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Modern digital transformation is complicated and requires flexibility from enterprises. Where can you find the digital expertise required if ongoing projects do not require IT personnel? The need to find alternative solutions to such questions drives enterprise management.
They are not all alike. These are the most widely used models. IT staff augmentation services (out-tasking) and managed IT services (outsourcing) are widely accepted methods of adding IT components to an organization's infrastructure.
Let us first distinguish between managed IT services and staff augmentation.
In most cases, choosing between the two models takes a lot of work. There is no single solution due to the variety of projects.
It is best to understand the differences and systematically solve the problem. This article will distinguish between managed service and staff augmentation. This article is based on our extensive out staffing experience.
On-demand team augmentation can often be offered as an alternative to traditional outsourcing. This model gives you control over what, when, and how you do it.
A leadership structure is essential.
Managed Services are a more limited area. Managed Services allow you to focus on your business operations while the provider takes care of everything else.
It is the responsibility of the provider to ensure services meet industry standards.
Let's look at each to help you decide which IT model is best for you.
What is Staff Augmentation?
Staff augmentation can be a temporary solution to permanent IT staff. This allows you to hire specialists for any project that may arise.
IT staff augmentation can be used by your company to help you scale up or down, depending on your current needs.
The IT staff augmentation model provides instant access to the best tech talent.
It has worked successfully with tech giants like Spotify, Google, Disney, and others to scale its products, processes, and services.
Established companies and start-ups can save money and increase productivity with IT staff augmentation.
Process of staff augmentation
The entire process is divided into three stages:
- Definition. First, determine your skills and knowledge and how many specialists are needed.
- Evaluation and search for new employees. You need to find a company that can either source qualified candidates or outsources people. Interviews and tests can help you determine their suitability.
- Support and adaptation. Integrating new employees into the workplace is crucial to ensure they are familiar with the company's core values and internal policies. For a strong team, they should participate in continuous training and have their input considered.
Different Types of Staff Augmentation
First, there may be differences in the collaboration form for staff augmentation.
Short-term augmentation
This is often used when full-time professionals need help to handle the task physically. They may be on vacation, sick, or don't have the time.
Long-term augmentation
Long-term augmentation is the best option for large, complex projects requiring extensive input. This is a great way to shorten the time it takes to implement a project and to lower the cost of training and finding employees.
You can subdivide the process into categories of augmentation based on your specialist qualification level.
Commodity
Reliable workers who can do simple tasks without requiring high levels of qualification can be a good option. For example, this could be auxiliary work in a store, construction, or retail.
Skill-Based
Sometimes workers need to have certain skills, regardless of their level. This could include processing and collecting data, working with clients, basic copywriting, and similar work.
Highly Skilled
This is a great option if you are looking for advanced skills: software developers, programmers, or designers who have a unique set and experience.
Here are some pros and cons of IT staff augmentation.
Pros
Retain Project Control
With IT staff augmentation, you can preserve project autonomy. This will allow you to make sure that your project meets your expectations.
Outsourcing companies will only assess your requirements and find qualified candidates to fill the position. Once you have selected the team members to be outsourced, they will work with your company to complete your mobile application development or software creation project.
Shorter Hiring Time
It is easier to hire because of Ukraine's wide range of talent. The latest survey shows that more than 55% are open to quitting their jobs to earn a higher salary or to be part of a more lucrative partnership.
This is because "our brains" constantly improve themselves and create continuous competition among developers from all levels.
The global mind bank allows clients to adapt to any situation. We can help you quickly find another specialist.
Featured Control
They will be able to manage the project and know the roles of each team member. They will be able to communicate the team's priorities and the final goals.
They can also delegate responsibility to other models.
They are integrated into the technical process and stages. This is far away from the SM model. This facilitates a more efficient work process.
Scalability
The traditional system of staffing needs to be more flexible. Companies need help adapting to industry changes. Many companies have to let go of large parts of their workforce.
Staff augmentation is a flexible solution that can be used by companies with regular shifts. Sometimes, a team working on a project might encounter issues it needs help understanding.
Staff augmentation can be scaled up to meet certain standards in these cases.
Companies can scale up faster if they have full-time employees. Temporary staffing is a way to manage any project.
You can also scale down without sacrificing the quality of your work.
Cons
A long-term relationship
The staff augmentation model can be challenged by long-term projects. Vendor workers may be required to do additional tasks or leave the vendor.
The Challenge of Cost-Effectiveness
Long-term staff augmentation may cost more than permanent in-house solutions. It all depends on how easy it is to retain and hire talent in-house.
Dependence
When staff augmentation occurs, the reliance on one provider could increase.
Engagement Skale
You might need more talent from one vendor. This could lead to inconsistent quality in your work. Collaboration is necessary with several vendors and employees.
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What are Managed IT Services?
