The Differences Between Outsourcing and Remote Working

What is an outsourcing company and what is the difference between outsourcing and hiring remote workers?  

First, we’ll need to define what outsourcing means. Unfortunately, the term has been the subject of negative association with job loss. There is this general feeling that jobs are being taken away from locals and given to someone from another part of the world.  That fact only tells half the story.

“Outsourcing” itself does not mean that a project is being given to companies or individuals in other countries. Outsourcing is when one company contracts the services of another company or individual to provide services that might otherwise be performed in-house. 

The outsourcing company can be based abroad or just down the street. The tasks are usually being outsourced because the company lacks certain resources (time, personnel, financial) to accomplish them.

Traditionally, to acquire outsourced staff, a company has two options: if they wish to outsource a project that requires a team of workers, they can go through an outsourcing company that  will allocate staff for them who will be set up in spaces that are traditionally known as call centers.

The other option is outsourcing directly to individuals. Project-based tasks such as graphic design, website development, accounting, content writing are often outsourced to ers acting as freelancers.

A key advantage when dealing with an outsourcing company is that more often than not, these are legitimate companies with solid experience. That means that clients enjoy hassle-free services that meet professional standards. The advantage with outsourcing to individuals is that clients get to interact directly with the subcontractor.

But there are disadvantages to both as well. With individuals, there are added burdens and risks. Risks including the fact that a subcontractor could take your money and leave you holding the bag, and burdens of added HR and payment related tasks. With an outsourcing company, there are costs on top of the salaries that are paid to their call center agents.

But then there are companies that offer outsourcing services with a twist.

A company such as Remote Staf that can provide the best of both worlds.

Instead of agents in a call center, Remote Staff provides companies with home-based remote workers. Companies have the option of hiring individuals or teams.

Because these outsourced staff work from home, a lot of costs such as equipment, internet and software charges are eliminated.

Also, being home-based reduces the instances of absences or tardiness.

Remote Staff also provides compliance and HR support, to ensure that the outsourced staff are starting work on time, are working exclusively for the client, and are also paid on time.