To circumvent the regulation that the number of dispatched workers employed by a unit cannot exceed 10% of its total workforce, the service outsourcing of labor dispatching can be utilized. Here are the six key distinctions between service outsourcing and labor dispatching.

1. Different laws apply. Service outsourcing is governed by the Contract Law, while labor dispatching is under the Labor Contract Law, which falls under the category of social law and carries a certain public law nature, reflecting more concern for the vulnerable labor group.

2. Management authority over labor varies. In service outsourcing, the laborers performing outsourced services are directly managed by the contractor, and the principal cannot directly manage them. The principal's requirements and instructions are directly issued to the management personnel appointed by the contractor on-site for the outsourced labor.

3. The assumption of labor risks differs. In outsourcing, the core element is the work outcome, with the client focusing on the deliverables from the contractor; the labor risks of the outsourced laborers are unrelated to the client. In labor dispatching, the core element is the labor process, where the labor dispatching unit is not responsible for the work results of the dispatched laborers, and the risks of success or failure are borne by the employing unit.

4. The assumption of employment risks varies. In service outsourcing, the contractor assumes the employment risks of hiring workers independently, which are not related to the principal. Both parties, the principal and the contractor, bear their respective employment risks independently, with complete separation of their risks; labor dispatch, as a form of labor employment, involves the employer as one of the three parties in the legal relationship. The employer must assume certain employment risks.

5. Different business qualifications are required. In service outsourcing, contractors generally do not have specific business qualifications, unless there are provisions in special laws; labor dispatching units must be legally established in strict accordance with the Labor Contract Law and be corporate entities with labor dispatching administrative permits.

6. The scope of employment varies. Labor dispatching provides dispatched employees for specific positions within the employing unit, rather than for specific projects, and the number of dispatched workers typically constitutes only a portion of the total workforce for a relatively independent project. On the other hand, service outsourcing supplies employees for specific projects, not positions, to the employing unit, with the outsourced employees accounting for the entire workforce of the project.