Managed services offer a wider range of capabilities. Managed IT services usually require a monthly agreement. You get a wider range of support in return.
Managed service providers can assist you with helpdesk, system monitoring, maintenance, device monitoring, security, network monitoring and monitoring, cloud solutions, cybersecurity solutions, and cloud solutions.
They also offer hardware procurement and consulting on new products and services. A managed IT service typically includes all the services your company needs to keep its technology running smoothly.
This eliminates the need to hire IT staff.
Partnering with managed service providers (MSP) is smart. These are just a few benefits managed service providers (MSPs) can offer your company.
Types of IT Managed Service.
MSP offers a wide range of services that will allow you to select the best option. A provider can offer various services or specialize in a single service.
Infrastructure and networks
MSP can solve any network task, from setting up a WAP or local network to establishing connections. MSP also manages backup and storage options.
Security
This provider is responsible for securing remote infrastructure. These tasks can include anything from virus protection to BDR options and support for updating critical services or utilities.
Communication
The service provider monitors, manages, and controls messaging, data, and telephony. An integrated team can perform a call center's functions on your company's behalf.
MSaaS
SaaS (Software as a Service) offers an 80% solution and will not provide the 100% you need. MSaaS (Managed Software as a Service model) will.
You can request unique features or customizations from the provider.
Cloud infrastructure
This service category includes computing, storage, and networking. Virtualization services may be offered by some vendors for software, applications, operating systems, and other purposes.
Data Analytics
These services include business intelligence analysis that identifies market trends and helps create business-boosting plans.
If you need a data management specialist, hiring one is essential.
Support services
This service covers all aspects of specialized maintenance and support, from routine tasks to solving complex personnel problems.
Pros and cons of managed IT service:
Pros
Core Objectives
As your business grows, so will your IT needs. Your IT team may be capable of handling increased workloads. Still, they may become overwhelmed and unable to scale to meet your business needs.
This could lead to you delegating additional responsibilities to employees rather than the IT team. This could distract from the core business goals.
Managed services let your employees focus on their work and give you the ability to fill in any gaps. A trusted managed services partner can offer a flexible service model that allows clients to select the level of service they need.
Get the latest technology
Your company cannot be innovative if it is occupied with internal business tasks. Great MSPs will save you time and keep your company in line with the industry trends.
They will be knowledgeable about the latest technology. They can suggest which software to purchase and which areas of your business can benefit the most.
Predictable OpEx Cost
Managed services provide predictable spending, which is one of the biggest benefits. MSPs can offer services at either a fixed monthly fee or an annual charge, depending on the level of service.
The length of your contract is what determines the pricing. It is often between one and three years. Good MSP partners will disclose their services and deliverables.
Minimized Downtime
Most downtime is caused by equipment problems. Computers and servers can also go down. Electrical disruptions can also occur.
Installing redundant equipment can help to mitigate these problems.
Unintentional human error can cause significant downtime. It's impossible to prevent it. Strong safeguards in critical systems are the best way to reduce risk.
Cons
Physical Presence
MSPs can be difficult to locate near your business. This is one of the biggest drawbacks. A visit to the office is usually more expensive.
MSPs can remotely manage technology so that you can respond quickly to problems such as printer malfunctions. A local MSP can offer support within your state if you choose it.
Scope
MSPs are not able to cover all technology areas. MSPs often provide a list of supported applications (Microsoft Office or Google Chrome, for instance).
You will most likely lose your luck if you call an MSP to report a problem with third-party software or if it's outside the contract.
Limitations
Your team will know about any new services and opportunities you create in your IT system. You can manage it yourself or use an outsourced service.
A well-managed service will keep you updated by communicating with you frequently about business changes and updates. They should notify you if they need more resources and work with your requirements. Communication is key to any relationship.
IT Staff Augmentation Services Vs. Managed Services
What outsourcing model is right for you? Next, take a deep breath and evaluate the project objectively. To help you determine the right answer, ask yourself three questions.
Are you looking for a solution to a problem in the scope of your project or within your company's overall operations?
Managed IT services can be crucial for managing your business's growth. There are two options available, each with its features.
The staff IT augmentation allows for an increase in the workforce and additional hands to launch a project. This allows for easier management of large amounts of information and tasks, improving efficiency and productivity.
What type of partnership do we need?
Staff augmentation contracts fill in the gaps within your business by finding the right talent at the right time.
Managed services deliver better results over a longer period. This includes consulting, analysis, and implementation of business ideas.
What level do you expect to maintain control?
You are responsible for ensuring that the new employee can learn quickly and perform specific tasks. You can control each stage of development and ensure quality work.
MS is a case where you raise it, give the details, and then go. All tasks are to be performed by the hired company.
Comparison
Transitioning to managed services can be a great option for organizations involved in staff augmentation. This will allow them to enjoy all the benefits and skills access they seek, as well as the disadvantages of staff augmentation.
