Are you struggling with the challenge of scaling your business’s IT operations? You’re not alone.
According to Gartner, global IT spending is expected to reach $4.6 trillion in 2023, representing a 5.5% increase from the previous year. This is a clear indicator of how critical IT is to businesses’ long-term success.
When it comes to achieving that success through the power of IT, companies like yours have two primary options: managed services vs. staff augmentation.
“The choice between staff augmentation vs. managed services is more than just a financial decision; it’s a strategic move that can make or break your business,” explains Jonathan Sandmel, CEO of Steady Networks.
However, the main question is, when deciding between managed services vs. staff augmentation, which option is the best fit for your needs? In this article, we’ll explore the differences between staff augmentation vs. managed services to help you make an informed decision.
Managed Services vs. Staff Augmentation: Which One is Right for You?
Find you by partnering with a leading managed service provider (MSP).
What is Staff Augmentation?
In simple terms, staff augmentation is a flexible outsourcing model that allows you to hire tech talent globally to complement your in-house staff, thus augmenting your team. It is especially effective if you require certain types of knowledge or expertise for specific projects.
Pros of Staff Augmentation
You can quickly scale your team up or down based on your specific projects.
Need a software developer with expertise in Python? Staff augmentation allows you to hire individuals who have specific skill sets.
Cost-Effectiveness for Short-Term Projects
For short-term needs, staff augmentation can offer significant cost savings. In fact, relying on a staff augmentation model can help your business save as much as 50% on hiring costs.
Cons of Staff Augmentation
Despite there being many benefits to relying on staff augmentation, there are some drawbacks to it as well.
Lack of Long-Term Strategy
The staff augmentation model is generally not suitable for long-term planning.
You or your designated project manager will need to manage the augmented staff directly.
Risk of Staff Turnover
High turnover can disrupt your internal processes.
Staff augmentation is perfect when you need complete control over the project and when you have short-term needs.
What are Managed IT Services?
Managed IT services involve outsourcing your IT needs to a Managed Service Provider (MSP), who takes care of your IT infrastructure end-to-end.
Pros of Managed IT Services
An MSP offers a managed services model that covers everything from cybersecurity and data backup to technical support and networking services.
Expertise in IT Strategy
Managed services connect you with professionals who can guide your long-term IT strategy. This is critical, as 44% of business leaders believe their companies are better at implementation than strategy development.
You pay a fixed monthly fee, making budgeting easier.
Cons of Managed IT Services
You have less direct control over staff.
Some providers lock you into long-term contracts.
Potential for Over-Service
You might end up paying for services you don’t need or use.
Ideal Use Cases
Managed IT services are ideal when you want to focus on core business functions and leave IT to the experts.
Key Differences Between Staff Augmentation vs. Managed Services
Staff augmentation can be more cost-effective short term, while managed services offer long-term cost predictability.
Control and Flexibility
Staff augmentation gives you complete control over the project. In contrast to that, managed services offer less direct control but more expertise.
Skill and Expertise
Staff augmentation allows for skill-specific hiring, whereas managed services offer a broader range of expertise.
Making the Decision
Now that you understand the key differences between managed services vs. staff augmentation, you can begin to decide which service model is more in line with your business’s needs. However, before you arrive at your final decision, consider these elements:
Assess Your Needs
Take some time to think closely about your long-term and short-term goals. Think about where your business will be in five or 10 years from now, and consider using the SMART formula.
Consult With Experts
Talk to both staff augmentation and managed service providers to get a more comprehensive view.
Trial and Error
Consider starting small with both models to see which fits your needs better.
Staff Augmentation and Managed Services: A Quick Comparison
|Criteria||Staff Augmentation||Managed IT Services|
|Cost||Variable||Fixed monthly fee|
|Skill and Expertise||Skill-specific||Broad range|
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Staff Augmentation vs. Managed Services: Make the Right Call With a Trusted IT Partner
Choosing between managed services vs. staff augmentation is a critical decision that impacts your business strategy, costs, and IT effectiveness. While arriving at a final decision involves multiple steps, the good news is that you don’t have to make that decision alone.
Steady Networks is a leading provider of managed IT services in New Mexico, offering reliable services tailored to your business’s unique needs. Whether you are looking to augment your staff or implement fully managed IT solutions, we have the answers you’ve been looking for.
Ready to make the jump to IT services you can count on? Reach out to us today to schedule a free consultation and make the right choice for your IT needs.
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