According to statistics, more than 57% of companies place their trust in external experts, and analysts forecast that the global outsourcing market will surpass $405 billion by 2027.
In an age where companies are fighting for market share, reaching the top and staying there is getting harder. Opting for talent pools to streamline the process is what companies are heading for. But finding top talent is easier said than done. Companies either need to work on enhancing the skills of their in-house talent or hire top-skilled talent based on project needs.
In this case, companies are left with two choices: IT Staff augmentation and managed services.
In this blog post, we aim to provide clarity on the definitions of IT staff augmentation and managed services and assist you in distinguishing between the two. Our goal is to empower you to make an informed decision about selecting the most suitable model for your business.
IT staff augmentation:
Also known as IT out staffing, this is a business strategy that involves hiring an external IT specialist or a third-party service-providing team to help enhance productivity and offer extra assistance to the current in-house team. This can be done on a temporary or contractual basis, depending on your project requirements.
Managed services:
This practice allows businesses to entrust a third-party service provider with the proactive administration and support of certain IT processes. Be it to develop advanced products, websites, and applications, to tend to cybersecurity, or to back up with the latest tools and techniques, one can outsource these IT functions, roles, and responsibilities to a third-party vendor.
IT Staff Augmentation vs. Managed Service
| CRITERIA | IT STAFF AUGMENTATION | MANAGED SERVICES |
| Scope and Duration | Best for short-term and specific projects | Best for ongoing, day-to-day support and management |
| Internal IT Team | Helps bridge skill gaps and balance workloads. | Supports small teams or even takes up the place of non-existent ones. |
| Budget Friendly | The cost depends on the resources and duration. | Involves fixed monthly costs. |
| Communication Flow | Direct | Via the vendor’s project manager |
| Knowledge | must be documented and transferred | Vested in the individual |
Which One Will Best Suit Your Business?
| IT STAFF AUGMENTATION | MANAGED SERVICES |
| Works well for small and medium enterprises. | Best for big businesses |
| Helps save on operational and infrastructure expenses. | Ideal when you lack domain expertise or are unsure about how a particular industry works. |
| Professionals can work remotely or from confined workspaces. | This helps run your entire business operation. |
The decision between the two models, which have advantages and disadvantages of their own, depends on the requirements of your business, the nature of the IT activities, and the degree of control and accountability the organization wishes to retain over the projects.
Access the best IT-skilled talent and seek IT staffing advice by getting in touch with AMBC’s experts today.