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Differences between outsourcing and outstaffing
| (from the English “outsourcing” - “external source”, “use of other people’s resources”) | (from the English “out” - “outside” and “staff” - “staff”) | |
| Risks from concluding a contract | Absent if formatted correctly | Banned from January 1, 2021 . Outstaffing has been replaced by official activities to provide labor to employees, which can be carried out only in strictly limited cases by law. |
| Subject of the agreement | The customer transfers to the contractor the execution of business processes or functions that were previously carried out by the customer’s internal divisions. The transferred functions are non-core for the customer. For example, legal services, marketing research, call center services, cleaning buildings, preparing and delivering lunches to the office, providing transportation services, maintaining the operation of a computer network and information infrastructure, providing advertising services, providing security, searching, recruiting and training personnel, etc. d. | The contractor sends its personnel (workers) to the customer to perform labor functions. In this case, the subject of the contract is not people, but services related to this area. As a rule, non-core personnel are transferred to an outstaffing agreement, for example, technical service employees, sales representatives, insurance agents, drivers, salespeople, etc. |
| Actual place of work | The actual place of work for the employee remains the same. Outsourcing is not associated with the physical movement of personnel from the contractor’s company to the customer’s company | When outstaffing, employees work on the customer’s premises |
| Factual Guide | The tasks for the employees are set by the performer. The customer does not have any rights to manage personnel | The personnel provided are under the control of the customer. It is he: determines the range of job responsibilities of assigned employees and the scope of their work; sets specific tasks; provides means of production; teaches, etc. In this case, the contractor may not know what the workers he provides are doing. |
| Control | The customer can only evaluate the result of the service itself (clean office, properly prepared reporting, etc.), but not the process of the contractor’s employees. They are not under his control and management | The provided personnel is under the control of the customer |
| Party responsible for the final result | The performer is responsible for the final result. If necessary, the customer can make claims against him | The customer himself is responsible for the results of the work of the provided workers. He can make claims to the contractor only if he provided him with personnel untimely or in insufficient quantities. |
Agreement No.____
________________ "____"__________201__
____________________________, hereinafter referred to as the “Customer”, represented by ______________, acting on the basis of ____________, on the one hand, and _____________, represented by _____________, acting on the basis of the Charter, hereinafter referred to as the “Contractor”, on the other hand, have concluded this Agreement on the following :
SUBJECT OF THE AGREEMENT
1.1. This Agreement was concluded in order to optimize the functioning of the Customer by concentrating his efforts on conducting his core business.
1.2. The subject of this Agreement is the transfer by the Customer to the Contractor of non-core functions in the manner and on the terms established by this Agreement.
The list of non-core functions transferred by the Customer to the Contractor (hereinafter referred to as the “List of Functions”) is contained in Appendix No. 1, which is an integral part of this Agreement.
1.3. The Customer instructs, and the Contractor assumes the obligation to perform in the interests of the Customer the non-core functions of the Customer transferred to him under this Agreement in accordance with the List of Functions (hereinafter referred to as “On Trade Secrets”) and cannot be disclosed to third parties without the written consent of the Customer.
PROCEDURE FOR EXECUTION OF THE AGREEMENT
3.1. The Contractor provides the Customer with monthly written reports on the progress of the provision of services under this Agreement, on the basis of which the Parties draw up and sign a Certificate of Provision of Services.
3.2. The Service Provision Certificates signed by the Parties are confirmation of the provision of services by the Contractor to the Customer.
3.3. Reports are provided by the Contractor by the ___ day of the month following the reporting month. The Service Provision Certificate is drawn up and signed by the Parties within ___ (______) business days from the date the report is provided.
3.4. When providing services not specified in the List of Functions, the Contractor provides the Customer with an additional report and the Parties sign an additional Certificate of Provision of Services, which confirms the provision of additional services by the Contractor to the Customer.
PAYMENT ORDER
4.1. The Contractor's remuneration is _______ (_________) rubles, including VAT in the amount of _____ (________) rubles.
4.2. The remuneration is paid monthly before the ___ day of the current month.
4.3. The remuneration is paid by transferring the amount specified in clause 4.1 to the Contractor’s bank account.
4.4. The date of payment of funds is considered the day the funds are credited to the Contractor's current account.
RESPONSIBILITY OF THE PARTIES
5.1. For failure to fulfill or improper fulfillment of its obligations under this Agreement, the guilty Party shall pay the other Party a penalty in the amount of ___% (__________ percent) of the amount of unfulfilled obligations for each day of delay in performance.
