More and more companies are continually looking for solutions for their dynamic and ever-evolving challenges. Technology is extremely growing and the need to adapt has never been this urgent.
The Covid-19 pandemic also has not made things easier for businesses: the pandemic disrupted the work environment leaving a majority of businesses understaffed in most departments including the IT department.
With this disruption, companies face a major conundrum on how to recruit and sustain a workforce that will keep the company viable and sustainable.
When it comes to staff outsourcing, two primary outsourcing models are at play. This article discusses staff augmentation vs. managed services and which one best suits you. Keep on reading to find out your best option.
Staff augmentation is an outsourcing method in which you temporarily acquire the services of skilled specialists for a certain period. The outsourced experts work with your in-house team to deliver the project at hand.
Rather than using all your time and energy in hiring permanent employees, this method allows you to hire skilled professionals for a particular task for a defined period.
The main point of staff augmentation is to supplement your in-house team with skills and expertise that might be lacking within the team. The outsourced professionals are readily available and only serve for a specified time.
Here are some of the benefits of using staff augmentation for your business:
Staff augmentation saves you time. Rather than advertising, recruiting, interviewing and onboarding a staff member, you get to shorten the hiring process by using an established expert who is readily available. This is particularly important during an urgent task that requires immediate attention.
Hiring additional staff permanently adds to your expenses and overhead costs such as extra office space, hardware, software, and many more.
Staff augmentation helps you to acquire the services of professionals without necessarily taking a huge dent in your pockets. You hire professionals on a need basis.
This model allows you to remain in control over the results of the project and every key element of the whole process. You are essentially on top of things. You still are the boss.
You oversee the whole project and only relinquish control over the development and technical processes. This ensures efficiency and lowers the chances of delivering a substandard result.
Drawbacks of staff augmentation
Here are some of the drawbacks of using staff augmentation:
Here are the cases in which staff augmentation is appropriate and most effective:
This model involves fully outsourcing specific business operations from another provider. This model is normally used for software development and IT operations in which businesses outsource all the technical know-how from a managed services provider.
In this model, you relinquish and transfer control to the outsourced team, therefore, improving operational efficiency. You in turn get to focus on your core business and other non-technical aspects of your business.
There are many benefits of using this managed services model to grow your business. Here are just a few of them:
Managed services are a good model for business growth. However, there are a few drawbacks to this model. Here are some of them:
Managed services model is very effective and can lead to massive business growth when properly undertaken. This model is fit in the following scenarios:
Both models have a massive impact on the growth of your business. However, there is a slight difference in staff augmentation vs. managed services. Being cognizant of the differences will help you decide and adopt the right model for your business.
Staff Augmentation blends the outsourced experts with the in-house team to complete the task. You are essentially in control of the project and can supervise and determine the outcome of the project. This model is also appropriate for a short-term project.
Managed services model on the other hand is suitable for a relatively long period but might be economically unfeasible for a long time.
Managed services model allows you to hand over control of certain business processes to a team of experts with the skills and expertise to deliver the project. The new team of experts handles the project to completion with little supervision.
Deciding which model to adopt can be a little bit tricky for you as a business owner. Here is a table of how staff augmentation vs. managed services models compare to each other;
|Staff Augmentation||Managed Services|
|Best for||Short-term needs, and Low-budget projects||Outsourcing entire project over a long period|
|Billing||Billed based on time spent on the project||Billed per project usually on retainer|
|Processes||Committed to giving an input||Committed to delivering an outcome|
There you have it, that’s how staff augmentation vs. managed services models compare. Staff augmentation adds an expert to work with your team to deliver a project while managed services providers work independently to deliver the project as defined.
PlumLogix helps businesses with Salesforce-managed services to extend your team’s capabilities to achieving digital transformation goals. We help you grow your business and become more effective. Get in touch and let us grow your business together!