The outsourcing of manpower has been a common practice in India for many years, but it has gained particular momentum since 2006. Not only is this trend prevalent in the private sector, but it is also increasingly being adopted by public sector organizations and government establishments, who have found it to be an effective and efficient way to manage their workforce. More and more companies are successfully adopting this practice, as it protects them against the inefficiency of staff, high replacement cost, compliance issue and complexity of labour laws.
Sometimes, people get confused between hiring manpower and outsourcing of manpower. When you outsource the work to a third party, they get the job done on your behalf and charge you an hourly, monthly, or per-project basis. Whereas, when you hire manpower resources, they are like your employee but on a contractual basis.