Difference Between Staff Augmentation vs Managed Services

Anam Javaid
CEO Rendream

2023-06-21 . 15 min read

Overview

If you want to choose the best option for the mystical realm of business solutions among the IT Staff Augmentation vs Managed Services, then this blog is for you. We will delve into the depth to understand the difference between managed services and staff augmentation and determine which should be considered for which objective. The digital transformation in every field of business has forced people to make digital products, solutions, apps, and a lot more. Most companies work on their defined and limited objectives (of course, it will give them more scope for success in their field). Such companies usually need more highly professional IT sectors. That’s where there is a need for solutions like IT managed services vs staff augmentation.
Staff Augmentation vs Managed Services is a hot topic for business owners. Companies use these two recruitment models to expand their Staff to handle more projects.
A good amount of research should be done on these two recruitment models, i.e., managed services model vs staff augmentation, before making any decision because this decision can strengthen your team and vice versa. This blog is a comprehensive and to-the-point guide explaining the main differences between staff augmentation vs managed services.

Staff Augmentation: A Bird’s Eye View

In Staff Augmentation, the companies hire external Staff to complete their existing or new projects. This hiring is done based on a contract or the basis of any specific project. By using this model, companies can quickly fill the skill gaps of their team and get experts involved in their projects at any stage of the project. The responsibilities that Augmented Staff can take over include App development, system integration, etc.
IT Staff Augmentation is a cost-effective model. Companies can pay less to augmented Staff as they will do specific tasks/projects.

Pros and Cons of Staff Augmentation

Pros of Staff Augmentation:

Access to specialized skills and expertise.
Increased flexibility in scaling the team as per project needs.
Cost-effectiveness compared to hiring full-time employees.
Faster onboarding and project ramp-up.
Reduced administrative burdens, as the staffing agency handles HR tasks.

Cons of Staff Augmentation:

Potential for communication and coordination challenges.
Dependency on external resources.
Limited control over the augmented Staff’s work environment.
Potential for cultural differences and misalignment.
Higher costs in the long run compared to developing an in-house team.

Pros of Staff Augmentation	Cons of Staff Augmentation
Access to specialized skills and expertise	Potential for communication and coordination challenges
Increased flexibility in scaling the team	Dependency on external resources
Cost-effectiveness compared to hiring full-time employees	Limited control over the augmented staff’s work environment
Faster onboarding and project ramp-up	Potential for cultural differences and misalignment
Reduced administrative burdens	Higher costs in the long run compared to developing an in-house team

Get Our Newsletter

Enter Your Email

Key Points to Consider while choosing Staff Augmentation Model

Skill and Expertise: Evaluate the person’s skills and expertise before final hiring to ensure they benefit your team.
Flexibility: Discuss whether you need a flexible work-nature person for the post or project, as flexibility is crucial in teamwork.
Communication and Coordination: Set proper timing for project updates and workflow to maintain coordination within the team and ensure timely completion of projects.
Cultural Fit: Assess the cultural compatibility of the augmented Staff with your company’s environment to enhance productivity and avoid workplace conflicts.
Cost Effective: Analyze the cost of augmented Staff and assess whether it provides a favorable return on investment.
Confidentiality: Discuss the provider’s data security measures and protocols to ensure your data is secure.

Managed services

“Managed services” is the model that works on the outsourcing method. Companies outsource their tasks or responsibilities to third parties. To explain it, we can take the example of ABC company, which provides some physical products to their customers. But now, as they have digitized their business, they also need to sell their products online. Therefore, ABC needs a complete IT department to manage online sales and platforms.
Instead of making an IT department within the company, using the managed services model, ABC company can outsource all the responsibilities of the IT department.
Pros and Cons of Managed Services

Pros of IT Managed Services:

Access to a team of specialized experts and professionals.
Proactive monitoring and maintenance to prevent issues.
Cost-effectiveness compared to hiring and maintaining an in-house IT team.
Scalability and flexibility to adapt to changing business needs.
Enhanced cybersecurity and data protection measures.

Cons of IT Managed Services:

Dependence on external service providers.
Potential for communication and response time delays.
Limited control over the management and decision-making process.
Concerns about data privacy and security when outsourcing IT services.
Compatibility issues with existing systems or software.

Pros of IT Managed Services	Cons of IT Managed Services
Access to a team of specialized experts and professionals	Dependence on external service providers
Proactive monitoring and maintenance to prevent issues	Potential for communication and response time delays
Cost-effectiveness compared to hiring and maintaining an in-house IT team	Limited control over the management and decision-making process
Scalability and flexibility to adapt to changing business needs	Concerns about data privacy and security when outsourcing IT services
Enhanced cybersecurity and data protection measures	Compatibility issues with existing systems or software

Key Points to Consider while Choosing IT Managed Services Model

Experience: Checking the experience is crucial before outsourcing your task. Read reviews from previous clients and check ratings on different platforms to ensure you hire professionals who meet deadlines and coordinate effectively with other departments.
Cost: Discuss prices clearly before starting any project. Conduct market research on prices before making a deal. Read terms and conditions with legal assistance to identify hidden costs before signing any contracts.
Reliability: Ensure your partner is reliable. Set a schedule for work reports and maintain proper project tracking to avoid delays in task completion and work worry-free on other tasks.

