Software Development

Managed Services Vs Staff Augmentation

8
 min read
Published 
June 21, 2023
Updated  
June 17, 2024
8
 min read
Published 
June 21, 2023
Managed Services Vs Staff Augmentation
8
 min read
Published 
June 21, 2023

Managed services and staff augmentation are two popular models for outsourcing IT work. Both approaches have their own advantages and disadvantages, and the choice between the two depends on the specific needs of a business. In this blog post, we will explore the difference between staff augmentation and managed services.

What is Managed IT Services?

Managed services refer to a model where a third-party service provider takes responsibility for the management and maintenance of a company's IT infrastructure. In this model, the service provider assumes responsibility for ensuring that the infrastructure is up and running, and that any problems are resolved in a timely manner. This includes proactive maintenance, 24/7 monitoring, and the use of advanced tools and techniques to identify and resolve issues before they can cause downtime or other problems.

Benefits of Managed Services

Predictable Costs

With managed services, companies pay a fixed monthly fee for access to a range of IT services. This makes it easy to budget for IT expenses and avoids unexpected costs.

Expertise

Managed service providers have a team of highly trained and experienced IT professionals who can provide expert support and advice on a wide range of IT issues.

Focus on Core Business

By outsourcing IT management to a managed service provider, companies can focus on their core business activities without worrying about the day-to-day management of IT infrastructure.

Challenges of Managed IT Services

Lack of Control

One of the main challenges of managed IT services is the perceived lack of control. When a business outsources its IT needs to a managed service provider (MSP), it may feel like it is losing control over its technology infrastructure. This can lead to concerns about security and data privacy. To address this challenge, it is important for businesses to choose an MSP that offers transparent communication and a clear understanding of the business's IT needs.

Compatibility Issues

Another challenge of managed IT services is compatibility issues. Businesses often have a mix of legacy and modern systems, and it can be difficult to integrate these systems with new managed services. To address this challenge, it is important for MSPs to offer a thorough assessment of a business's existing IT infrastructure and provide solutions that are tailored to the business's specific needs.

What is Staff Augmentation?

Staff augmentation, on the other hand, refers to a model where a company hires IT professionals on a temporary or project basis. In this model, the IT professionals work directly for the company, but are not permanent employees. They may be hired for a specific project or to fill a skills gap within the company's existing IT team.

Benefits of Staff Augmentation

Control

With staff augmentation, companies have greater control over the IT work that is being done. They can choose the specific professionals that they want to work with and can provide direction and guidance on the work that needs to be done and specific products.

Flexibility

Staff augmentation provides flexibility in terms of the number of professionals that are required and the length of time that they are needed. This allows companies to scale up or down as needed to meet the demands of specific projects.

Cost Savings

Staff augmentation can be a cost-effective way to get the IT skills that a company needs without the overhead costs of hiring permanent employees.

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Challenges of Staff Augmentation

Finding the right talent

One of the biggest challenges of staff augmentation is finding the right talent. You need to ensure that the candidates have the required skills, experience, and cultural fit. This can be time-consuming and requires a thorough screening process.

Communication and collaboration

When you bring in staff augmentation resources, they may not be familiar with your company's culture, processes, and communication channels. This can lead to communication gaps and a lack of collaboration with your in-house team.

Comparison Table For Manage Services Vs Staff Augmentation

Staff augmentation vs managed services battle is quite fair. Both managed services and staff augmentation are popular IT service models that organizations use to manage their IT needs. However, each model has its own set of functions, advantages and challenges. Here’s a comparison table of the two models:

Managed Services Staff Augmentation
Definition Outsourcing IT operations to a third-party provider Hiring IT professionals on a temporary or long-term basis
Scope Comprehensive IT management and support IT talent recruitment and deployment only
Responsibility Provider responsible for all IT services Client responsible for managing resources
Cost Fixed monthly or yearly fees Hourly or daily rates based on skillset and experience
Scalability Easily scalable to accommodate business growth Limited scalability based on the number of available resources
Flexibility Flexibility to customize services based on needs Less flexible as resources are contracted for specific tasks
Expertise Access to a wide range of IT expertise and experience Limited expertise based on the skillset of hired resources
Risks Provider bears most of the risks associated with IT Client bears most of the risks associated with resource quality
Communication Providers responsible for communication and reporting Client responsible for communication and reporting
Ownership Provider owns and manages the IT infrastructure Client owns and manages the IT infrastructure

Overall, managed services offer a more comprehensive solution to IT management while staff augmentation provides more flexibility and control over IT resources. Organizations should carefully consider their IT needs and goals before deciding which model is best suited for their requirements.

Conclusion

Staff augmentation and managed services are both viable models for outsourcing IT work. The choice between the two depends on the specific needs of a business. If a company is looking for a comprehensive IT solution with predictable costs and expert support, managed services may be the best choice. On the other hand, if a company needs more control over the work that is being done, and the ability to scale up or down quickly, staff augmentation may be the way to go. Ultimately, the decision staff augmentation vs managed services comes down to the specific needs and goals of each individual business.

Axon, an industry-leading software engineering company, offers a compelling alternative to traditional staff augmentation models. By partnering with Axon, organizations gain access to a dedicated team of software engineers who possess extensive domain knowledge and experience in various technological domains.

Axon's approach as a dedicated team fosters a collaborative environment, where their engineers work closely with the client's internal teams to ensure alignment, effective communication, and efficient workflow. Contact us to get a detailed consultation on your project.

FAQ

What is the main difference between managed services and staff augmentation?

Managed services involve outsourcing a complete function or process to an external team responsible for delivery and results. Staff augmentation, on the other hand, means hiring external talent to work under your internal team's direction, usually to fill skill gaps or scale up quickly.

When should a company choose staff augmentation over managed services?

Staff augmentation is ideal when you already have strong internal project management and need short- or long-term help with specific tasks or roles. It gives you more control over daily work and workflows while still accessing external expertise.

What are the risks of using managed services?

With managed services, you rely on an outside provider to deliver outcomes, so there’s a risk of misalignment if expectations aren’t clearly defined. It also means giving up some direct control, which may not suit all teams or projects.

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