Staff Augmentation and Managed Services are terms that are commonly used in unison. However, they are completely different terms and practices used for solving the same problem. Your business, your focus, and your mission statement will determine what is best for you. The complexity of the IT industry makes it impossible for most businesses to adhere to a single model.
Even as businesses become more internationally competitive, relying on one model over another may not always be the best option. You will maximize the advantages of both workers augmentation and managed facilities by striking a balance between the two.
Today we will do a comparison between both of these practices, so that you can choose an option that best fits your priorities. Let’s start with defining both terms:
Staff augmentation is a versatile Business Process Outsourcing (BPO) approach that allows you to recruit IT expertise from all over the world and incorporate them directly into your internal IT team. The aim is to recruit more temporary employees to your internal team based on the additional skills needed to achieve your business objectives. You have the option of selecting from a list of candidates that meet your requirements.
Vendors who provide services and personnel augmentation will assist you in adding professional technical support to your in-house team on a short or long-term basis. These resources are directly employed by the vendor, which reduces the expense and risk of making new full-time hires. Remote developers recruited by staff augmentation, on the other hand, can work on a single project at a time.
In order to boost business operations, managed IT services include outsourcing the company’s IT management and support. A managed service provider (MSP) replaces a full-time IT team that you would usually have on board. These firms have a skilled team of experts that can lighten the technical burden for a wide variety of customers, enabling them to concentrate entirely on their core business while avoiding the time-consuming challenge of recruiting and maintaining in-house IT personnel.
Advantages of Staff Augmentation
- Get a Variety of Talented Options
There will be occasions when the internal development team lacks the expertise necessary to complete a specific task. Organizations can easily access a large talent pool of highly qualified developers, designers, project managers, and other professionals through staff augmentation. It lowers the risk of project disruption by allowing people with the necessary expertise to be brought on board quickly. They will get started right away and keep working until the project is completed on time.
- Helps Save Cost
One of the key reasons why staff augmentation is so common is because it can save you a lot of money. Scaling up a company’s team with a staff augmentation service would cost much less than hiring new workers. Since the services gained by personnel augmentation are only used for a limited time. They are only paid for the number of them that are needed, so when the work is completed, the expense is also completed.
- Save Time
Hiring and firing employees is a time taking task and more importantly finding employees on a short notice is even more difficult. You can lose potential business, just because you didn’t have a resource available. Staff Augmentation companies help you find capable employees on short time notices as well. So that you never miss a chance to grow.
If more resources are needed at any point during the project, they can be easily added. When that stage is over and they are no longer needed, the staffing service provider will simply return them. Staff augmentation is the only way to achieve this degree of scalability and versatility. That is why, regardless of the project’s difficulty, it is such a great way to meet short-term requirements.
Drawbacks of Staff Augmentation
- Need someone for supervision
Since the new resources brought into work on the project aren’t employees of the organisation, extra supervision is needed when on-boarding external talent. This will necessitate further control of their work to ensure that nothing is lost in the shuffle.
- Not a Long Term Solution
Staff augmentation is great for short-term projects, but for a long-term this isn’t always suitable. You will need someone to track the remote teams progress, they might not get along with others in the company, there may be communication barriers, time constraints, and etc.
- Bringing up to Speed
This can be a bottleneck if there are strict internal protocols that must be followed for all of the work that needs to be completed. New employees must first be brought up to speed so that they can follow the procedures at all times. This has to be done each time a new resource comes in.
Benefits of Managed Services
- Focus on the Right Objectives
Is IT infrastructure maintenance eating up so most of your time and preventing you from focusing on your core business goals? That could be harmful to your company’s long-term success. An end-to-end approach can be used to free yourself from the hassle of maintaining infrastructure by relying on a managed services provider. The service provider takes care of it, allowing you to concentrate on your business objectives.
- Offer More Services
Some employees are more expensive to hire than others and for that reason a lot of companies don’t offer certain services. But hiring through a managed service provider will give you the opportunity to choose from cheaper sources as well. Cheaper because these remote employees can also be hired from 3rd world countries. This way you can offer more services for a fraction of the cost. It’s a win-win situation!
- Cut Costs
Managed services should only be used as a long-term option to take advantage of the lower total expenses. It can also assist to make IT spending more predictable because the service provider packages the cost into a monthly or annual payment. In contrast to personnel augmentation services, where the average contract time is sometimes only a few months, the service provider is ready to be more flexible on price because they have the guarantee of a long-term contract.
Drawbacks of Managed Services
- Trust Issues
When you outsource your IT administration to a service provider, keep in mind that they may also outsource parts of their technical responsibilities to teams in other countries. If you desire anonymity, always check with your managed services provider to see if this is the case and if they are ready to sign an NDA.
- Less Flexibility
An internal IT team is open to new ideas, experimenting with various tools and frameworks to discover the greatest fit for the company. It’s likely that the managed services provider you choose has a preference for a particular framework or software. They might not be willing to collaborate with your internal team to test new ideas.
- More Expensive
Because managed IT services include both IT tasks and project management, outsourcing your technical operations to an IT firm may be more expensive than staff augmentation.
How to Choose?
The best IT outsourcing option for your company is determined by the requirements. It’s easy to tell which strategy is better at glance because they’re so different from one another. Staff augmentation is a good option for organisations that need a short-term solution and need people to come on board right away to fill gaps for a short period of time.
This strategy is the only way they’ll be able to get the kind of flexibility and at a very affordable rate. Managed services, on the other hand, are better suited to companies who wish to outsource complete projects. This gives them peace of mind because their project will be managed by a dedicated team. It also helps them forecast their IT outsourcing expenditures, allowing businesses to save money in the long run.