Staff Augmentation Vs Managed IT Services – Which is best for your IT staffing needs?
Over the next three years, the Global IT Outsourcing Market is expected to grow at a 4.42% compound annual growth rate according to Market Watch and Industry Research. To put this in perspective, between 2015 to 2022, the market is estimated to grow between $314.92 to $481.37 billion.
As IT costs continue to rise, many businesses want to find ways to reduce their IT spending. By keeping their costs down, they can invest more in their core business.
To help companies save on time and money, it is vital that corporations understand the IT Outsourcing industry’s primary models of operations:
- IT Staff Augmentation
- Managed Services
Both having their pros and cons. Therefore, to help businesses choose the model that fits their needs best, we want to share below how the process works along with the advantages of using these models.
IT Staff Augmentation
The best definition for Staff Augmentation is the temporary hiring of a skilled workforce. These skilled workers augment the current staff by lending their experience to specific project requirements.
In this model, you can select qualified candidates from the list provided by the service provider. While you still need to manage these workers, you are not their employer. Instead, you can use them for your specific project needs. That way, you only pay for the time they worked on your projects.
Managed IT Services
In the Managed IT Services model, you outsource your projects to a third party (service provider) who has the expertise and experience to carry out the entire project.
The service provider does everything from structuring a team with their developers to managing all processes. Your firm doesn’t need to have in-house tech expertise or spend time on your remote development team.
You receive regular updates from your account manager detailing the progress on the project. Of the two models, this is more of a hands-off approach to IT outsourcing.
Staff Augmentation VS Managed IT services
|Comparisons||Staff augmentation||Managed Services|
|Team||100% dedicated and skilled team managed by the service provider and approved by Client||The team selected by the client from an existing team of service provider- based on skills|
|infrastructure||Service provider||Service provider|
|Payroll||Service provider||Service provider|
|HR management||Service provider||Service provider|
|Product management||Client||Business requirement– provided by the client
Software requirement- managed by the service provider
|Financial control||Time and material, fixed price, cost +||Cost +|
|Technical control||Service provider||Client can manage project flow|
What’s good in each model!
- Good for projects with tight deadlines
- Cost-effective solution
- Add skilled talent to fill specific roles
- Retains control of the project
- Builds a strong team
- Convenient, subscription-based pricing
- Work is done by skilled experts
- No infrastructure or maintenance cost
- Payment based on SLA and result
- Scalable based on project demands
Still not sure how to fill your IT staffing needs?
The choice between two outsourcing models should be based on a detailed cost-benefit and skills analysis. For example, if your company needs specialized services in the short-term duration that your IT department does not possess, then staff augmentation is probably the best model for your business.
However, if you need help with an on-going project, then consider managed IT services. This model provides a predictable cost model, scalability on demand, and long-term relationship based on knowledge sharing.
Let us help you
At Beyond Key, our expertise lies in a deep bench of experience over a broad range of technology disciplines. We can align your technology with evolving business processes and our IT expertise. We can work with your business regardless of your stage of software deployments, upgrades, and integrations.
Our consultative approach spreads across a broad range of technologies. Take the burden off your team today by contacting us about how we can help with our staff augmentation and managed services. Let us know what your project and skill requirement is, and we will connect with you in less than one business day to consult you with the right model!
Set up a free consultation to find out how we can best serve your needs!