Outtasking vs Outsourcing

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The outtasking vs. outsourcing debate is seemingly gaining popularity in the contracting industry. Well… it appears so online at least. But why the fuss? Aside from “outtasking” sounding like yet-another- buzzword, outtasking is a risky approach to “hiring out” work.

Outsourcing and Outtasking

Outtasking defined, is “hiring out” small tasks of an entire work process. People who hire out individual “parts” of a job – outtask. Outsourcing defined, is “hiring out” an entire work process – individual tasks and all. The difference between outsourcing and outtasking in this regard is easy to grasp. It’s the risk in treating both as if they were the same that really sets the two apart.

Outtasking vs Outsourcing

Earlier, we wrote about Outsourcing Service Providers vs. Employees, in which we outlined why it’s dangerous to equate outsourcing service providers with employees. For tax reasons and legal reasons – you never want to cross the line that differentiates the two.

In fact, you don’t even want to push it or go anywhere near it (that is, not unless you like sitting under the IRS microscope…). But that’s exactly what you’ll do if you outtask. Outtasking pushes that line toward the definition of employment since employment dictates a job’s “what” and “how”.

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You might argue that outtasking doesn’t dictate how a job should be done – it only dictates what should be done. That much is true to an extent. Things become risky when numerous parts of a job are outtasked to a single outsourcing service provider because when you think about it, a bunch of “what’s” eventually (read, really) become a bunch of “how’s.” Compare the following to see what we mean.

Outsourcing Compared To Outtasking