In this cut-throat business space, entities are always striving for ways of higher efficiency at lower costs, thus keeping their competitiveness sharp. Software development and IT staff-out are two models that companies have embraced in the context of staff augmentation and managed services. The two of them come with their advantages; the application of each depends on what a business is looking for.
Hence, companies have to be aware of the differentiating factors related to these models in making a choice that best fits their firm. If you want to select the most appropriate method for your organization, just visit this page https://giraffesoftware.com/services/staff-augmentation. You will find services in the field of staff augmentation, which are specially designed to fulfill the very specific needs of your projects.
Understanding the Distinction Between Staff Augmentation and Managed Services
Staff augmentation and managed services may seem similar from the outside as they are both outsourcing strategies that involve sending personnel to meet business goals. However, there are some fundamental differences between the two models.
What is Staff Augmentation?
Staff augmentation is a kind of outsourcing whereby a company brings in a temporary workforce from outside to become part of the team of the organization. This way, organizations are able to take care of their workforce according to the project needs and time periods so that the business has no necessity to employ full-time workers.
In the staff augmentation model, the augmented staff is aligned to your organization’s guidance, obeying your procedures and using your equipment. The model is very suitable for a company that is looking for specialist knowledge and extra hands for a short-term project.
An Overview of Managed Services
Nevertheless, the two concepts of outsourcing and managed services are distinct – outsourcing is when the third-party provider attaches to only a specific activity and managed services are when the entire function or department is delivered by the service provider. In this model, the full responsibility for managing and delivering the required outcomes lies with the service-providing company, which in turn lets the customer concentrate on their core functional activities.
Managed services, as opposed to short-term contracts, are usually formal arrangements whereby the provider takes full responsibility for the employees, technologies, processes, and performance issues.
Comparing the Two Models: Staff Augmentation and Managed Services
Flexibility, cost, and control are some of the important points in the matter relating to staff augmentation and managed services. From the above, we can do a comparative analysis as follows to make it easier to understand the difference between these two models.
Flexibility and Scalability
Staff augmentation and managed services differ primarily in flexibility and scalability. Each model’s distinct attributes are elaborated below:
- Staff Augmentation: This highly flexible and highly scalable measure gives you the freedom to increase or decrease the number of employees based on the project requirement.
- Managed Services: The main advantage of these services is that they minimize costs, albeit with a host of restrictions, as the service provider is in control of every process and personnel.
Costs and Budgeting
Price is one of the factors that always matters when two or more organizations are competing for a project. Understanding the differences in budgeting of these models is very important:
- Staff Augmentation: The variable costs are variable according to the number of employees that have to be staffed and the duration of the project. This can be a cheap option in the short run for short-term needs.
- Managed Services: More optionally, on a monthly or annual basis, a price that is paid has become commonplace. Thus, for projects with a long project duration, it is easier to incorporate the cost of the project. It can also be of moderate expense.
Level of Control and Oversight
Project control can define the success or failure of business projects. Here’s how control differs between the two models:
- Staff augmentation improves the management process so that the augmented staff acts according to your rules and within your organizational hierarchy.
- Managed Services: The service provider manages the entire procedure. This could be favorable for you if you want to focus more on the core things, but this may not be appropriate for you if you need to control it more closely.
Advantages of Staff Augmentation
Staff augmentation comes with several advantages:
- Access to specialized skills and expertise.
- More control over the finished product and the ways of achieving it.
- This is advantageous in cases where a business has short-term projects.
Advantages of Managed Services
Managed services also offer distinct benefits:
- End-to-end outsourcing of other activities allows you to concentrate on what you do best.
- Availability of more extensive authorities and equipment.
- Less management responsibility.
Choosing the Right Model for Your Organization
The decision on staff augmentation vs. managed services is relative and highly dependent on the organization and its needs. Whether extending your teams to your projects or outsourcing your development projects to a strategic partner, Giraffe Software is perfectly suited to help you achieve your business goals.
In conclusion
Choosing the right way for your business is sure to be an exceedingly difficult task, but it is a must to get a clear idea of the difference between staff augmentation and managed services. All models have a different purpose and can be the best choice for the given situation if you need flexibility, control, or full management of the process. Therefore, the variation of the model helps you select the one that will suit your organization’s needs.
