Outsourcing vs. Outstaffing: Which Is the Best Option for Small Business?

For the success of the whole enterprise, every process should be backed up by qualified personnel. Whether it is engineering, security, or other functions, your business will only have a chance if you fulfill your teams with the right people.

Unfortunately, not all companies always have the possibility to maintain large staff. Some, especially startups and small businesses, may find their natural resources scarce. That's when alternative management patterns like outsourcing and outstaffing come in handy.

What do these terms stand for? How are they different? And which one fits your business objectives best? In this article, we are going to answer all these questions.

What Is Outsourcing?

The name of this form of management is made up of outer, source and using. As you could already guess, the main concept behind this term is the use of an external resource to close the business's need for qualified personnel.

Choosing this form of management, an organization finds a reliable provider of personnel. Then, a business can pass over the responsibility for certain functions to another company. The other company has to operate in the desired field. The relationships between the two are based on an exclusive contract.

Currently, outsourcing has found a wide application in a variety of niches. These include IT, engineering, HR, law, and more. For example, a contractor can be anyone from an essay writer to a software engineer. This form of management is rather popular among businesses. It allows to secure smooth functioning of the core processes. Outsourcing can improve the efficiency of the enterprise as a whole.

Another big benefit of this approach is that it lets businesses to save a part of their own resources. This makes it possible to use the spare organizational, financial and human resources for the development of other tasks. Specifically, those that can't be outsourced.

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What Is Outstaffing?

Unlike outsourcing that basically brings in personnel from the outer source to complement your business processes, outstaffing purposes to withdraw some specialists from the office personnel of the organization.

Using this management model, a business transfers a share of its human resources to an external agency. This implies that those specialists will have a different official employer. Meanwhile, nothing else changes for the workers. They continue performing the same roles for the same company but are registered in a different enterprise.

In most cases, the main goal of this action is to cut down the company's expenses.

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Top 5 Distinctive Features

Both of these approaches are being adopted by enterprises, and each has its own purpose. However, before you can decide which one works best for you, it is vital to see the difference.

So, here are the main features that differ these concepts.

  • Form of labor relations. When outsourcing, the chosen provider selects the right personnel for the customer. The choice is based on the specified criteria. Then, the provider assigns them to perform certain tasks for a company. With outstaffing, the employees continue doing their job but are registered in the provider company.
  • Form of employment. With outstaffing, the workers are officially registered in the contractor's company. In the case of outsourcing, you sign a subcontracting agreement.
  • Personnel functions. Outsourcing is more characterized by intellectual work, while outstaffing can be done for all types of roles.
  • Payments. Outstaffing implies that your employees will continue receiving regular salaries, just like with regular hiring. When outsourcing, depending on the type of contract, employees can receive either monthly wages or piecework pay.
  • Purpose. The main difference is that outstaffing is a way of passing over the employer's responsibilities to a provider. It rids you of the need to manage personnel records, engage in the payment of salaries, and other related duties. Outsourcing, on the contrary, implies a complete transfer of certain tasks. In this case, the provider is supposed to coordinate the work of employees, monitor the progress of its implementation, while you get a ready-made result from the process.

Outsourcing vs. Outstaffing: Which One Is Best for Small Businesses?

Now, as you know the difference between these two concepts, you are probably wondering which one is the right for your business. Since these two models generally have different purposes, the only way to make the right choice is by keeping your company's needs at the core.

Outstaffing will be a good choice for enterprises that strive to optimize their expenses. It enables you to reduce office expenses, optimize taxation, and reduce your overall spending by up to 30%. In the meantime, it can also help optimize internal processes and boost productivity.

Outsourcing is a good solution for companies that need to get certain tasks done. They may not have the relevant human resources or simply don't want to get distracted from more important tasks.

Which one is best? In conclusion, it is worth noting that, as a rule, those who resort to outstaffing are big companies employing at least 100 people. That's the case when it makes the most sense. Nevertheless, the final choice is yours.

How to Learn Much More From the Books You Read

It is one thing to read and another thing to understand what you are reading. Not only do you want to understand, but also remember what you've read. Otherwise, we can safely say that if we're not gaining anything from what we read, then it's a big waste of time.

Whatever you read, there are ways to do so in a more effective manner to help you understand better. Whether you are reading by choice, for an upcoming test, or work-related material, here are a few ways to help you improve your reading skills and retain that information.

Read with a Purpose

Never has there been a shortage of great books. So, someone recommended a great cookbook for you. You start going through it, but your mind is wandering. This doesn't mean the cookbook was an awful recommendation, but it does mean it doesn't suit nor fulfill your current needs or curiosity.

Maybe your purpose is more about launching a business. Maybe you're a busy mom and can't keep office hours, but there's something you can do from home to help bring in more money, so you want information about that. At that point, you won't benefit from a cookbook, but you could gain a lot of insight and find details here on how-to books about working from home. During this unprecedented year, millions have had to make the transition to work from home, and millions more are deciding to do that. Either way, it's not a transition that comes automatically or easily, but reading about it will inform you about what working from home entails.


When you pre-read it primes your brain when it's time to go over the full text. We pre-read by going over the subheadings, for instance, the table of contents, and skimming through some pages. This is especially useful when you have formal types of academic books. Pre-reading is a sort of warm-up exercise for your brain. It prepares your brain for the rest of the information that will come about and allows your brain to be better able to pick the most essential pieces of information you need from your chosen text.


Highlighting essential sentences or paragraphs is extremely helpful for retaining information. The problem, however, with highlighting is that we wind up highlighting way too much. This happens because we tend to highlight before we begin to understand. Before your pages become a neon of colored highlights, make sure that you only highlight what is essential to improve your understanding and not highlight the whole page.

Speed Read

You might think there have been no new ways to read, but even the ancient skill of reading comes up with innovative ways; enter speed reading. The standard slow process shouldn't affect your understanding, but it does kill your enthusiasm. The average adult goes through around 200 to 250 words per minute. A college student can read around 450 words, while a professor averages about 650 words per minute, to mention a few examples. The average speed reader can manage 1,500 words; quite a difference! Of course, the argument arises between quality and quantity. For avid readers, they want both quantity and quality, which leads us to the next point.

Quality Reading

Life is too short to expect to gain knowledge from just one type of genre. Some basic outcomes of reading are to expand your mind, perceive situations and events differently, expose yourself to other viewpoints, and more. If you only stick to one author and one type of material, you are missing out on a great opportunity to learn new things.

Having said that, if there's a book you are simply not enjoying, remember that life is also too short to continue reading it. Simply, close it, put it away and maybe give it another go later on, or give it away. There is no shame or guilt in not liking a book; even if it's from a favorite author. It's pretty much clear that you won't gain anything from a book that you don't even enjoy, let alone expect to learn something from it.


If you're able to summarize what you have read, then you have understood. When you summarize, you are bringing up all the major points that enhance your understanding. You can easily do so chapter by chapter.

Take a good look at your life and what's going on in it. Accordingly, you'll choose the material that is much more suitable for your situation and circumstances. When you read a piece of information that you find beneficial, look for a way to apply it to your life. Knowledge for the sake of knowledge isn't all that beneficial. But the application of knowledge from a helpful book is what will help you and make your life more interesting and more meaningful.