5.2. For failure to fulfill or improper fulfillment of their obligations under this Agreement, the Parties bear other liability in accordance with the current legislation of the Russian Federation.
5.3. Neither Party will be responsible for the complete or partial failure of the other Party to fulfill its obligations if the failure is a consequence of force majeure circumstances, such as: fire, flood, earthquake, strikes and other natural disasters, war and hostilities or other circumstances, that are beyond the control of the Parties and that impede the implementation of this Agreement and that arose after the conclusion of the Agreement.
If any of such circumstances directly affected the failure to fulfill the obligation within the period specified in the Agreement, then this period is proportionately extended for the duration of the relevant circumstance.
5.4. The Party for which it has become impossible to fulfill its obligations under the Agreement is obliged, no later than 5 days from the moment of their occurrence and termination, to notify the other Party in writing of the occurrence, expected duration and termination of the above circumstances.
PROCEDURE FOR CONSIDERATION OF DISPUTES
6.1. All disputes and disagreements that may arise between the Parties will be resolved through negotiations.
6.2. If controversial issues are not resolved during negotiations, the disputes are subject to consideration in the Arbitration Court __________________________.
CONTRACT TIME
7.1. The validity period of this Agreement is from "___"_________ ____ to "___"_______ ____.
7.2. This Agreement may be terminated at any time at the initiative of each Party with mandatory notification to the other Party ____ (_____) business days before its termination.
7.3. If neither Party declares its desire to terminate this Agreement ___ (______) days before the expiration date, this Agreement is considered extended for the next _______ on the same terms.
7.4. All changes and additions to this Agreement, as well as its termination, are considered valid provided that they are made in writing and signed by authorized representatives of both Parties.
OTHER CONDITIONS
8.1. All additional agreements of the Parties, acts and other annexes to this Agreement, signed by the Parties when executing this Agreement, are an integral part of it.
8.2. This Agreement is drawn up in two copies having equal legal force, one for each of the Parties.
ADDRESSES AND DETAILS OF THE PARTIES
Download the document “Standard outsourcing agreement”
What is not outsourcing
Outsourcing is also very often confused with two concepts – freelancing and dropshipping. But these are different concepts.
| Freelancing | Outsourcing |
| Type of employment | Form of service provision |
| In most cases, work is based on a personal agreement | A contract is required |
| Level of responsibility is low | The fact of cooperation has been officially confirmed with an understanding of full responsibility by both parties |
I recommend to read. Interview with Nika “After switching to freelancing, my income increased 3 times.”
A freelancer can be considered an outsourcer only if there is an officially signed agreement by both parties.
Dropshipping is a mediation system. Here we are not talking about the provision of services, but about the sale of goods, or rather, resale for a certain margin. I talked about my experience in the field of dropshipping here.
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What is outsourcing in simple words
Translated, “outer-source-using” just means “attracting from the outside.” That is, outsourcing is services that a company actively uses, but is not itself a direct producer, but attracts third-party companies that solve any problems of the customer organization under a previously concluded agreement within the framework of long-term cooperation.
Who is an outsourcer? This is a company or an individual specialist who provides specialized services. Examples of the most common forms of interaction between the customer organization and the outsourcer:
- office cleaning services;
- catering;
- IT services;
- water delivery;
- accounting
In simple words, an outsourcing company is a company/organization that provides highly specialized services on a contract basis. An outsourcing agreement is concluded for a period of one year or more.
