Any business’s success depends on its ability to leverage the right resources and technology to meet its goals. Choosing the right staffing strategy can be the defining factor between staying ahead of the competition and falling behind.
Two popular strategies for obtaining the resources needed for business growth are staff augmentation and managed services. In this article, we’ll compare staff augmentation vs. managed services and explore their differences so that you can make an informed decision.
What Is the Staff Augmentation Model?
The staff augmentation model is a business strategy in which a company hires a staff augmentation company instead of investing in full-time employees to supplement its workforce. The staff augmentation company is responsible for sourcing and managing the personnel and ensuring they have the qualifications to meet the client’s needs.
The advantages of staff augmentation
Access to specialized skills
Staff augmentation gives businesses access to specialized skills and expertise in core technical concepts that their in-house employees may not have.
Increased productivity
Bringing in qualified and experienced individuals to complete specific tasks helps businesses increase their productivity levels and produce better results.
Scalability & flexibility
The IT staff augmentation model allows businesses to scale resources up or down depending on the project’s requirements without making a long-term commitment to additional staff.
Cost savings
Staff augmentation eliminates the need to hire and manage a full-time employee, saving businesses time and money.
Potential challenges with staff augmentation
Poor communication
Poor communication may lead to misunderstandings, misalignment, reduced team cohesion, and inefficient knowledge transfer.
Clearly define the scope of work from the start to avoid miscommunication and misunderstandings.
Lack of trust
Without trust, team members may be reluctant to work together and unable to collaborate effectively, leading to delays, low morale, and an overall decrease in productivity.
Take the time to build a good relationship with the external team to ensure that all parties have the same goals and objectives.
Hidden costs
Hidden costs can be a potential challenge because, if not taken into account from the start, they can cause delays in the project timeline.
Plan ahead for additional costs and always communicate with your staff augmentation provider to ensure the prices are transparent and agreed upon.
Poor quality of work
Poor quality of work can lead to project delays and increased costs, causing frustration and dissatisfaction.
Not all staff-augmentation companies can guarantee a network of experienced professionals, so it is essential to do your research.
WillDom, for example, has a network of highly skilled professionals who will ensure that your project is completed quickly, efficiently, and to the highest quality standard.
When is staff augmentation the best choice?
Staff augmentation is the best choice when the team is expected to hit the ground running. The staff augmentation model allows flexibility, as staff members can be increased or decreased when needed.
What Is the Managed Services Model?
The Managed Services model is a form of technology services delivery where an IT service provider delivers and manages certain IT services for a customer continuously. The IT service provider is responsible for installing, maintaining, and managing the IT services.
The advantages of managed services
Improved communication
With managed services, the customer can have direct access to the vendor and receive regular updates on the project’s progress, allowing for better collaboration and communication.
Increased security
Managed services provide a comprehensive security architecture to protect your data and systems from malicious attacks.
Increased reliability
Managed services provide a thorough monitoring service to detect and address any issues before they occur and keep the IT services running.
Reduced complexity
A managed services company takes the complexity out of IT operations, allowing you to focus on your core business.
Potential challenges with managed services
Downtime
Downtime can result in disruption of services, loss of data, and decreased productivity because you do not have access to the resources or tools required to do the job.
Ensure your managed service provider has a reliable and up-to-date infrastructure, including regularly scheduled maintenance and testing of their systems and hardware.
High-costs
Managed services can be expensive, depending on the services required and the provider you choose. This can significantly impact a business’s budget, especially if there are unexpected costs.
Always read the fine print of the managed services agreement and ask your provider for a detailed breakdown of all fees and associated costs.
Poor customer service
The quality of customer service provided by managed service providers can vary greatly, and poor customer service can lead to frustration and dissatisfaction with the services being provided.
Research the managed service provider’s customer service history and inquire about their response times and availability.
Incompatible services
Different managed service providers can offer various services, some of which may be incompatible with your existing systems and processes.
Before signing, consult with your managed services provider to ensure their services are compatible with your company’s existing IT infrastructure.
When are managed services the best choice?
The managed service model includes proactive monitoring and system maintenance, making it ideal for long-term projects that require ongoing support. It also provides users with access to expert technical support and guidance, which can be invaluable for complex projects.
What Is the Difference Between Staff Augmentation and Managed Services?
The primary difference between staff augmentation and managed services is that with managed services, the managed service providers are responsible for the entire project, from start to finish. With staff augmentation, the client still administers the project, and the service providers provide the extra resources and expertise to help the project progress.
Which one is right for my business?
Staff augmentation is likely better if your project requires more resources and expertise than you have in-house. However, if you don’t have the time or resources to manage the project, you can focus on other tasks while managed services provide the additional knowledge, resources, and support needed to complete the project.
Factors to consider when choosing between staff augmentation and managed services
When deciding between staff augmentation vs. managed services, short-term and long-term factors must be considered. Ultimately, the decision should be based on the specific needs of the organization, so here are some questions to help guide the decision-making process:
Short term
- Business objectives and IT needs: What are my business objectives? What IT needs do I have to meet my business objectives? How quickly do I need to meet these objectives?