Difference Between Staff Augmentation Vs Managed Services

Knowing the difference between staff augmentation vs managed services will make it easier for the companies to decide which model they should choose. Hence, let’s quickly staff augmentation vs compare managed service to determine which model stands out in this battle for the best.

Features	Staff Augmentation	Managed Services
Cost-Effective Vs Targeted Results	Known to be more cost-effective. One-time or project-based hiring, no need for incentives or pay rate increases.	Famous for targeted results, achieved when the entire department works toward the goal.
Self-Rule Vs Discretion	Parent company has more control over the hired person.	Hired department works using its strategies, directional authorities with the partner and parent company.
Flexibility and Accountability	More flexible, coordinates with the existing team.	More accountable for results and outcomes.
Short Term Vs Long Term	Short-term hiring, project-based, relationship hibernates between projects.	Long-term strategic partnership, focused on seamless innovation and IT excellence.

Conclusion

In conclusion, the choice between staff augmentation vs managed services ultimately depends on your organization’s unique needs and objectives. Whether you seek agility and control through staff augmentation, comprehensive solutions, and expert support through managed services, both offer valuable strategies to address resource requirements and drive business success. It’s essential to evaluate your specific circumstances and align them with the benefits and considerations of each model to make an informed decision that best suits your organization’s growth and long-term goals. In a nutshell, in deciding whether the augmented Staff is good for you or managed services, the specific needs of the company or organization play a significant role. If you are looking for a short-term and cost-effective method, then IT Staff Augmentation is good for you. But on the other hand, if you are looking for long-term, reliable, and targeted results, outsourcing, i.e., managed services model, is good to go.

Get Staff Augmentation and IT Managed Services from Rendream

Are you searching for personalized and professional IT-managed services or IT staff augmentation? Look no further than Rendream, where innovation meets excellence. With a team of specialized experts, we offer tailored solutions that cater to your unique business needs. From seamless IT management to augmenting your workforce with top talent, we are your trusted partner in achieving success. Contact Rendream today and unlock the power of customized IT solutions. Let us take your business to new heights while you focus on what you do best. Experience the Rendream difference – where expertise meets passion. You can also get insights on Staff augmentation vs consulting from Rendream.

FAQS

01

IT Staffing is hiring a person on a short-term basis. Managed Services outsource your task to another partner.

02

Both models differ depending on factors like scope of responsibility, authority, accountability, etc. Managed service is more accountable and feasible for the long term, while staff augmentation is less costly and short-term.

03

Factors to be considered are accountability, the scope of responsibility, authority, flexibility, and skills.

04

Staff Augmentation is less costly, as it holds less responsibility and it is need-based. Managed services cost more because the partner gives the services of a complete department, holding more accountability.

05

In Staff Augmentation, the parent company holds more control. But the Parent company holds less control in managed services, and the partner holds more control.

06

Staff augmentation is ideal when you have specific short-term needs, require specialized expertise, or want more control and flexibility over the resources. Managed services benefit long-term engagements when you need a comprehensive solution or prefer to offload specific tasks to a trusted provider.

07

Staff augmentation allows you to quickly scale your workforce, access specialized skills, and maintain direct control over the resources. It provides agility and cost-effectiveness, enabling you to respond efficiently to changing demands and avoid the overhead of hiring and training full-time employees.

08

You can switch between staff augmentation and managed services based on your evolving needs. As your requirements change, you can seamlessly transition from one model to another. It’s essential to evaluate the scope, duration and desired level of control for each engagement to determine the most suitable approach for your organization.

09

No, staff augmentation vs managed services are not overlapping terms. They represent distinct approaches to addressing resource needs in organizations. Staff augmentation involves adding external resources to supplement your existing team. In contrast, managed services involve outsourcing specific functions or processes to a third-party provider who assumes full responsibility for delivering the service. While managed service vs staff augmentation both approaches offer solutions for addressing resource gaps, they differ in duration, control, and level of responsibility assigned to the external provider.

10

Latest BLOGS

The Art of Startup Due Diligence – Road-map to Success

“Book local doctors who take your insurance,” with this app concept, ZocDoc – a leading doctor appointment app in...

Beantsingh Duggal in Mobile

Aug 22 · 13 min read ★

Difference Between Staff Augmentation vs Managed Services

Overview