IStaff augmentation and managed services are both common outsourcing models. Managed IT services involve outsourcing entire projects or functions to a third-party provider. In contrast, staff augmentation involves hiring part-term or contractual staff to fill specific roles. So, the choice between staff augmentation vs. managed services largely depends on your needs.
“Any form of IT outsourcing will help you optimize internal processes and reduce costs – but only if your partner (and your chosen outsourcing model) is able to meet your needs.” – Atul Bhagat, President/CEO at BASE Solutions.
A company may choose to use both. However, rarely will one use both within the same department. Speaking specifically about IT, a managed services provider (MSP) will generally have the specialized skills and expertise needed to fill IT roles. No need to augment additional staff.
Yet, knowing the high-level definition may or may not provide all the information you need to decide which one is right for you. The rest of this article will provide you with more information to help you make an informed decision. Please note that the scope of this article will focus on IT functions.
5 Signs That Staff Augmentation is Right For You
1. Rapid Project Scaling
Staff augmentation offers rapid scaling for short-term projects without the need for time associated with hiring full-time employees or signing SLAs. If you need to meet a tight deadline suddenly, staff augmentation can offer a fast fix.
2. Temporary Needs
Augmenting your existing team is usually the best option if you only need additional help temporarily. For example, you can bring in contractors during a major software development project or during a peak season.
3. Retained Control
Augmented staff are effectively at the same level as your full-time staff. Comparatively, everyone who works for an MSP works for the MSP. So, if you would rather maintain that granular level of control over your skilled professionals, staff augmentation may be for you.
4. Lower Administrative Burden
Staff augmentation minimizes the administrative burden of hiring and onboarding new employees or managing long-term contracts. Therefore, you can reap the benefits of additional talent without consuming too much admin time.
5. Minimal Change Management
Fully outsourcing certain functions to a third-party does take some adjustments. By comparison, staff augmentation isn’t much different than hiring a new employee from your team’s perspective. There is less need for role reorganization or frequent change management.
| Dig Deeper Into The Specific Benefits of Managed IT Services How to Choose a Managed IT Services ProviderHow to Avoid Managed IT Service ChallengesCommon IT Problems in Business & How You Can Solve Them |
5 Signs That Managed IT Services Are Right For You
1. Cost-Effectiveness
Staff augmentation may seem more cost-effective at first glance. However, the average cost of hiring an augmented staff member is $25-$49 per hour in the USA. While it’s less time-intensive than new hires, it isn’t any less expensive. These costs can add up if you need to fill many roles.
Comparatively, managed services offer a single flat subscription rate for all services. Instead of paying for each professional individually, you pay for all the help you need in one predictable fee.
2. Less Turnover Risk
Like any other employee, contracted staff can choose to leave on their own accord. If that happens, your business will be left with the same skill gaps you had before. When you choose the managed services model, you’ll always have the MSP at your side. Even if one of their experts leaves, you’ll still have access to others who can do the needed work.
3. Less Network Downtime
CloudSecureTech notes that IT downtime can cost $5,600 per minute. By the time your staff starts complaining about network downtime, you’re already losing money. Part of the purpose of managed services is to reduce downtime. Proactive IT monitoring and management is used to identify and resolve issues before they impact your business.
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4. Improved Focus on Core Business Tasks
Managed IT allows your internal team to focus on strategic business initiatives rather than daily IT tasks. While augmented staff can lend a hand, managed IT takes the task off your employees’ schedules altogether. Having this additional time is why working with an MSP can increase an organization’s operational efficiency by 60%.
5. Access to Latest Technology
Managed service providers keep your business updated with the latest technology and industry best practices. Augmented staff can offer their ideas, but they are generally confined to what your business can afford in-house. Comparatively, an MSP will own the technology and share it with your business for your usage.
Staff Augmentation vs. Managed Services in a Nutshell
| Staff Augmentation | Managed Services | |
| Definition | Temporary addition of external experts to your team. | Outsourcing management of specific services or functions. |
| Control | Full control over augmented staff. | Provider handles service management and delivery. |
| Cost Structure | Variable; based on hours worked or project duration. | Predictable; often a fixed monthly fee. |
| Focus | Enhances internal capabilities for specific projects. | Allows internal teams to focus on core business activities. |
| Expertise Access | Quick access to specialized skills and knowledge. | Leverages provider’s extensive expertise and resources. |
| Risk Management | Business retains responsibility for outcomes. | Provider assumes responsibility for service delivery and risks. |
| Integration | Augmented staff integrates into existing workflows. | Provider operates independently, with defined interfaces. |
| Time to Value | Immediate impact. | Value realized over time through improved efficiency and reliability. |
Find The Skilled Professionals You Need to Drive Your Business Forward
Choosing the right outsourcing model to fit your needs is an important step towards increasing your efficiency. However, if your partner refuses to listen to your needs, you won’t gain the full benefits of the service.
BASE Solutions is focused on providing a high-touch managed IT service that ensures you have the skilled experts to drive your business forward.
Reach out today to get started.