- Internal resources and expertise: What resources and expertise already exist in the in-house team? Are my current resources and expertise sufficient to handle the project? How quickly can I acquire an outsourced team with the expertise needed?
- Budget and cost considerations: What is my total budget for the project? What are the costs associated with a staff augmentation company and managed service provider? Which option is more cost-effective for my business?
- Control and flexibility requirements: How much control do I need over the project? How much flexibility do I need for changes to the project? What level of control and flexibility do such services offer?
Long term
- Balancing in-house and outsourced resources: How much of the project should I outsource? What are the benefits and drawbacks of outsourcing specific tasks? What resources and expertise do I need to keep in-house?
- Adapting to changing industry trends and technologies: What technologies are necessary for my business to stay competitive? How can staff augmentation and managed services help me keep up with changing industry trends? What is the best way to ensure access to the latest technologies?
- Talent acquisition and retention strategies: What is the best way to find and retain the right talent? How can staff augmentation and managed services help me find and retain talent? How can I ensure the talent I hire is up-to-date on industry trends?
- Developing a sustainable and scalable IT infrastructure: What IT infrastructure do I need to support my current and future business objectives? How can staff augmentation and managed services help me build a sustainable and scalable IT infrastructure? What is the best way to ensure my IT infrastructure is secure and reliable?
Staff augmentation real-life case studies
WillDom is a leading staff augmentation company that has helped businesses worldwide achieve their goals by providing highly skilled and experienced professionals to supplement their in-house team.
The following are some of WillDom‘s staff augmentation case studies, demonstrating how companies used this strategy to improve their operations and become more competitive.
WillDom’s success story with staff augmentation in the cloud management industry
WillDom’s Cloud specialized developers provided their services to help a leading spa management software and online scheduling system expand from Canada to US markets, arrive in Europe and Africa, and add new functionalities to their platform.
By building a new reservation setter, integrating payment methods, and developing a CRM for spas, WillDom’s web developers helped the company improve its customer experience and digital transformation.
The team used a variety of technologies, such as ASP.NET Web Forms, .Net, MongoDB, SQL Server, AWS, and Amazon S3, to complete the project. After four years of fruitful collaboration, the customer expanded their reach and improved their services.
WillDom’s success story with staff augmentation in the media and entertainment industry
WillDom provided two Senior Full-Stack Developers to join an eight-person team on a project for a free, advertiser-supported video-on-demand platform.
The project involved transitioning from custom-based development to a cutting-edge framework. The team worked on video-on-demand, front and back-end development, analytics, and architecture redesign.
The technologies used in the project included React, TypeScript, JavaScript, Redux-thunk and Redux-saga, CSS, and HTML. Thanks to WillDom, the customer could transition smoothly to their new platform while avoiding disruption to their regular operations.
Can Staff Augmentation and Managed Services Be Combined?
Yes, staff augmentation and managed services can be combined. To do this, the service provider first provides the additional resources and expertise needed to complete the project through staff augmentation. Then, the service provider takes on the role of project manager to ensure that the project is completed on time and within budget.
The Future of IT
The future of IT is something to be excited about, as it brings with it the potential for greater efficiency, productivity, and innovation.
Impact of emerging technologies on staff augmentation and managed services
Emerging technologies such as artificial intelligence, machine learning, and cloud computing are having a significant impact on staff augmentation and managed services:
- AI and machine learning are enabling organizations to automate processes, reducing the need for manual labor.
- Cloud computing allows organizations to access and store data more efficiently, enabling them to quickly access and analyze the data they need to make informed decisions.
- Virtual and augmented reality allows service providers and companies to simulate real-world scenarios, providing a more realistic and cost-effective way to train employees.
The growing importance of remote work and the gig economy
The rise of the gig economy is transforming the way work is done. Remote work is becoming increasingly popular, allowing permanent employees and professionals with a service-level agreement to work from wherever they choose. This has enabled businesses to access a global pool of talent and resources, providing access to skills that may not be available locally.
In addition, the gig economy provides more flexibility and autonomy to individuals, allowing them to create their schedules and pursue multiple income streams. This has enabled service providers to take on more projects, creating more opportunities for growth and development.
Staying ahead of the curve and adapting to the changing IT landscape
The pace of technological innovation is accelerating faster than ever before, with new tools and capabilities being developed every day. With these advancements come powerful opportunities to create innovative solutions, optimize processes, and improve customer experiences.
Organizations must be proactive to stay ahead of the curve and adapt to the changing IT landscape. Staying up-to-date on the latest technologies and trends is essential to staying competitive. Investing in emerging technologies and automating processes will help organizations stay ahead of the competition.
Making the Right Choice – Let WillDom Help!
Choosing between staff augmentation and managed services can be daunting, as both have advantages and disadvantages. At WillDom, we can help you make an informed decision by providing access to expert advice, a comprehensive overview of the options available, and customized solutions tailored to meet your unique needs. Contact WillDom today or on our LinkedIn to find the optimal staffing solution for your project!