The term “outsourcing” is an English language neologism which appeared in American Explanatory Dictionaries at the beginning of 80s, since that time it is firmly based in the business vocabulary of the most European languages. In Russian it began to be used since the second part of 90s. In brief outsourcing is a transmission of activity which was executed earlier within the present company to the other firm. The outsourcing topic of any non-key function in the company is very relevant in the West as well as in our country. The specialized companies are authorized to manage a car/truck fleet, travels, personnel, logistics, even construction manufacture. The appropriate for outsourcing is the acting business, which is not forecasted to any innovations providing the company with strategic advantage. For effectiveness increasing of the main business companies often use outsourcing or rent (temporary hire) employees who are officially registered in the specialized agencies.

         The second attractive feature of outsourcing is the situation when the outer provider is able to provide economy or/and higher level of services due to the specialization, cheaper workforce or the scale effect. Outsourcing can let save budgets of the company.

        Specialized agencies provide service on rendering the Temporary Employees on short terms (Staff Leasing) and long terms (Outsourcing) and the service of withdrawal of the employee from the company staff (Outstaffing).

Outsourcing services on staff management are so various that for the beginning one should grasp the general ideas.

HR-outsourcing (human resources outsourcing) is passing to the outer management of the most part of the personnel work: hiring of employees; calculation and salary payment, fees and bonuses; draw out of official instructions; personnel training etc.

Staff leasing is when the specialized agency provides its staff employees to the client for respectively long period from three months till some years.

Outstaffing is withdrawal of the employees from the staff when a specialized agency registers the company-client personnel for its staff or hires employees for the company. Services of different agencies offering outstaffing may include the following: calculation and payment of salary (usually the individual bank accounts are opened for the employees); calculation and payment of benefits for temporary disable ness and leave compensations, business trips expenses; calculation and deduction of income-tax and social taxes; necessary accounting and references; holding of various personnel procedures according to the labor legislation; managing the compensation package of employees; termination of labor relations with the employee at the request of the Client.

The main advantage of the outstaffing model for the company-real employer is in providing ability of efficient regulation (increase or cut down) the actual number of the company employees not changing the number of staff.

            As it is shown in the analyses of the Ukrainian market of outsourcing services in personnel sphere leasing of temporary personnel is used more often. To withdraw two or three employees from the staff is not profitable and requires long-term complex contracts. But the interest of the domestic companies to outstaffing schemes is currently growing as they give possibility to react more flexible for the business environment changes.