Outstaffing and outsourcing are two terms that came from management. They appeared relatively recently - in the 90s of the XX century. It was then that the first scientific works were published describing this form of relationship between customers and performers.
Outsourcing
The concept of outsourcing can literally be translated as "external source". In practice, it most often means the transfer of the functions of certain internal departments (for example, the HR department and the accounting department) to some external executor.
Production outsourcing refers to the transfer of any production functions or business processes. In this case, the main goal is not saving money, as you might think with a cursory analysis, but freeing up resources for the development of new directions or focusing efforts on really important things.
Accounting outsourcing began to develop actively in 1996, when the law “On Accounting” was adopted. It was this regulatory legal act that made it possible to transfer accounting to an external organization specializing in this type of service. It is worth noting that today this particular practice is very common (unlike other types).
The main problem of outsourcing development in the Russian Federation is the lack of a legislative framework that would regulate the relationship between customers and performers. This concept was not reflected in the civil code. There is no clear legal structure, scientific classification of contracts, so everyone draws up such transactions based only on their own assumptions.
Outstaffing
The term outstaffing, in turn, can be translated as "freelance". The essence of the mechanism is as follows. Part of the company's staff is removed from the main staff and is registered in the executing company. The newly minted employee fulfills the same obligations, but on behalf of the already new company, while receiving remuneration.
The difficulty lies in the fact that employees, while continuing to actually work in the same place and perform the same functions, switch to a contract for the provision of paid services by the customer company, as well as to work on a travel ticket from the executing company. So, the main difference between outstaffing and outsourcing is the relationship of the customer to the staff.
In fact, all legal relations end at this stage. The outstaffer does not bear any duties, except for the work with the personnel. The actual result is not guaranteed by anything, and they are directly connected with employees only on paper. By the way, the responsibility lies entirely with the staff.