Staff Augmentation vs. Managed Services: Which One to Choose


With rapid industrial development, companies’ demand for IT outsourcing solutions has significantly increased. In addition to being time-consuming, searching and hiring in-house staff can be costly and inconvenient if you work on time-sensitive projects or prioritize fast growth.

However, IT services and IT staff augmentation can help you here. The effectiveness of the two primary outsourcing models depends on the size and type of your project.

Staff augmentation outsources certain functions and tasks, while the managed services model is used to outsource the problem and its solution to a third-party vendor. The key benefit of staff augmentation is the ability to scale functions rapidly. On the other hand, managed services are more suitable for long-term handling processes such as security and infrastructure. 

You must thoroughly understand and evaluate the two trusted alternatives before making an informed decision to meet the project goals. Here’s what you need to know.

Staff Augmentation Orientation

The need to handle budgetary pressures, headcount requirements and short-term resource constraints led to the development of staff augmentation. It caters to organizational needs such as skills required for short-term and immediate commitments.

These employees hired temporarily are fully integrated into the internal team. A company planning to use this model for project development can benefit from reduced hiring time. The highly-qualified staff comprises the best tech talent in the industry to complete the project.

Some argue that staff augmentation works best for small to medium-sized companies. However, studies demonstrate that both startups and well-established enterprises can save money and boost productivity with IT staff augmentation.

Screening a candidate before hiring for a project

Pros of IT Staff Augmentation

  • Project Control

IT staff augmentation allows you to retain project autonomy and ensures project completion according to your specifications. First, the outsourcing company will assess your needs and screen qualified candidates for the job.  

Once you select the outsourced team members, they will be a part of your company and follow directions according to the project’s parameters.

The service provider often supports you when you sign an agreement with the candidates. They also help these professionals transition into your company by evaluating the relationship for long-term success.

  • Project Completion

IT staff augmentation allows companies to scale their staff based on current demands. The service provider will offer specialized talent for every IT position to help you monitor the project from start to finish. Whether you need an extra hand with coding, fix a software failure, or build a new app, staff augmentation can pair you with the best team members.

  • Increased Output

Hiring new employees significantly increases overhead expenses associated with on-site staff, including hardware, software, additional office space, and more. However, with staff augmentation, your company can work remotely to achieve better results at a lower cost. 

Since companies can outsource IT functions to areas with a lower cost of living, they can save money on development without affecting the product’s quality. Moreover, shifting the workload to outsourced teammates also increases productivity as your employees are no longer required to spend time multitasking.

Interviewing a candidate before hiring

Briefly Understanding Managed Services

Companies can outsource IT processes to another company using managed IT services. The IT company decides to operate within certain parameters and specifications set by the parent company. However, the managed IT service controls the IT management, staffing, and project execution. First, the IT firm and the parent company agree upon the desired outcome or deliverables.

Managed IT services are better for companies that require a specific technical output but don’t have sufficient resources.

Pros of Managed Services

  • Retain Focus on Project

As the managed IT services deliver their project management processes, the parent company can focus more on its services. So while your staff zones in on other operations, the IT company will deal with the development and other technical functions.

  • Save Time

Hiring in-house staff requires time to manage IT projects. To supervise IT functions according to the schedule, project managers will need knowledge of the project. Companies that lack management resources and technical expertise can use IT-managed services – a practical solution that can save you time and money.  

How to Choose Between Staff Augmentation and Managed Services

Following the brief comparison of available options, consider the following factors to make a final decision between staff augmentation and managed services model.

  • Operational scalability vs. project scalability – staff augmentation assists with scaling specific projects, while managed services are beneficial for business growth.
  • Long-term vs. short-term partnership – the staff augmentation provider offers short-term partnership for the project. However, businesses often rely on managed services providers for a longer period.
  • Amount of control – the company manages the process of onboarding and hiring with staff augmentation. Executives handle all aspects of the project while supervising the quality of the work done. With managed services, the partner deals with all the management.

IT staff augmentation ensures the success of a project

If you’re looking to hire reliable and professional staff augmentation services at a reasonable cost, we’re here to help you make your software development project a success with our effective custom software solutions.

At Vates, we offer a diverse range of services, including software development services, testing as a service provider, software testing services, and more. Our dedicated software teams are committed to giving you the best possible custom software solutions based on your needs and requirements. For more information about our services, feel free to reach out to us or schedule a 30-minute meeting.

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