Comments on the document “Standard outsourcing agreement”
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| 5 Tatiana | 03/24/2013 at 22:45:36 Great template! Thank you!!! |
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| Irina | 01/05/2014 at 21:22:39 Correctly, everything is provided for! Clearly simple, no frills! |
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| Svetlana | 07/03/2014 at 13:28:10 Hello, please tell me, we plan to entrust all activities of the enterprise to the employees of the organization with which we are concluding an outsourcing agreement, is this possible, and not some specific “non-core narrow functions” as reflected in your agreement. We work in a simplified manner. All organizations are represented by one director. It’s just that one organization does not have a single employee on its staff, so we want to entrust the workers of another organization, also essentially ours, to carry out all the activities (conclude contracts, do accounting, etc.) |
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| Maksim | 07/09/2014 at 17:31:53 What does Appendix No. 1 to this agreement look like? |
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| 5 Kolly | 09/27/2014 at 08:33:14 Thanks for the sample! We are just thinking about concluding an agreement with BDO Unicon. |
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| Natalia | 02/18/2015 at 23:17:51 Thanks for the agreement! I have a question. Is it necessary for an enterprise to obtain a license for medical activities if medical workers of a medical institution work at the health center of the enterprise on the basis of an outsourcing agreement between the enterprise and a healthcare facility (the healthcare facility has licenses for medical activities) |
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| 5 Lyudmila | 03/25/2015 at 18:15:53 excellent standard contract. Thank you. |
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| Ekaterina Yurievna | 07/28/2015 at 18:16:48 Thank you for the valuable material! |
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| Boris | 08/26/2015 at 07:56:07 Good competent template |
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| 5 Elena | 09/10/2015 at 07:45:19 the agreement is very useful! everything is clear and understandable THANK YOU!! |
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| 5 Irina | 10/26/2015 at 4:13:44 pm Thank you. I will use a lot of this template for my contract. |
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| Maria | 12/09/2015 at 15:15:21 I think this is what I was looking for. |
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| Masha | 12/13/2015 at 22:26:49 It won't require much editing, but that's what I was looking for. |
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| 5 Stepanida | 02/15/2016 at 11:46:53 Very useful information. Thanks for the resource! |
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| Anastasia | 03/28/2016 at 20:24:50 useful agreement, found the information I needed |
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| Elena | 05/11/2016 at 20:11:51 thank you very much it helped a lot |
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| Igor | 06/05/2016 at 23:05:23 Excellent standard contract. Thank you. |
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| Denis | 06/06/2016 at 13:50:05 Everything was done wonderfully |
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| Leonid | 06/08/2016 at 19:44:10 Great resource. Thanks to the dogovor-urist.ru team |
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| Anton (“Nizhny Express”) | 07/07/2016 at 15:24:21 Thank you, we took the agreement as a basis, we didn’t have to “reinvent the wheel” |
Reply 0
| 5 Dmitriy | 07/22/2016 at 09:49:41 Useful informationThanks for the template |
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| Ruslan | 07/27/2016 at 12:17:44 Thank you for your work, which makes life much easier! |
Personal message | Reply 0
| 5 Olga Status: Client | 08/13/2016 at 20:07:45 thank you, I used it with almost no edits |
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| 5 Svetlana | 08/24/2016 at 10:17:20 The contract is useful, I use the text in my work - optimal and competent content. Thank you! |
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| Zoya | 11/10/2016 at 21:41:43 Thanks for the help!!!! Great template!!! Everything is competent and capacious!! |
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| 5 Anastasia | 11/21/2016 at 11:44:47 Thank you! A good template, very useful. |
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| 5 Igor | 01/09/2017 at 10:19:19 As a template, we simply cannot replace it! |
Reply 0
| Tatiana | 02/13/2017 at 13:36:41 Thank you. The template is excellent, it fits perfectly. |
Reply 0
| 5 GUEST | 03/18/2017 at 13:22:57 THANK YOU! HUGE! IT HELPED! |
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| Irina T | 03/28/2017 at 22:45:50 Thanks for the sample. |
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| 5 Dina | 04/10/2017 at 18:01:33 Very valuable material, outsourcing is becoming more and more relevant! |
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| 5 Kuanysh | 04/13/2017 at 17:14:13 Thank you. I took this template as a basis, supplemented and adjusted the very minimum, and then only for our specific profile. Very grateful! |
Reply 0
| Natalia | 04/19/2017 at 15:02:50 Great shape! It was very convenient to use it without having to think of anything else. |
