When digital transformation takes seven miles across the planet, businesses, regardless of their profile, develop digital products, applications, websites, and even software. But what if the company cannot maintain a permanent IT department, or there is, but it does not have enough resources for all projects? Then you have two pills to choose from, Neo: Staff augmentation (out-tasking) and managed IT services (outsourcing).
Imagine your company has the challenge of launching a new software development product in the near future. Even though there is an incredible and hardworking IT team, you understand that you still don’t have developers with specific skills for this project. This is the finest hour to try staff augmentation.
A staff augmentation (SA) definition is an out-tasking model that refers to hiring additional employees for a project. It is an effective way to improve the efficiency of your development team. It can be used to augment the capacity of your team or reduce your workforce. Staff augmentation contract is a short-term solution only for the project’s implementation period.
SA has some significant advantages and disadvantages.
Pros & Cons
- With the addition of skills, your team’s productivity increases and helps avoid missing out on essential skills. This is how you save your money and help to strengthen your team.
- While the "temporary" employees are working on the project, the rest of the team can carry out their daily tasks without losing quality and time.
- When your software project needs expertise, in-house staff augmentation can help minimize the time and effort required to complete the project.
- Staff augmentation helps minimize managerial issues by allowing you to work with a smaller staff.
- Permanent staff members are more likely to accept supplemental workers, as they will feel that their jobs are safe.
- Staff augmentation can help you meet strict deadlines.
- Not only should you train your staff members on the company's internal processes, but also on how to handle them efficiently.
- Onboarding new team members usually require additional time and resources from the established team. This is because you don't have the resources needed to supervise their work.
- While new team members may get used to the company's processes and procedures, they may still not work efficiently.
- It is ideally suited only for short-term support. There is a chance that augmented employees will leave the project before it's over, and you will have to start the hiring process again every time someone leaves.
What are Managed Services?
While many organizations consider hiring temporary staff to handle specific tasks or services, managed services clients look beyond the initial savings and expectations to gain the long-term benefits of a solutions partner.
A managed IT service (MS) is a model that hired company provides end-to-end technology services to help organizations keep their systems running smoothly.
Types of MS:
- Networking and Infrastructure: network task and storage options
- Security management: backups and anti-malware solutions
- Communication services: monitoring and managing communication apps, data, video, even calls for some instances
- Software service: offers platforms for businesses as antivirus software of MS Office apps
- Data analytics: helps businesses identify and analyze key performance indicators. This type of monitoring service helps identify and analyze business trends
- Support services: covers all IT-related help from solving small tasks to advanced challenges.
With managed services, you will be free from the tasks that usually require manual work. You will be able to focus on the right people and resources while keeping your strategic initiatives on track.
Getting the right MSP can be challenging, especially if you don’t know what to look for in terms of experience and expertise. However, it can be worth it if you do it correctly.
As the coin has two sides, so this model has its light and dark sides.
Pros & Cons
Pros of MS model:
- The managed services delivery model is a cost-effective and time-saving method for businesses. It allows you to hire a team of experienced developers and technicians who can provide all the necessary resources and equipment for your project.
- Availing a service provider is essential in ensuring that the project gets completed on time and within budget. It can be easily done with the help of experienced and reliable contractors.
- The vendor monitors the project from start to finish, takes care of the tools and resources necessary for the successful execution.
- MS companies calculate all the risks and prepare all stages of the project.
- It is not always possible to get everything that you need for a low price. Some tools and resources require higher fees.
- Since the company providing managed IT services work remotely, the solutions and problems that need to be solved here and now will have to be do it yourself.
- Remember that you work with a third-party service provider, and you give access to your company's confidential data. It is imperative to pay attention to the terms of the non-disclosure contract to avoid unnecessary risks.
Well, all the cards are revealed. And you definitely know what is the difference between staff augmentation and managed services.But there are still doubts, what to choose? Let's move on then to the criteria that will help determine what is more suitable.
Staff augmentation vs. Managed services: What to choose
So, which outsourcing model should you choose for your business? Take a deep breath and evaluate your project soberly. Then ask yourself 3 helpful questions to find the correct answer.
1. Do you need a solution within the project's scope or for the entire company and future work?
Two models offer options to suit different needs. Staff IT augmentation expands the staff and helps cover the need for an additional pair of hands to launch a project. Managed It services play a significant role in managing processes as your business grows. It makes it easier to work with large volumes of tasks and information and increases the productivity and efficiency of the company.
2. What do you need - short-term or long-term partnership?
Staff augmentation contract works by filling gaps in your organization by hiring the right talent at the right time. Managed service provides good results over a more extended period of time. After all, it includes consultations, analytics of business growth factors, and the implementation of business ideas.
3. Which amount of control do you expect to maintain?
When you hire a new employee to a team, you are responsible for ensuring that he adapts smoothly and performs specific tasks. You can control all stages of development and check the quality of work. In other words, you invite "into the family" and cohabit together in the illness and health of the project. But in the case of an MS, you just bring it up to date, describe the tasks and details, and then step aside. All management of the assigned tasks is on the shoulders of the hired company.
When business needs are growing, and it is necessary to distribute tasks for which there are not enough human resources and capabilities. There is always a choice - Staff augmentation or Managed Services. These are two models that meet different needs. Therefore, the decision should be based on clear ideas about what are and what for they work. And, now you know about everything. Congratulations, you are the Chosen One. So which pill do you choose now?