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Digitization has taken over the market, and the competition has increased manifold. Businesses need to maintain a strong web presence to stay afloat in this cut-throat market. For this, they need a reliable and efficient IT team. However, companies often face confusion about whether to go for IT managed services or staff augmentation.
Yes, both these services have their own set of advantages and disadvantages. But, the big question is which one will be the right choice for your business?
Around 60% of businesses surveyed said they plan to increase their use of IT managed services in the next 12 months. The global managed service’s market value will also reach USD 248,750 million by 2026.
On the other hand, the most popular staff augmentation among larger enterprises, with 89% saying they would increase or maintain their current usage.
So, what’s the difference between staff augmentation and managed IT services? Both have their own benefits, and it ultimately depends on your business’ needs. Let’s look at IT managed services vs. staff augmentation and try to find an answer to this question. Read on to find out more.
What are IT Managed Services?
IT managed services involve entrusting the day-to-day management of your IT infrastructure to a third-party service provider. The provider will be responsible for monitoring, maintaining, and troubleshooting your IT systems.
These services give you the peace of mind to know that your IT infrastructure is in good hands.
Pros of Managed IT Services:
Retain Focus on Operations- One of the primary advantages of these services is that it helps you focus on your operations. When you outsource your IT infrastructure to a third-party service provider, you can focus on your core business goals and objectives.
Improved Security- With managed services, you can be assured of enhanced security for your data and systems. The service providers have the major tools and expertise to identify potential threats and vulnerabilities. They can also implement the latest security measures to protect your data from cyber-attacks.
Better Scalability- Managed services also offer better scalability for businesses. As your business grows, you can scale up your IT infrastructure without hassles. The hired team will handle all the necessary upgrades and modifications.
Save Time Managing IT- You don’t have to worry about managing it yourself when you outsource your IT infrastructure to a managed service provider. It can free up a lot of time that you can use for other essential tasks.
Cons of Managed IT Services:
Lack of Flexibility- One of the disadvantages of managed services is that they lack flexibility. It can be a significant problem if you are not happy with the provided services. Once you sign a contract with a service provider, you will have to stick with them for the contract duration.
Higher Costs- Managed services can also be quite costly, especially for small businesses. The service providers will charge you a monthly fee for their services. This can be a burden for companies with tight budgets.
Loss of Autonomy- When you outsource your IT infrastructure to a managed service provider, you will have to give up some control. They will be responsible for managing and troubleshooting your systems. This can be a problem for businesses that want complete control over their IT infrastructure.
What is Staff Augmentation?
Staff augmentation involves hiring additional staff to supplement your existing workforce. The new team will work alongside your in-house employees to complete projects.
This outsourcing is a good option if you need an additional workforce for a short-term project. It can also be used to fill the gaps in your workforce during periods of high demand.
Pros of Staff Augmentation:
Flexible Workforce- One of the main advantages of staff augmentation is that it gives you a flexible workforce. You can employ as many workers as you need for a specific project. Once the project is completed, you can let go of the employees.
Cost-Effective- Staff augmentation is also a cost-effective solution for businesses. There is no need to provide benefits or other perks. You only have to pay for the staffing services whenever you hire them.
Retain Project Control- With staff augmentation, you can retain control over the project. You can also hire employees with the specific skill set you need. The new employees will work under your supervision.
Fewer Legalities- When you augment your staff, fewer legalities are involved. Unlike managed services, you are not bound by a contract. It gives you the flexibility to change service providers if you are unsatisfied with their performance.
Cons of Staff Augmentation:
Higher Training Costs- One of the disadvantages of staff augmentation is that it can be pretty costly to train the new employees. You will have to provide them with the necessary training and resources. It can add to your overall costs.
Lack of Consistency- Another downside of staff augmentation is that it can lack consistency. The new employees may not be as familiar with your company’s culture and values. This can impact the quality of work.
IT Managed Services vs. Staff Augmentation-Which is better?
The best option for your business depends entirely on your specific needs and requirements. To answer this question well, here are a few things that you can consider basically:
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Project Type & Size
Managing services will be a better option if you have a large complex project. The reason is, managed services providers have the necessary resources and expertise to handle such projects.
