Staff Augmentation vs Managed ServicesApril 27, 2022
Learn the Difference Between these two models:
Do you want to know why your competitors’ businesses grow fast?
Right management model – that’s why. Software development is like a mechanism with a lot of details. What part is missing and how to make everything work in your case? Is it one developer, or the whole new team including managers? Staff Augmentation vs Managed Services – which one of these work models suits your business better?
Defining the staff augmentation as the process of hiring an employee to internal staff. The difference between this process and regular hiring is that you hire a remote employee or a team for certain purposes for a certain period.
They are not your permanent employees, but they are fully integrated into the internal team. A company, which wants to use this model for its project development, reduces hiring time and many efforts connected with it.
Hiring time is greatly reduced because of the wide range of talents, especially in Ukraine.
If we compare staff augmentation to managed services, the first model allows you to feel comfortable in the system of “connecting or disconnecting” a specialist you need. That’s great because you don’t have to worry about additional payments and taxes when hiring.
Absolutely everyone wants to get economic benefits. Is this really possible? Our answer is definitely YES!
Your internal project managers can easily control the work, understanding the role of everyone in the team with IT staff augmentation not delegating any responsibilities to other models.
Before you start the staff augmentation, you need to evaluate all possible disadvantages of this model.
Because the strategy does not involve a documented agreement on the level of service, except for working hours and responsibilities, the control of the process falls entirely on your shoulders.
What is the Managed Service Model?
The global difference between staff augmentation and managed services that MS is a part of outsourcing while SA is about outstaffing. The client company fully transfers management, monitoring, and control of its resources, delegating responsibilities to another company.
This model helps to save the client’s time capacity in terms of productive time management. You have outsourced your product to a managed services company and you no longer need to worry about intermediate deliverables and how to finish the project on time and you can spend your time for fruitful marketing, for example.
You have a fairly successful company, but you did not use online systems before and there was no staff of developers. You are confused about which path to take, but you want to confidently keep up with the times, using modern trends. This model will allow you to save time and considerable effort there if the work is done by a team of experienced professionals.
It would seem that a managed service is just a storehouse of advantages. You delegate your responsibilities, get an experienced vendor, and enjoy positive feedback from customers. But you should be careful in this software development model.
This is the main and significant con of the system. While using SA you have a stable control by your “home” managers, there is an “out” vendor in MS. You need to be confident in the company by giving them full control over the management.
If we compare staff augmentation to managed services, we understand the difference in costs is obvious. Management companies take risks and this is the reason why the price is much more expensive. In this part managed capacity vs staff augmentation is more than justified.
Use staff augmentation if:
You have a new or a live project and urgent help is the key point. It’s essential to “enable or disable” specialists without any problems.
You want to control all software development stages and know the inside process well. It’s a useful choice to cope with staff augmentation there, because of personal responsibility while managed services can’t provide.
Use managed service if:
You don’t have a skillful technical manager and even the thought about routine management makes you crazy – all you should do is to find a talented experienced vendor who will take responsibility for yourself
You are ready to fully delegate responsibility, you are aware of all possible risks, you know how to properly formalize contracts, so as not to be deceived in expectations and, of course, the consequences
In our present reality managed capacity vs staff augmentation will become a great resource for the best results. If you can correctly use these models for your business, taking into account their advantages and disadvantages, you will not only achieve the desired success but also rise to new heights.