staff augmentation vs managed services model

The limited job market can stifle your project’s progress. With that in mind, many companies seek partnerships with nearshore and offshore companies that let them bring in the technological expertise they may lack on site. In this journey, companies rely on a variety of business-to-business models that facilitate cooperation with external IT services providers, IT team augmentation and managed services being the two most common ones staff augmentation vs managed services model.

This message was edited 1 time. Last update was at 15/03/2023 13:39:28

Staff augmentation is a cooperation model where a company expands its in-house staff by temporarily hiring one or several outsourcing IT specialists. Augmented specialists become a part of an in-house team and cooperate with the company's employees for a short time as usual. I advise you to read the guide about staff augmentation.

Staff augmentation and managed services are two different business models that companies can use to work with external IT services providers. Both models allow companies to access additional technological expertise and resources, but they differ in their approach to managing and delivering IT services.

Staff Augmentation Model:
In the staff augmentation model, an external IT services https://tech-stack.com/services provider provides additional IT staff to work alongside the company's existing team. The external staff work as an extension of the in-house team and under the company's management and direction. This model is ideal for companies that need additional resources or expertise for a specific project or period.

Managed Services Model:
In the managed services model, an external IT services provider is responsible for managing and delivering specific IT services or functions. The external provider takes full responsibility for the services provided, including the management, monitoring, and maintenance of IT systems. This model is ideal for companies that want to outsource their IT functions and have the external provider take full responsibility for the services delivered.

Key Differences:

Control: In staff augmentation, the company retains control over the project and the team's management, while in managed services, the external provider has full responsibility for managing the service.

Expertise: Staff augmentation provides additional resources and expertise to the company's existing team, while managed services provide specialized expertise in specific IT services.

Flexibility: Staff augmentation is more flexible as the external staff work under the company's direction and can be adjusted based on the project's requirements. Managed services have a fixed scope of work and service level agreements (SLAs).

Cost: Staff augmentation is typically less expensive than managed services, as the company is only paying for additional resources and not the full management of the service.

Ultimately, the choice between staff augmentation and managed services depends on the company's needs and goals. Staff augmentation is ideal for companies that want additional resources and expertise for a specific project, while managed services are ideal for companies that want to outsource and delegate IT functions to external providers.