Labor outsourcing is typically settled based on the pre-determined labor unit price and the amount of work completed by the outsourcing unit, with the contract target usually being "tasks"; labor dispatching is usually based on the dispatch time and fee standards, with the cost settled according to the agreed number of dispatched personnel, with the contract target usually being "personnel." In other words, under labor outsourcing, the client purchases "labor," whereas under labor dispatching, the employer purchases "labor force."

Labor outsourcing is governed by the Contract Law, where the rights and obligations between the client and contractor are defined by their mutual contract, with the client generally not assuming responsibility for the contractor's employees. In labor dispatching, if harm is caused to the dispatched workers, both the labor dispatching company and the employer are jointly liable for compensation under the Labor Contract Law. The revised Labor Contract Law will take effect on July 1, 2013, not only requiring equal pay for equal work in labor dispatching but also providing clear explanations for "temporary, auxiliary, and substitute" positions, stipulating strict control over the number of labor dispatching workers and enhancing penalties for corresponding violations. Businesses will inevitably adopt countermeasures in response to policy changes, but you must ensure economic compensation.

Generally, technical and administrative tasks are often outsourced. It's well-known that HR management processes encompass job requirement analysis, job analysis, recruitment, screening, training, performance evaluation, employee feedback surveys, compensation and benefits, and employee relations. Among these, most tasks such as job analysis, recruitment, training, employee feedback surveys, and benefits and compensation can be outsourced. Companies often have a high demand for lower-level personnel recruitment, which is also complex, making this a suitable task for outsourcing. Additionally, administrative tasks like national mandated benefits, such as pension insurance, unemployment insurance, and housing provident fund, can also be outsourced. However, core functions such as company culture building, relationship coordination, motivation, and retaining talent are not easily outsourced and are difficult to delegate.