Managed Services vs. Staff Augmentation

In today’s fast-paced business world, you likely find your business constantly looking for ways to improve your IT capabilities while keeping costs under control. Two common strategies that are often considered are staff augmentation and managed services . 

While both approaches involve outsourcing your IT functions, they have distinct differences that should be considered before making a decision.

In this blog, we’ll take a look at the primary differences between staff augmentation vs managed services to determine which solution is best for your organization’s needs. 

Staff Augmentation vs. Managed Services: The Difference  

Staff augmentation vs. managed services : what are the key differences between the two? 

Staff augmentation involves hiring temporary or contract workers to supplement an existing IT team. These workers may be brought in for specific projects or to fill gaps in knowledge or expertise. 

Managed services , on the other hand, provide businesses with a more comprehensive approach to outsourcing IT functions in the long-term. Instead of hiring individual workers, companies can outsource entire functions such as help desk support, server management, or network security to an external provider. 

This approach can be particularly useful for businesses that do not have the resources to hire a large internal IT team or that want to focus their resources on core business functions. Over 92% of G2000 companies outsource their IT management today as a way to leverage these benefits.  

Let’s now explore some of the other advantages of managed services vs. staff augmentation. 

What Are the Advantages of Managed Services?

Managed IT services have become so popular in recent years that the market is growing at a CAGR of 12.8% from 2023 to 2030 . What are the benefits responsible for this growth?

Expertise: MSPs typically employ a large team of IT professionals with a diverse range of skills and expertise. This can be particularly beneficial for businesses that require specialized skills or knowledge that their internal team does not possess.

Cost Savings : Instead of hiring a large internal IT team, companies can outsource IT functions to an MSP that can provide these services at a lower cost due to economies of scale. This approach can be particularly beneficial for small or mid-sized businesses that do not have the resources to build and maintain an in-house team. 

Scalability : Managed IT services are designed to scale with your business as a full-time solution, which means that you can easily add or remove services as your needs change. This makes it easy to adapt to new technologies or changing business requirements.

Time Optimization: Managed services models are beneficial in that they help relieve the burden off of your internal IT team which in turn saves time for your team members to focus on core business operations rather than repetitive IT tasks.

What Are the Advantages of Staff Augmentation?

Flexibility : With staff augmentation, you can hire temporary workers for short periods of time to complete specific projects or provide additional support during busy periods. This approach can be particularly useful if you have  fluctuating IT needs or that require specific skills your internal team does not possess.

Keeps You in Control: Another advantage of staff augmentation is that it allows you to retain control over your IT operations. You can choose the specific workers you want to hire and can closely manage your work. This approach can be beneficial for businesses that are hesitant to give up control over their IT functions or already have a sufficient in- house team . 

Determining Which Approach Is Best For You

When determining which outsourcing model is right for your business, there are several factors to consider.

1. What operations do you want to outsource?  

Evaluate your IT needs and determine which functions you want to outsource. If you require specific skills or expertise for a specific project, the staff augmentation model may be the better choice. If you are looking for a more comprehensive approach to outsourcing IT functions, managed services may be more suitable. 

2. What is your budget?

Another factor to consider when choosing an IT services model for your business is your budget. According to McKinsey Global Institute research, outsourcing IT services lowers costs by 60% .

Staff augmentation can be a cost-effective approach for short-term or project-based needs, but it may not be the best choice for long-term IT support. Managed services may provide more clear and predictable pricing over the long-term , especially for ongoing IT support.

3. How much involvement do you want in your IT operations?

In deciding between staff augmentation vs. managed services , consider how much involvement you’d like to have in your day-to-day IT operations. 

If you want to maintain tight control over your IT functions and entrust some of your IT operations to your internal team members , staff augmentation may be the better choice. If you are looking to outsource IT functions completely and focus on core business functions, managed services may be the better choice.

Streamline Your IT Operations with Our Help

Staff augmentation and managed services are both viable approaches to outsourcing IT functions – and hopefully this blog has helped make the decision process a little easier. 

If you’re still unsure, we can help you determine the best fit for your business needs and streamline your IT operations through our value-added IT services backed by 26+ years of experience. Powersolution.com is driven by our Preeminent Value® backed by three main concepts:

• Relationships 
• Expertise
• Integrity

Learn more about how we can help you make the decision between managed services vs staff augmentation ! Contact us today .