticus Solutions, we have an employee lifecycle that supports growth from recruitment, defining job expectations between clients, onboarding, performance management, all the way to training and development.The benefit of outsourcing is obvious, allowing your organization to continue with the business-as-usual model while knowing your project is being handled by a well-recruited and managed team.Remoting staffing can put more burden on your company as they act as extensions of your team. You will need to go through the complexities of training and recruiting. Although, you can also consider hiring remote staff that works under a service provider to avoid this burden.

‍

Download the Salary Guide to compare average salaries of top NetSuite ERP professionals.

download salary guide

‍

Access To A Specialized Talent Pool

Most businesses hire remote staff or outsource to have highly skilled workers do specific tasks for them. Given that outsourcing involves contracting a third-party firm to accomplish your projects, they will have a wider pool of talent to tap into. Outsourcing companies typically invest immense capital and time to enhance their talent networks.Take Atticus Solutions as an example. As a leading IT outsourcing company in the Philippines, we form communities within numerous technology verticals and invest in budding IT graduates and leaders to attract the right talent.With outsourcing, you get better access to workers with specialized skills. For example, an IT company may be utilizing NetSuite software, but they lack a specialist to configure and maintain the said software. In such an instance, the company may outsource a NetSuite administrator.On the other hand, hiring remote staff may mean getting limited access to specialized workers.

Control Over Work Quality and Productivity

With remote staffing, companies have increased control over work quality and productivity. Although they are not physically present in the traditional office environment, remote staffing allows better communication between your company and the hired remote staff.They are hired as an extension of your organization and you have full control of their processes, for better outcomes. With a remote team, you can benefit from timely delivery of assigned work and you will also have more flexibility over changes.With an outsourced team, you are engaging with a third-party service provider to get your company’s tasks done. As they hire the employees, you may have less control over their work hours and processes.They may also have other projects from clients, which can compromise work quality and productivity. You may also need to renegotiate terms when changes are necessary for your project. This is why it’s important to hire an outsourcing company that has performance standards.

Key Takeaway

In this article, we discussed the difference between remote staffing and outsourcing. Knowing what makes each business practice different from the other is important to understand which one will improve your business better.Atticus Solutions is a reputable company for IT remote staffing and IT outsourcing in the Philippines. We can fill your talent gaps with the most fitting IT professionals. For more information about our services, click here.