The key difference between these models is that a managed service model guarantees an "outcome" at a fixed price.
Staff augmentation models only offer input. A managed service model is a provider that provides input. This refers to the execution of an activity without any commitment that it will produce the desired outcome.
A managed service model is based on planning. The organization must specify the requirements on a service- and performance criteria basis.
Pricing is dependent on the outcome. The associated costs will adjust to the change in service requirements. This allows for the "scalability of demand" that is often desired in staff augmentation models and provides service-related scalability.
A service commitment is made when linked to managed services. The only service obligation under the staff augmentation model is the hours worked.
The managed services model is where the provider takes all the risks to meet the service commitment. This creates enormous value. The provider takes on the delivery risk at a fixed price and is therefore highly motivated to implement the productivity measures necessary to fulfill the service commitment.
The provider cannot afford to rely on individuals and risk not being able to meet the service commitment. This is evident in the implementation of processes and tools.
Service providers can also move work easily through global delivery structures with the help of documentation and process rigor.
The service provider can deliver reliable services with fewer, more productive resources by using documentation, tools, and processes. Managed services are designed to provide an organization with a low-cost, commercially viable service offering.
Managed Services: Opportunities for Improvement
Managed services are similar to a telescope that helps you see the whole picture and distant objects. They help companies make large-scale personnel decisions and guide them toward long-term goals.
A Managed Services model allows for outsourcing strategic and management functions to a Managed Services Provider (MSP) under a predetermined agreement.
- Prices and services are defined by the client and the provider.
- Services provided are "managed" as the MSP is responsible for not only the work but also the delivery model, people, and training, as well as the tools and processes used to complete it.
An MSP that offers a service creates formal commitments for the client.
- To measure provider performance relative to the Service Level Agreements tied to those commitments, the MSP uses key performance indicators (KPIs).
- This creates accountability for MSPs and a sense for employees to represent the provider.
MSPs take a proactive approach and look for opportunities to improve the business. MSPs consider both the current situation and future goals of the business, which can often result in a strong partnership between the MSP and the client.
Read More: What are Microsoft Managed Services?
Enhancement of Staff Focused on Your Immediate Problems
Staff augmentation is more like a microscope. Instead of scanning the horizon looking for improvement areas, staff augment narrows down on a specific focus area to solve an issue.
Staff augmentation companies provide staff based on the needs of their clients and focus on the following:
- Closing skills gaps
- Staff Augmentation is the addition of staff to existing employees by a client for a particular project.
- Controlling expenses
- Because Staff Augmentation sells time-in-seats rather than services, costs are often assessed incrementally--either per resource or per hour worked.
- The client feels more in control.
- Most often, the client manages the resources rather than the firm. This can give the customer a greater sense of control.
Staff augmentation is a great option for businesses struggling to meet project deadlines.
Staff Augmentation, by nature, is more reactive than Managed Services. Because of the short engagements and narrow focus on projects, personnel cannot contribute to the larger business goals.
The Hidden Cost of Staff Augmentation: Unmasking the Cost
IT leaders might be worried about losing control when adopting an MSP. Others may be concerned about disruptions to their IT departments or resistance.
Because of the perceived cost savings and greater control, these businesses prefer Staff augmentation. An MSP is not the best option for small businesses requiring only assistance with a few projects.
Although there are some advantages to staff augmentation in the short-term, staff augmentation over a longer period or across multiple projects comes with hidden costs that are not covered by Managed Services.
Take, for example:
- Resources and lost time with client-specific training
- The staff augmentation resource must be trained in client-specific tools and processes. After an MSP has a good understanding of your environment, he trains their resources.
- Higher management overhead
- Although you can save money by hiring employees internally, staff augmentation increases overhead. MSPs manage their resources, which decreases both these costs.
- Additional staff members increase costs.
- Your rates will rise significantly if you require more staff augmentation resources. Each additional resource costs roughly the same amount. An MSP is a service that you pay for at a fixed price.
Managed services are also more appealing for IT leaders who want better results across their IT projects.
Although Staff Augmentation is all about getting projects done, it can be challenging for staff to produce results using the same flawed internal processes that hinder internal employees from solving problems independently.
MSPs provide people who can solve problems and people who can understand why they are occurring.
This results in IT projects, and clients can proactively improve their work processes through detailed guidance on industry best practices. All this while maintaining a predictable cost structure.
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The Key Takeaway
It all depends on your company's specific needs. They are both so different. It's easy to determine which one is best.
Organizations with short-term talent shortages will find staff augmentation a great option. This will allow them to have the flexibility and cost efficiency they desire.
Managed services, on the other hand, are better suited for companies that need to outsource entire projects. You can be sure that your project will be managed by a dedicated team.
This makes IT outsourcing easier for them and helps to