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| 5 Alexei | 05/10/2017 at 12:15:19 Good "fish" of the agreement |
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| 5 Catherine | 05/30/2017 at 11:30:35 Great template. Fits perfectly. |
Reply 0
| Oleg | 06/02/2017 at 10:39:36 A well-prepared contract template that only requires clarification of details on responsibilities |
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| 5 Lisa | 06/08/2017 at 07:27:49 Great! Thank you very much for providing the template. |
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| Milena. | 07/03/2017 at 15:00:15 Great template! Thank you!!! |
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| Evgeniya | 07/25/2017 at 10:38:33 What does Appendix No. 1 to this agreement look like? |
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| 5 Olga Egorova | 08/15/2017 at 12:09:06 Great. Let's take it as a basis. Thank you. |
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| Ivan | 08/31/2017 at 09:29:31 It won’t work, very generalized, without specifying specifics, not quite to the point……. |
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| Irina | 09/08/2017 at 18:48:29 A very clear form of the contract, Thanks to the creators, it will be very useful to me in my activities.. |
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| 5 Artyom | 09/14/2017 at 08:41:22 What you need, you don’t even have to look for something else to compare! |
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| Dmitriy | 09.22.2017 at 11:31:20 thank you for the template, so as not to invent a “bicycle” - it will come in handy .. |
Reply 0
| AMM | 10/03/2017 at 14:45:39 such an agreement is normal, but too generalized |
Reply 0
| Dima | 10/03/2017 at 16:58:59 Thank you. Useful. |
Reply 0
| 5 Andrey | 10/05/2017 at 23:37:23 Thanks useful information |
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| shukhrat | 10/12/2017 at 07:13:52 excellent useful information |
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| Alexander | 10/17/2017 at 14:52:32 I would like to see Appendix 1 |
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| 4 Ksenia | 11/15/2017 at 00:34:56 Thank you, very useful |
Reply 0
| 5 Natalia | 11/29/2017 at 11:40:51 pm Competent agreement. Thank you. I'll add it to my bookmarks |
Reply 0
| Elena | 12/18/2017 at 10:09:52 Thank you, I haven’t seen such a professionally drawn up contract for a long time |
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| 5 Paul | 01/18/2018 at 14:31:40 Nice standard contract! |
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| Svetlana Postylyakova | 02/28/2018 at 11:57:16 Hello, question: where are employees paid, where are deductions for hazardous working conditions, and taxes of 13%. |
Reply 0
| Natalia | 05/17/2018 at 13:19:27 Great deal, thanks! |
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| Elena | 06/22/2018 at 09:41:49 Thank you Quite simple and everything is clear. |
Reply 0
| Yuri | 10/09/2018 at 17:35:16 Not really. I'm looking for an example of a staffing contract, i.e. one person provides another with services for the performance of certain works or functions by its employees. |
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| Irini | 10/31/2018 at 15:41:35 Very useful. THANK YOU |
Reply 0
| Salavat | 11/26/2018 at 12:42:39 Concise and understandable, but the list of services was not enough. Although the document itself is a solid 5! I express my gratitude. |
Reply 0
| 5 Irina | 02/24/2019 at 06:42:26 What you need, all the nuances are taken into account! Great! Thank you! |
Reply 0
| 5 Andrey | 02/24/2019 at 07:57:09 Thanks for a good template! |
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| 5 Andrey Vitalievich Degovtsov | 03/07/2019 at 02:12:11 Thank you, very timely and high quality. Thank you. that you are! |
Reply 0
| 5 Paul | 03/28/2019 at 16:44:53 Helped a lot, thanks! |
Personal message | Reply 0
| Irina Status: Client | 06/19/2019 at 15:13:11 Please send the form of Appendix 1 to the standard outsourcing agreement |
Reply 0
| Alexander Petrovich | 07/01/2019 at 01:19:02 The template is good. Alexander Petrovich |
Reply 0
| 5 Ilya | 08/20/2019 at 17:02:36 Excellent deal. Thank you. |
Reply 0
| 4 Edward | 08/28/2019 at 07:30:17 Good template to work with |
Reply 0
| Ekat Nick | 10/09/2019 at 14:41:30 found the required item |
Reply 0
| 5 Ruslan | 02/05/2020 at 09:20:44 5+, sorry no app |
Reply 0
| Anastasia | 06/04/2020 at 20:59:13 A useful example of a contract. Thank you |
Reply 0
| Andrey | 06/29/2020 at 10:32:41 great sample! Thank you. |
Reply 0
| 5 Yar | 02/03/2021 at 18:48:56 Super contract. I took it as a basis :) |
Reply 0
| Zamira | 02/23/2021 at 07:05:26 Excellent template, everything is clearly and concisely written |
Reply 0
| Oleg | 03/12/2021 at 09:36:03 Thanks for the template! We will refine it to suit our direction. |
Reply 0
| 5 Julia M | 03/17/2021 at 14:07:58 A good template, you can easily modify it to suit your needs |
Reply 0
| Incognita | 04/05/2021 at 12:12:30 simple and clear. You can model it to suit your needs. |
Reply 0
| 5 Elena | 04/27/2021 at 10:53:08 Great as a base |
Reply 0
| Leonid | 04/29/2021 at 11:51:18 Thank you! Great deal, very helpful |
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How to switch to Outsourcing? 5 steps to implementation
So, you have thought it over carefully and decided to delegate part of the company’s work to an outsourcer. Where to begin? Here are step-by-step instructions for you.
