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Outsourcing vs. outstaffing: what should you choose?

When it comes to business models, there is a block of thin ice between the notions of outsourcing and outstaffing. We understand that it might be confusing and, at some points, even frustrating. That is why we created a quick guide with the help of which you can easily distinguish the difference between outsourcing and outstaffing. 

Tune in and be the black sheep of the crowd who knows everything about the business model concepts? 


Let’s start with outsourcing and its definition. In the business world, most people refer to outsourcing as a process when a person works on a project. 

It simply means that a company that hires an ‘outsourcer’ fully trusts him with the project and all the meticulous (private and public) details about it. You, as an employer, are rarely involved in micromanagement, letting your outsourced employees do everything on their own. 

In most cases, ‘outsourced’ employees work on several projects at once, including yours. 


When it comes to the term outstaffing, the definition goes in a different direction. According to outstaff gurus, "outstaffing" is a type of remote employment when a hired person carries out all the job duties for a company (client) while being officially employed by another company (outsourcing agency).

In other words, the ‘outsourced’ worker becomes a part of your team and is entitled to receive wages and bonuses. Outsourced employees work only on your company’s projects, not others. 

Key difference

As you can see, the critical difference between the two business concepts is pretty straightforward. To sum up, we can say that: 

  • Outsourcing refers to specific project support without becoming an integral part of your team. 

  • Outstaffing refers to hiring individuals for your company rather than specific projects. 

Whether you choose outsourcing or outstaffing, you, as a business owner, need to understand the needs of your business. Is it a one-time thing, or do you want to find someone who will become your right-hand at the company? Choose the business model following your answers to questions. 

In both cases, outsourcing and outstaffing are great, and you can always find these options at Restaffy.

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