IT Staff Augmentation vs. Managed Services – What to Choose?
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Difference Between Staff Augmentation and Managed Services
When your business needs help with your technology, fully managed IT services and staff augmentation are two choices for outsourced IT support.
The main difference between staff augmentation and managed services is that staff augmentation provides additional resources to an organization, while managed services include the management of those resources.
Businesses that want to outsource the management of their new employees may find managed services a good choice. This can be useful for companies that lack the time or resources to manage their new team internally.
It's important to consider your requirements and objectives when selecting whether staff augmentation or managed services is best for your business. The best choice, for instance, would be IT staff augmentation if you require extra employees to finish particular projects or activities. On the other hand, managed services can be a better option if you need someone to manage your new workforce.
The table below shows the major differences between staff augmentation and managed services:
Factors | Staff Augmentation | Managed Services |
Best for | Projects that require extra support for a short period of time and lower cost | Outsourcing entire projects for the long term with costs savings over a period of time |
Contribution | The service provider provides defined resources at a price | The service provider assumes control of all or part of your IT service component |
Pricing | Pricing depends on the availability and hours worked | Pricing depends on service levels and outcome |
Processes | Committed to giving an input | Committed to delivering an outcome |
Risk/Management | Client | Service Provider |
Engagement | Full time | Full-time/Part-time |
Commitment | Does not provide service delivery commitments | Service delivery commitments are expressed as “service levels” |
Staff Augmentation
If you run a small-medium enterprise, the best solution would be staff augmentation for your requirements. This is because you don't have to invest in operational expenses. Also, as most augmented professionals work from home or small offices, you might reduce your infrastructure costs. Besides, you could also add or remove professionals as per your needs, ensuring your permanent team members always get paid even during the lean periods of your organization.
Managed Services
Managed services are ideal if you only intend to start a business. If you lack domain expertise, are unsure of how the particular industry works, have no clue about delivery models or staffing, and more, managed services can run the entire operations of your business. You can stop micromanaging your resources and concentrate on the most important things to your company.
Wrapping Up
So, now are you confused about which outsourcing model is best for your business, whether it is staff augmentation or managed services?
Managed IT services and staff augmentation are currently the two most popular software development outsourcing models in the market. Each has its advantages, disadvantages & risks. Staff augmentation is definitely the right choice if you require more control and responsibility and have the necessary resources to manage a development team. Otherwise, managed services are the best option if you want to hand off all of the work to a development company.
You know your business type, and you now also see how each model works. Choose the best staff augmentation company or managed services company for business growth. Still confused? Call us today! We can help you.