Staff Augmentation vs Managed Services: Choosing the Best Alternative for your Business
Have you ever wanted to know the difference between Staff Augmentation vs Managed Services? The truth is that to boost your business, it is vital that you know when to use each one. After all, to enhance the performance of your company and your teams!
In this article, we will tell you why you should use Staff Augmentation and when to use Managed Services for your company.
Staff Augmentation vs Managed Services: everything you need to know
First of all, it should be noted that in the IT field it is key to understand the importance of outsourcing personnel. That is to say, more and more companies need services to boost results. And this raises the question of which model to implement, especially between Staff Augmentation vs Managed Services.
But what does each one consist of? Here are the main details.
What is Staff Augmentation?
First and foremost, it is essential to define the Staff Augmentation process. According to Toptal, it consists of the incorporation of a collaborator to the internal staff, but a difference appears: it will not be a “forever” employee, but rather a “help” for a specific period, for certain purposes.
For this reason, these types of workers are not direct company employees. Even though they will work together with the company’s full-time employees, they will not represent an increase in headcount.
And what are its advantages? Well, one of the most important is that it reduces hiring time. When you add “full-time” internal employees to your staff, you will have to go through different hiring processes. In other words, there are usually many interviews and a lot of bureaucracy that you will have to go through.
Here, however, the recruitment time is significantly reduced. