IT outsourcing has become a familiar term in the last decade. As a business leader, deciding between staff augmentation vs managed services can be a complex decision. Hence, in this article, we will help you to choose the best fit for your upcoming projects.
Understanding Staff Augmentation
Staff augmentation involves adding skilled professionals to your existing team for a specific project or period. It’s like hiring temporary staff, except they bring specialized expertise directly to your organization.
How Staff Augmentation Works
This model allows companies to fill skill gaps without the need for long-term hiring. For example, if your business is facing a tight project deadline, hiring a few developers on a temporary basis can help meet that target. Staff augmentation gives you the flexibility to scale up or down based on project needs, avoiding the costs and commitment of hiring full-time employees.
Understanding Managed Services
On the other hand, managed services involve outsourcing the entire management and delivery of a specific function or set of tasks to a third-party provider. In this model, the service provider takes full responsibility for the performance and outcomes.
How Managed Services Work
With managed services, you partner with a provider who handles a function like IT support, software development, or cybersecurity. This approach allows you to focus on your core business while leveraging the provider’s expertise to manage specific tasks.
Staff Augmentation vs Managed Services
Understanding the differences between staff augmentation vs managed services will help clarify which option is more suitable for your business.
Control vs. Responsibility
With staff augmentation, you retain control over the project and the augmented team. This approach works well if you want to manage tasks closely. In contrast, managed services transfer responsibility for task execution to the service provider. This arrangement allows you to focus on strategic goals instead of operational details.
Cost Considerations
When evaluating cost, staff augmentation can be more flexible for short-term projects since you only pay for the hours worked. Managed services, however, offer predictable pricing through fixed fees. If your project requires ongoing support, a managed service may be more cost-effective in the long run.
Examples to Illustrate
Staff Augmentation Example
An example of staff augmentation is hiring additional software developers to help complete a short-term project. Imagine your company is developing a new mobile app, but your existing development team is too small to meet the tight deadline. Instead of hiring full-time employees, you can bring in several experienced developers on a temporary basis to work alongside your in-house team.
These augmented staff members will integrate into your existing project, work under your company’s management, and follow your processes and guidelines. Once the project is finished, their contracts can end, allowing you to scale down without long-term employment commitments.
In the meantime, you can also read some of our client’s case studies about staff augmentation services on our Clutch here.
Managed Services Example
An example of this approach is outsourcing your company’s IT infrastructure management to a third-party provider. In this scenario, a managed service provider (MSP) would take over responsibilities like monitoring and maintaining servers, managing network security, providing data backup and disaster recovery services, and handling software updates.
Instead of your in-house IT team managing these tasks, the MSP ensures that all systems are running smoothly, secure, and up-to-date. This arrangement allows your company to focus on core business activities while relying on the provider’s expertise for IT support and maintenance.
Which Model is Right for Your Business?
When to Choose Staff Augmentation
Short-Term or Specialized Projects: If your business has a short-term project with a clear deadline, staff augmentation is ideal. It enables you to bring in the necessary skills without committing to long-term contracts. For example, augmenting your team with a UX designer for a three-month project can be more practical than hiring someone permanently.
Desire for In-House Management: Companies that prefer hands-on management will benefit from this approach. You maintain full control over the project, and the augmented staff integrate into your existing processes. This allows for closer supervision and alignment with your company’s goals.
When to Choose Managed Services
Long-Term Partnerships for Ongoing Support: For long-term projects or functions, managed services are often the better choice. If your company lacks the resources to handle certain operations, such as network security or application maintenance, partnering with a managed service provider can fill those gaps seamlessly.
Limited In-House Expertise: Managed services are also suitable if your internal team lacks the skills to handle specific tasks. For example, if your business doesn’t have a dedicated cybersecurity team, hiring a managed service provider to handle security monitoring can ensure that your systems remain secure.
Decision Framework: How to Choose Between Staff Augmentation and Managed Services
To decide whether staff augmentation vs managed services fits your business needs, follow this framework:
Step 1: Assess Your Project’s Scope and Duration
Identify whether your needs are short-term or long-term. Staff augmentation suits short-term projects, while managed services are better for ongoing needs.
Step 2: Evaluate Your In-House Capabilities
If you have an experienced in-house team, staff augmentation may work well. Otherwise, managed services can provide the specialized expertise you need.
Step 3: Consider the Level of Control You Prefer
If you want to maintain control over daily tasks, staff augmentation allows that. However, if reducing management burdens is a priority, managed services are more suitable.
Step 4: Analyze Budget and ROI Expectations
Look at both immediate costs and long-term value. Staff augmentation can be cost-efficient for short bursts, but managed services often bring more value over time through ongoing support.
We have produced a complete guide for staff augmentation, you may check it here. To make the best choice, assess your requirements carefully and consider contacting tech experts for personalized advice.
Additional Resources
Real-world Application of Staff Augmentation
