Comparison of Staff Augmentation vs. Managed IT Services

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Understandably, managed services and staff augmentation are frequently used interchangeably, given that they both have their roots in IT outsourcing. In truth, comparing managed services and staff augmentation is akin to comparing a telescope to a microscope; despite a few basic similarities, the two are entirely distinct in shape and function.

staff augmentation vs managed it services

More businesses than ever before are looking for IT outsourcing solutions. Finding and hiring an in-house IT staff can be time-consuming, complex, and expensive, not to mention inconvenient if you have a high-growth or short-term project.

IT staffed augmentation and managed IT services are the two basic IT outsourcing types. Both approaches are viable alternatives to hiring full-time employees in-house, but the most effective strategy depends on the nature and magnitude of your projects.

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IT Staff Augmentation

What Is IT Staff Augmentation?

One of the Software Development Outsourcing Models is staff augmentation. It entails the service provider hiring additional technical talent and IT knowledge. The main goal is to assist your team by filling in for a temporary shortage of specialists or knowledge without adding additional personnel. In this instance, it is critical to focus on offering input and effort without committing to the outcome.

The Advantages of the Staff Augmentation Model

advantages of staff augmentation model

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Control and risk reduction Staff Augmentation gives you ultimate control over the project’s outcome and allows you to monitor every step of the process. The team’s project manager will prioritize work and ensure a high-quality end product.

When you outsource to a third-party supplier, you give up control over the development processes; however, with SA, you maintain the entire team in-house and manage the project, reducing the possibility of providing a poor outcome.

Flexibility: You can quickly acquire missing competencies and skills and compensate for staff shortages caused by unexpected events during project execution. You have the final say in who you hire and for how long.

Cost-effectiveness If you do not wish to hire additional employees permanently, expanding the number of employees can save you money on full-time salaries. You get the assistance of highly-trained specialists for the exact period that your team needs it.

It shortens the recruitment process. The technique for employing individuals falls on the service provider in Staff Augmentation models.

Adaptability Depending on the scope of your project, you may be able to quickly recruit unique abilities that would not be available locally or on short notice. You can also scale your team up or down as needed.

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The Disadvantages of the Staff Augmentation Model

Not only should you train your employees about the business’s internal operations, but also on how to handle them effectively.

In most cases, onboarding new team members require additional time and resources from the existing team. This is because you lack the resources necessary to monitor their job.

It is best suited for temporary assistance. There is a possibility that augmented staff will leave the project before it is completed, in which case you will have to restart the hiring procedure.

Staff augmentation may increase dependency on a single third-party source.

The scale of engagement It’s possible that you won’t be able to find enough talent from a single seller. This may necessitate collaboration with various vendors and staff, resulting in variances in quality.

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When is Staff Augmentation useful?

There are times when this type of outsourcing is the ideal option. The following are the most important reasons.

It would be best if you strengthen your internal team. At the same time, you have software developers on staff. Some new ventures will necessitate the use of presentation skills. In this instance, you should beef up your IT crew.

You are pressed for time. From job posting through onboarding, the recruitment process takes a long time. The staff augmentation concept allows you to hire remote software developers regardless of contract type quickly.

You must have specialized skills. You must swiftly increase the size of your staff by adding in qualified engineers or technicians.

As a for-hire bridge, short-term employment can lead to long-term employee relationships.

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Managed IT Services

What are Managed IT Services?

Managed IT services comprise outsourcing your company’s management and support to increase operational efficiency. The managed service provider is hired as a full-time employee.

managed it services

These companies have formed a trained team of professionals to relieve the technological burdens of a broad customer base, allowing them to focus solely on their core business and avoid the time-consuming process of obtaining and maintaining in-house employees.

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The Advantages of a Managed IT Services Model

Savings in both time and money You can use the managed services model to hire a team of skilled and experienced experts equipped with the necessary technology and resources to work on your project. You save time, money, and effort by receiving what you need in this manner. Their services are fixed at a price and fluctuate based on the work completed.

The Control Service provider is in charge of the project from start to end. However, choosing an experienced and reliable company with a proven track record of producing high-quality goods and exceptional results is vital.

Monitoring Throughout the project, the supplier monitors all processes and guarantees that all necessary tools and resources are available.

The vendor is in charge of the project’s outcome. MS organization evaluates all risks and creates an acceptable project strategy.

The cost model has been improved. Because managed IT service providers charge based on outcomes. If your demand for a particular service rises or falls, the price will adapt proportionately.

Ensured outcome A service level agreement (SLA) outlines the scope and length of each project and is used to support managed IT services. Managed service providers will go to great lengths to keep commitments to be reimbursed and increase the value of their employment.