- Decide what type of activity you want to transfer to remote operation. Calculate how much time and money this service currently requires, and what you will get as a result of delegation to an outsourcer. The better your analysis, the less disappointment you will have later.
- Choose an outsourcing company based on your responsibilities by carefully studying all offers on the market. Make a detailed list of requirements and clarify the terms of cooperation. When choosing, I recommend paying attention to reviews, the company’s reputation, work experience (if this is important to you), license and insurance.
- Conclude an agreement with the service provider, having previously discussed the deadlines for completing the work and the terms of payment. If you have any doubts or are doing this for the first time, I recommend studying the contract and all its terms with a lawyer. Be sure to sign with a lawyer.
- Try to establish the process of monitoring the progress of work as efficiently as possible (reporting, access system). This is worth considering carefully, especially if the work is important to you and if it is performed remotely. The contract must specify all deadlines and penalties in case of non-compliance.
- For your part, comply with all the terms of the previously concluded contract regarding wages. This is the key to effective cooperation, fruitful work and business development.
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What does an outsourcing company do - examples
Let's consider the most typical situations when a company decides to turn to an outsourcer.
Situation 1. The volume of services you need is so small that there is no point in hiring a permanent employee.
Situation 2. You periodically need certain services, that is, not constantly. In such cases, it is also easier to attract an external contractor.
Situation 3. It happens that a business is going through a difficult period and circumstances force a reduction in labor costs and taxes for hired employees.
And a few more examples when outsourcing is simply necessary for you.
Example. from Moscow offers services for the selection of general workers. We have a large staff of remote workers who are ready to begin completing assigned tasks at any time. Drivers, loaders, promoters, packers, packers, warehouse workers, electricians and much more. All employees have undergone special training and approach their work responsibly.
Example of a company providing outsourcing services
To take advantage of the offer, you must leave a request, after which a manager will contact you and discuss the details of the contract. In just a few days you will be able to sign an agreement and hire a new employee.
It is important to know. In cases similar to the above example, you do not waste the resources of your HR department; the outsourcer company selects personnel for you; you also do not calculate salaries, tax and pension contributions; the outsourcer also takes care of all organizational issues.
On this topic. Business ideas 2021. What is profitable to do now.
Agency labor: what is it and why is it prohibited?
In 2021, Article 56.1 appeared in the Labor Code of the Russian Federation, which provides a clear definition of the concept of “agency labor,” or labor at the direction of a nominal employer, but under the direction and in the interests of another company. Such work in Russia.
The essence of agency labor is as follows: one company or entrepreneur (contractor) transfers a certain number of workers to another organization or entrepreneur (customer). As a result, employees work for the customer, and the contractor is the employer. The contractor, in turn, enters into employment contracts with them, pays them wages and benefits, and maintains personnel records. Thus, employees work in an organization with which they are not connected either by labor or civil law relations (see the diagram below).
The state of affairs in outstaffing that existed before 2021 was unfavorable for the employee. An employee was hired to work for one company, and he worked for another. The employer did not bear any responsibility for the employee. Most often this concerned work in hazardous industries, where no payment was provided for hazardous work. Organizations with harmful and dangerous working conditions thus saved on insurance premiums for injuries. These conditions served as the reason for the adoption of a new article 56.1 in the Labor Code of the Russian Federation.
It is possible to lease employees from another company, but now outstaffing has changed and is regulated by a new one.
