The digital transformation wave is sweeping across industries, making IT an indispensable part of modern business. However, 64% of organizations experience skill gaps that prevent them from meeting current IT needs, according to a report by CompTIA.
| “Some small businesses make the mistake of making their long-term digital strategies based on temporary staff augmentation in order to save money. Since small businesses today are dependent on the digital environment not only to survive but to thrive, it is important to have a long-term strategy regarding I.T. that managed services can provide.” John Hougen, Vice President & General Manager at CITOC, Inc. |
In this blog, we will dissect the differences between staff augmentation vs. managed services, helping you make an informed decision tailored to your business needs.
What is Staff Augmentation?
Staff augmentation is a strategy that allows you to add skilled IT professionals to your existing team on a temporary basis.
When is Staff Augmentation Beneficial?
Short-term Projects: When you have a project with a tight deadline.
Specialized Skills: When you need a specific skill set that your in-house team lacks.
What are Managed IT Services?
Managed IT Services involve outsourcing your entire IT operations to a third-party provider.
When are Managed IT Services Beneficial?
Long-term Strategy: Ideal for businesses looking to offload IT management.
Cost-Effectiveness: According to Deloitte, companies that outsource IT services can save up to 60% on overhead costs.
Comparing Staff Augmentation vs. Managed Services: Key Factors
Cost
Short-term vs. Long-term Costs: Staff augmentation is generally more cost-effective in the short term, while managed services offer long-term savings.
Skillset
Specialized vs. General IT Skills: Staff augmentation is better for specialized skills, whereas managed services offer a broader range of IT skills.
Flexibility
Adaptability to Changing Business Needs: Staff augmentation offers more flexibility to adapt to immediate changes.
Control
Level of Control Over IT Resources and Projects: Managed services often require relinquishing some control, while staff augmentation allows you to maintain it.
| Factors | Staff Augmentation | Managed IT Services |
| Cost | Short-term Savings: Pay for the skills you need, when you need them. | Long-term Savings: Fixed monthly or annual costs cover a wide range of services. |
| Skillset | Specialized: Ideal for niche or highly technical projects. | General: Broad range of IT skills and services available. |
| Flexibility | High: Easy to scale up or down based on project requirements. | Moderate: Contract terms may limit quick scaling. |
| Control | High: You manage the augmented staff directly. | Moderate: Third-party manages IT operations, you have less direct control. |
| Speed of Implementation | Fast: Can quickly onboard specialized skills. | Moderate: Requires initial setup and transition period. |
| Quality Assurance | Varies: Dependent on the skills of the augmented staff. | High: Managed services often come with SLAs that guarantee a certain level of service. |
| Resource Management | Your Responsibility: You manage all aspects of the augmented staff. | Provider’s Responsibility: The service provider manages resources, including hiring, training, and more. |
| Risk Management | Moderate: Risks associated with the quality and reliability of temporary staff. | Low: Managed services often include robust security and compliance measures. |
| Long-term Strategy | Limited: Focus is generally on specific projects or short-term needs. | Comprehensive: Long-term IT strategy and planning are often included. |
| Availability | Limited: Availability is project-based. | High: Typically offer 24/7 support and monitoring. |
Advantages and Disadvantages: Staff Augmentation
Pros
- Highly Specialized Skills
- Immediate Availability
Cons
- Potential for Skill Redundancy
- Lack of Long-term Commitment
Advantages and Disadvantages: Managed IT Services
Pros
- Comprehensive IT Solutions
- Predictable Monthly Costs
Cons
- Initial Setup Costs
- Potential for Over-Provisioning Services
Managed Services vs. Staff Augmentation: Which is Right for You?
Consider your long-term goals, immediate needs, and the level of control you wish to maintain over your IT operations when making your decision.
Make a choice Between Managed IT Services vs. Staff Augmentation with CITOC as your IT Partner
You’ve navigated the complexities of choosing between staff augmentation and managed IT services. Now, it’s time to make the best choice for your unique business needs.
Ready to make the best choice for your IT needs?
Reach out to CITOC for a free consultation, and let’s diagnose the perfect IT solution for your business together.