Talented individuals are available. Because MSPs are usually larger than staffing agencies, they may be able to provide a broader range of skills, knowledge, and solutions to meet changing customer expectations.

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The Disadvantages of the Managed IT Services Model

Incorrect service definition: Defining nonsensical services/touchpoints increases complexity. Outsourcing short-term endeavors may have more significant disadvantages than recruiting more people.

Over-specification: Excessive definition of how a service should be provided frequently leads to the service provider functioning less than optimally.

Outsourcing the incorrect processes that necessitate a high level of expertise and are unique to the client business may not be suitable for managed services or even outsourcing in general. Provider lock-in can occur as a result of knowledge loss.

It is not always possible to get all you require at a modest cost. Some tools and resources have higher costs.

Because the company offering managed IT services works remotely, the solutions and problems that need to be fixed right away must be done by you.

Keep in mind that you are working with a third-party service provider and are providing access to your company’s confidential data. To prevent unnecessary risks, it is critical to pay close attention to the conditions of the non-disclosure agreement.

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When is a Managed Services Model Appropriate for You?

As your firm expands and additional employees join your team, security and networking solutions get more complex when you look to the future. Managed service providers can deliver faster and more efficient networking and security solutions.

The ability to quickly accept new technology. Through thorough technological preparation, managed service providers may deliver client-centric solutions.

When you require dependable budgeting, Most businesses perceive IT costs to be an investment. Managed services offer ongoing maintenance, which helps you avoid costly shocks that can wreak havoc on your monthly budget.

Your business must comply. Risks to your privacy and security could land you in serious jeopardy.

When you want to put together a solid technical team, Your technical staff requires several unique positions, and filling such roles internally may be costly.

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IT Staff Augmentation vs. Managed Services: What’s the Difference?

The appropriate model for your company is determined by its mission statement, purpose, and size. The complexity of the information technology sector makes it impossible for most organizations to stick to a single model.

Even as businesses become more globally competitive, choosing one model over another may not be the best option. By achieving a balance between the two, you may optimize the benefits of both staff augmentation and managed services.

The managed IT services model is the best option for forward-thinking firms, especially in terms of long-term cost savings and efficiency.

Best for

Flexible projects temporary requirements;

Low-budget endeavors

Entire projects are Long-term outsourced endeavors;

Cost savings over time

Contribution

The service provider agrees to supply specified resources at a specific price.

The service provider controls all or a portion of your IT service component.

Billing

Billed on a per-hour basis, frequently biweekly

Billed on a retainer basis, frequently annually

Processes

Committed to contributing an opinion

Committed to achieving a goal

Risk

Client

Service Provider

Engagement

Full time

Full time/Part-time

Pricing

Pricing is determined by availability and total hours completed.

Pricing is determined by the level of service and the outcome.

Management

Client

Service Provider

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Three Issues to Consider When Choosing Between Staff Augmentation and Managed Services Models for Your Business

Following the brief evaluation of different solutions, there is one more step. To assist you in making a final decision between staff augmentation and managed services, we’ve compiled the top three most pertinent questions for you to consider.

1. Are you looking for a project or operational scalability?

Two models provide a range of scaling options to accommodate various requirements. On the one hand, staff augmentation meets the requirement for an additional pair of hands and is an excellent way to scale specific projects.

On the other hand, a managed services model enables you to scale operations in response to your business’s growth. This technology enables businesses to handle a greater volume of work while maintaining efficiency.

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2. Are you interested in a short- or long-term relationship?

As a result of the above contrast, it is evident that the duration of client-vendor interactions varies significantly between the models. The collaboration ends once the staff augmentation provider has employed a suitable number of software engineers for the project.

In contrast, businesses typically retain a managed services provider for a significantly extended period. Building a business, providing recommendations, and transforming business concepts into reality takes time.

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3. What level of control do you anticipate maintaining?

Another distinction is related to the business’s degree of control while collaborating with a service. In the case of staff augmentation, the client is critical in controlling the hiring and onboarding processes.

Executives have complete control over all project parts and ensure the work is completed to a high standard. When it comes to managed services, the client company merely outlines the tasks and specifics; the partner handles all management.

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Final Thoughts

There is no definitive answer to the IT managed services vs. staff augmentation debate. These models address various business requirements and vary in terms of scaling options, duration of the partnership with a BPO provider, and degree of control.

However, with Team Augmentation, our team becomes an extension of yours. Each team member is carefully chosen based on the criteria and expertise you demand. They become fully immersed in your project, preserving your corporate culture and working by your strategic objectives.

If you’re seeking a winning business solution, consider establishing your R&D center with Groove Technology. This is an ideal opportunity to save expenses and obtain prompt and high-quality recruitment, accounting, legal services, and spectacular office space. Get in touch with us and find out everything you need.