A commonly spoken about topic in the business community is the debate between managed services and staff augmentation. Both are methods of solving the same issues that your business may be faced with; however, their approaches vary completely. This article will act as your guide in deciding between managed services and staff augmentation as we underline the main differences between the two IT models.
Managed IT Services
Managed IT Services is the process of outsourcing your business’s IT management in an overall effort to make your business operations more efficient. A managed service provider, commonly referred to as an MSP, is a full-time replacement for a typical IT team that a company would commonly have in their staff.
Benefits of Managed IT
They offer a large skill set - Managed IT service companies often have a sizable and qualified staff on the payroll in comparison to the staff augmentation option. These staff bring with them the knowledge and skills that are needed to meet the customer’s needs.
Affordability - Managed IT service providers often have a “tie pricing model” which means that should the cost of your needs either increase or decrease, the price that IT charges should match these changes.
A guaranteed outcome - When using a Managed IT service, a service level agreement should be signed, outlining pricing and timeline conditions, ensuring that the job will be completed to the standard that you have agreed upon.
Drawbacks of Managed IT
Pricing methodology - It is common that a managed IT firm will charge your company for a job on an hourly basis. Given the nature of a business deal such as this, there is always a chance that unexpected costs are incurred.
Business Objectives - With managed IT, there is always a chance of finding that an IT provider’s business goals may be misaligned with your own. Obviously, it is a priority to find an MSP whose goals are aligned with your own.
Staff Augmentation Services
A Business Process Outsourcing strategy that allows your company to hire IT operators from across the globe, seamlessly integrating the IT into your personal team. The additions are commonly temporary staff which will help your in-house staff meet their skill requirements to meet your company’s business ambitions.
Benefits of Staff Augmentation
Adaptability to your needs - Staff augmentation gives your company access to any particular skill set that your current project requires. The benefits of this level of flexibility cannot be understated.
Affordable pricing - Should your company not currently find itself in a position to hire a permanent staff member, staff augmentation gives your company the ability to add to your staff list without the commitment of hiring a full-time addition.
Drawbacks of Staff Augmentation
Affordable pricing may be redundant - Oftentimes, staff augmentation brings with it a higher cost of labor as your company may find itself paying for overhead costs such as management supervision over the augmented staff.
Service level agreements - This employment model does not include service level agreements other than the agreed-upon working hours, giving the remote staff the ability to create unnecessary work for themselves. A level of trust must be developed for this model to work effectively.
Hopefully, this article has provided some insight into whether your company should side with managed services or staff augmentation business processes. Both are completely viable options, each being accompanied by its own unique list of benefits and drawbacks.
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