Demystifying Outsourcing: Staff Augmentation, BPO, EOR, & More Explained

Many businesses know they need to outsource, but choosing the right model can be confusing. With so many overlapping terms, it can lead to delays, extra costs, or hiring models that don’t actually fit your needs.

The truth is, each outsourcing model solves a different problem. Some are ideal for building long-term offshore teams that you manage directly. Others are designed for handing off entire processes, like customer service or payroll, to an external provider. Some hybrid models even offer flexibility without the complexity. 

Once you understand what these terms really mean, you’ll be able to make faster, more informed decisions aligned with your growth goals.

In this article, we’ll walk you through the most common outsourcing models, explain what each one means, and show how they apply to your business needs.

Outsourcing terminology you need to know

Knowing these outsourcing terms helps you choose the best outsourcing model for your specific business needs. 

Here are some common outsourcing models you need to know:

What is staff augmentation? 

Staff augmentation means adding offshore professionals directly into your internal team. You maintain full control over their day-to-day tasks, workflows, and performance, just like your in-house employees. 

It’s ideal if you want flexibility in growing your team without losing oversight or quality control.

Staff outsourcing vs. offshore staffing: What’s the difference?

Staff outsourcing and offshore staffing are often used interchangeably, but they mean two different things. Here’s how they differ:

• Staff outsourcing refers to contracting a third-party provider to handle specific tasks or entire projects. They will be responsible for deliverables, timelines, and project execution.
• Offshore staffing means hiring employees who work exclusively for your company and are part of your internal team, but are based overseas. You manage them directly, oversee their daily tasks, and they follow your internal policies and processes.

What is business process outsourcing (BPO)?

To explain BPO in simple terms: it’s handing over business functions like customer support, accounting, or payroll, to an external provider. So instead of managing the process yourself, the partner takes full responsibility for delivering results. They handle staffing, training, systems, and day-to-day operations.

Best for: Companies looking to offload non-core processes.

Key benefit: Cost-efficiency and operational scalability.

What is staff leasing?

Staff leasing is a co-employment arrangement where a third-party provider legally employs your offshore staff on your behalf. You manage their daily work, while the provider handles:

• Payroll and tax compliance
• Local labor law adherence
• HR admin and employee benefits.

Best for: Businesses entering markets like the Philippines, Colombia, or India without setting up a legal entity.

Key benefit: Local compliance without the complexity.

What is an employer of record (EOR)? 

The employer of record means hiring talent in another country without setting up a local business. The EOR officially hires employees on your behalf while you remotely manage the employee’s day-to-day operations.

The EOR handles:

• Payroll and tax filings
• Employment contracts and benefits
• Work permits and terminations
• Local legal compliance.

Best for: Companies expanding globally without HR infrastructure abroad.

Key benefit: Risk-free international hiring.

What is recruitment process outsourcing (RPO)?

RPO means delegating all or part of your recruitment process, like sourcing, screening, and interviewing, to an external recruitment specialist. This model is perfect for high-volume hiring or to supplement your in-house recruitment team during busy periods.

Outsourcing terminologies in a nutshell

The table below compares key workforce models, outlining who manages and employs the staff, along with typical use cases for each.

Model	Who manages the staff	Who employs staff	Use case
Staff Augmentation	Client	Client or vendor	Short-term skill gaps
BPO	Vendor	Vendor	Full function (e.g., customer service)
EOR	Client (Daily)	EOR provider	Global hiring without an entity
Staff Outsourcing	Vendor	Vendor	Defined tasks executed externally
Offshore Staffing	Client	Offshore partner	Cost-efficient, scalable teams
RPO	Vendor	Client or vendor	End-to-end recruitment

Table 1. Comparison of workforce models by management, employment, and typical use cases.

So what does Outsourced do, exactly?

Outsourced helps businesses build and manage dedicated offshore teams without the hassle of setting up a local entity or navigating complex labor laws. 

Our core offering is offshore staff augmentation, which gives you full-time offshore professionals who work as an extension of your team. You manage their day-to-day work, while we handle everything else.

We provide:

• Talent sourcing and onboarding
• HR, IT, and payroll infrastructure
• Trainings and upskilling
• Compliance with local labor laws
• Office space, equipment, and remote support.

This includes those who work from home, in a hybrid setup, or in the office.

How Outsourced combines staff augmentation, EOR, BPO, and more

What sets us apart is how we combine the strengths of multiple outsourcing models into one seamless experience:

• Staff augmentation: You stay in charge of daily management while we provide vetted talent and full backend support.
• EOR /staff leasing: We serve as the legal employer, managing payroll, contracts, taxes, benefits, and compliance—all in accordance with local laws.
• Staff outsourcing / Offshore staffing: We ensure your offshore team has everything it needs to operate efficiently, including HR, IT, and admin support.
• RPO: We manage hiring end-to-end and continue supporting your staff once they’re on board.
• BPO: While we don’t operate as a traditional BPO, we help you build dedicated teams that carry out key functions under your leadership.

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Simplify offshore staffing for your business with Outsourced

Outsourcing can seem complicated at first, but it boils down to a simple question: do you want to hand off a task entirely, or build a team that works with you? 

If you prefer to stay in control and lead your own offshore team, Outsourced is the partner for you. Our model blends the best of staff augmentation, EOR, and offshore staffing. You get flexibility without giving up oversight, and full support without the overhead. 

Whether you’re growing fast or just getting started with global hiring, start building your offshore team with Outsourced. 

Contact us today and let us help you scale with confidence. 

About Outsourced

Outsourced connects businesses with the top 1% of talent from the Philippines, Colombia, India, Vietnam, Malaysia, and Argentina. With more than a decade of experience, we support over 300 global clients by building scalable offshore teams that drive performance and sustainable growth. 

Our workforce of 1,000+ professionals, backed by 100+ dedicated support staff, delivers tailored outsourcing solutions across IT, software development, engineering, digital design, marketing, finance, administration, and back-office operations. We blend cost efficiency with consistent quality to meet the evolving needs of modern businesses.

Discover how Outsourced can enhance your operational capabilities and set new standards of excellence for your business at https://outsourced.co/.