On the other hand, staff augmentation would be a better option if you have a small and simple project. Because in this case, you can get the necessary resources quickly and easily.
Key Takeaway
“Choose Managed IT service for large and complex projects and staff augmentation for simple projects”.
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Project Duration
The long-term project should go with managed IT services. With managed services, you can sign a contract for an extended period. It will give you the peace of mind that your IT needs are being taken care of in the long run.
Whereas, if the project is short-term, staff augmentation would be better. This is because a contract does not bind you, and you can let go of the employees once the project is completed.
Key Takeaway
“Managed services is the best option for long-term projects whereas staff augmentation is the right choice for short-term projects”.
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Level of Control
The level of control is an essential factor to consider when choosing between IT managed services and staff augmentation. With managed services, you will have less control over the project as the service provider will be responsible for managing the IT infrastructure.
Whereas staff augmentation gives you the flexibility to choose the employees, you want to work on the project. You will also have more control over the project as the employees will be working under your supervision.
Key Takeaway
“IT managed services provide less control over the project, whereas staff augmentation gives you more control over the project.”
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Budget
Budget is also a vital factor when choosing between IT managed services and staff augmentation. These services can be pretty costly as you will have to sign a contract for an extended period.
Whereas, with staff augmentation, you only have to pay for the services of the employees when you need them. There is no long-term contract involved.
Key Takeaway
“Managed services can be costly, whereas staff augmentation is a more budget-friendly option.”
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Scalability
Scalability is another essential factor to consider when choosing between IT managed services and staff augmentation. It can be pretty challenging to scale up or down with these services as a contract binds you.
Whereas staff augmentation services allow you to scale up or down as per the requirements. You can add or remove employees depending on your project requirements.
Key Takeaway
“Managed services are not as scalable as staff augmentation”.
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Risk Factor
Another factor to consider when choosing between IT managed services and staff augmentation is the risk factor. With managed services, you will have to sign a contract for an extended period, and canceling the agreement before the end can be pretty costly.
Whereas with staff augmentation, there is no such risk involved as you only have to pay for the services when you need them. There is no long-term contract involved.
Key Takeaway
“Managed services involve more risk as compared to staff augmentation.”
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Security
Security is another significant factor when choosing between IT managed services and staff augmentation. With managed services, you will have to entrust the service provider with managing your IT infrastructure.
On the other hand, staff augmentation allows you to choose the employees you want to work on the project. You will also have more control over the project as the employees will be working under your supervision.
Key Takeaway-
“IT managed services are less secure as compared to staff augmentation.”
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Communication Ease
Communication is another essential factor to consider when choosing between IT managed services and staff augmentation. You will have to rely on the service provider for support and assistance with managed services.
With staff augmentation, you will be working with the employees directly, so there will be no communication issues. You can connect with your team directly anytime.
Key Takeaway-
“Staff augmentation is more user-friendly as compared to managed services.”
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Maintenance
Another factor to consider when choosing between IT managed services and staff augmentation is the maintenance cost. With managed services, you will have to bear the cost of maintaining the IT infrastructure.
Staff augmentation does not involve any additional maintenance cost. You only have to pay for staff, and the employees will be responsible for taking care of the project requirements.
Key Takeaway
“Managed services involve additional maintenance cost, whereas staff augmentation does not involve additional maintenance costs.”
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Expertise
Last but not least, when choosing between IT managed services and staff augmentation, another factor to consider is expertise. Managed service providers have a team of experts who handle complex projects.
In staff augmentation, you have the flexibility to choose the employees you want to work on your project. You will also have more control over the project as the employees will be working under your supervision.
Key Takeaway
“Staff augmentation is a better option when you need experts for your project.”
Conclusion
Now that you know the difference between IT managed services and staff augmentation, it’s time to make the right choice. Consider all the factors mentioned in my blog to make an informed decision.
Do you need help with choosing the right option for your business? Get in touch with the market experts to help you choose between an IT outsourcing service provider or a staff augmentation company. It will help you save time and money in the long run.
Go Ahead & Good Luck!
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