Understanding the Pros and Cons: Staff Augmentation vs Managed IT Services

A recent study by Deloitte revealed that over 53% of businesses struggle with finding the right IT services to suit their needs , leading to decreased efficiency and productivity.

In this blog, we will break down the differences between IT-managed services vs staff augmentation in no uncertain terms so that you feel confident choosing the right option for you and your business.

What Is Staff Augmentation?

At its core, staff augmentation is a flexible outsourcing strategy that allows you to hire tech talent globally and manage your augmented team directly.

As the business owner, you have the prerogative to select your team and manage them, while the staffing company handles the administrative and HR tasks.

Advantages of Staff Augmentation

Here’s why you might consider staff augmentation:

  • Flexibility: With staff augmentation, you can quickly scale your team up or down based on your project requirements
  • Cost-effective : Staff augmentation reduces costs associated with hiring, training and maintaining full-time employees

However, there are potential challenges as well.

Disadvantages of Staff Augmentation

  • Management Challenges: While you have complete control over your augmented team, managing remote workers can be complex
  • Cultural Differences: Cultural and language barriers can be an issue with global teams

According to Statista, businesses that adopted staff augmentation saw a 37% increase in project efficiency .

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What Are Managed IT Services?

Managed IT services, on the other hand, are a complete package where you outsource your IT operations to a third-party provider. These services include network management, cybersecurity, data backup and more .

The service provider takes complete responsibility for these operations.

Advantages of Managed IT Services

Benefits of managed IT services include:

  • Comprehensive Solutions: Managed services provide end-to-end solutions for your IT needs
  • Expertise: Managed service providers offer a team of IT professionals with diverse expertise

But as with anything, there are also downsides.

Disadvantages of Managed IT Services

  • Limited Control: With managed services, you might not have the same control over your IT operations as with staff augmentation
  • Contractual Obligations: Managed services often require long-term contracts, limiting flexibility

In a survey by CompTIA, 46% of managed IT service users have cut their annual IT costs by 25% or more .

 

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The Key Differences: Staff Augmentation vs Managed IT Services

Navigating the conundrum of “managed services vs staff augmentation” involves understanding the key differences that distinguish these two models.

Control and Flexibility: Staff augmentation provides direct control over your augmented team, enabling you to fine-tune your operations based on immediate requirements. You can scale up or down as the project needs to evolve.

Comprehensive Solutions and Expertise: Conversely, managed IT services deliver complete IT solutions under one roof. This means your business can access a broad spectrum of services and expertise without the hassle of managing multiple teams. You entrust your IT operations to experts, allowing you to focus on your core business functions.

Business Size Staff Augmentation Benefits Managed IT Services Benefits
Small Flexibility, Low cost Comprehensive solutions, Cost savings
Medium Ability to manage directly, Global talent Diverse expertise, All-in-one IT solutions
Large Scalability, Access to niche skills Streamlined operations, Continuous support

The crux of the matter lies in aligning these models with your business objectives and operational needs. If hands-on control and scalability are paramount to you, staff augmentation might be your preferred choice.

Conversely, managing IT services could be your go-to strategy if you seek diverse expertise and comprehensive solutions without the associated management responsibilities.

Staff Augmentation vs Managed Services

Deciding Between Staff Augmentation vs Managed Services

Choosing between staff augmentation and managed services doesn’t have to be daunting. Lean on a team of IT experts with decades of experience.

Reach out to NetGain for a free consultation . Together, we can diagnose your IT needs and carve out a path that propels your business forward.

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