Labor outsourcing is generally settled according to the predetermined labor unit price and the workload completed by the labor outsourcing unit, and the subject matter of the contract is generally a matter; Labor dispatch is generally settled according to the dispatch time and cost standards, according to the agreed number of dispatchers, and the target of the contract is generally a person. In other words, under labor outsourcing, the employer purchases the labor service, while under labor dispatch, the employer purchases the labor service.
Companies often choose labor outsourcing for a number of reasons, but here are some common reasons:
Cost control: Labor outsourcing can help companies reduce costs. Outsourcing companies can often offer compensatory benefits through economies of scale and specialization** compared to hiring employees in-house.
Specialized services: Outsourcing companies usually specialize in a specific area, with expertise and experience. Outsourcing allows companies to access professional services with a high level of skill without having to invest time and resources in training their own employees.
Flexibility and popularity: Leasing can make businesses more agile and able to adapt to market changes more quickly. When incremental reductions in human resources are required, leasing can be adjusted more easily without having to be more impacted by internal staffing fluctuations.
Focus: By outsourcing non-core business functions, companies can focus more on their core business, increasing efficiency and innovation.
Risk sharing: Outsourcing can help businesses share some of the risk. For example, the outsourcing company may take some responsibility for the quality of the service and the goals accomplished, reducing the administrative burden of the enterprise.
Rapid deployment: Outsourced services can often be deployed more quickly because the outsourcing company already has the infrastructure and processes in place.
However, it's worth noting that labor outsourcing can also present some challenges, such as managing cross-cultural teams, data security risks, and more.