Outstaffing and outsourcing: what is the difference?

Outstaffing and outsourcing

Regarding hiring staff, there are two popular options: outsourcing and outstaffing. Of course, both have pros and cons, but what is the difference between them, and which one should you go for?

In this article, we will examine outstaffing and outsourcing and discuss which might be a better option for your business and why.


The difference between outstaffing and outsourcing

If you’re considering outsourcing or outstaffing for your business, you might wonder what the difference is between the two. Of course, both outsourcing and outstaffing involve hiring employees to work remotely, but there are some key distinctions that you should be aware of.

Outsourcing is when a company contracts with another company (like Baltic Assist or others) to provide services or products it could otherwise produce itself. Outstaffing, on the other hand, is when a company hires employees from another company to work on its behalf.

So, which is better for your business? It depends on your needs and preferences, but we recommend outsourcing services if you are serious about saving costs and increasing efficiency.


Outsourcing helps to reduce your costs

One of the main reasons why companies outsource is because they want to reduce costs. They don’t want to spend too much money on hiring employees and paying them generous salaries, so they eliminate them and replace them with freelancers or contractors who work remotely. 

By outsourcing, businesses can save on office space rental fees and employee benefits such as health insurance, paid time, and more. Moreover, outsourcing enables companies to ensure that their business is running smoothly without overspending on staff members who aren’t always needed at all times.

This way, businesses can increase their efficiency and spend their saved money on further growing their company.


Outsourcing is more suited for remote work

Outsourcing has become a popular option for businesses of all sizes. It’s a way to save money and get work done more efficiently. And with the rise of remote work, it’s easier than ever to find talented workers from anywhere in the world.

With today’s technology, you can have a virtual team that is just as effective as a team in an office. In addition, studies have shown that remote teams are often more productive than teams in traditional offices.

A study by CoSo Cloud revealed that 77% of employees who worked remotely at least a few times per month reported greater productivity in their daily tasks.

What is more, outsourcing gives your business flexibility as you don’t need to employ permanent staff. Instead, you can hire employees when you need them, for example, during busy seasons or when some work must be done urgently (e.g., website updates and other ad hoc tasks). After this period, you can only work with this person if they are needed or find another candidate who matches your requirements.


Outsourcing has vast potential in the Lithuanian market

Lithuania is a relatively small country with just over 2.8 million population. However, what it lacks in size, it makes up for in potential. The Lithuanian economy is growing rapidly, and there are plenty of opportunities for businesses to take advantage of.

The country has a highly educated workforce and a competitive cost of living. Lithuanian should definitely be on your radar if your company is considering outsourcing. With its large pool of talented workers and favourable business conditions, Lithuania is poised to become one of the leading outsourcing destinations in Europe. Learn in-depth about the benefits of outsourcing services to Lithuania.


Bottom line

Both outstaffing and outsourcing are great solutions when you want to hire external staff to complete your tasks.

However, if your goal is to reduce your costs, improve efficiency and focus on remote work, outsourcing might be a better option for you!

To find skilled professionals to complete the necessary tasks at your company, consider outsourcing Lithuanian professionals who are ready to offer top-quality services to foster your business growth.