13 07 2020

Outstaffing and outsourcing in the UAE

Outstaffing and outsourcing in the UAE

In today's world, employers are increasingly resorting to their own search and hiring of employees with unique knowledge and experience, or to the search for subcontractors who are able to perform the necessary work quickly. Outsourcing helps businessmen in this. It significantly reduces the cost of hiring or the risks of hiring unskilled specialists.

However, there are varieties in involving third-party freelance personnel. It should be understandable what the main difference between outsourcing and outstaffing is.

Outsourcing is the delegation of your business processes or functions to a third-party contractor. In simple words - you give the business task to a third-party company for implementation. Outsourcing in this case can save you a huge part of the budget if you have a need for a specific employee and his functions for a short-time period.

Outstaffing has the opposite meaning. With outstaffing, you and your company act as a contractor to which third-party companies may apply to. The advantage for you in this case is that your employee will always be busy of work, and you can significantly reduce the cost of his salary and social security, as well as the cost of insurance, taxes, etc.

Outstaffing and outsourcing is absolutely legal and occurs with the conclusion of a contract agreement that complies with all norms, rules and laws.

The most common types of tasks that are given to outsourcing companies are:

    • Staff recruitment;

    • Personnel Management;

    • Accounting and bookkeeping;

    • Audit;

    •Technical support;

    • Legal tasks;

    • Translations and many others.

Turning to the contractor, one should not forget that sometimes there are risks. Among the main ones are:

    • Loos of privacy and confidentiality - there is a risk of your business information disclosure to third parties;

    • Quality - sometimes the expected quality of services does not correspond to the real one;

    • Pressure levers – usually, the company does not have the ability to effectively influence the employee of the contractor's company in case of conflict or critical situations.

It is worth noting that during outsourcing a significant part of financial resources is freed from the company. These resources can be used to further develop your business or your brand. A special Economic Zone DOZ (Dubai Outsourcing Zone) has been created for these purposes in the UAE. DOZ is designed to create and develop a business space aimed at stimulating the outsourcing services market in the UAE.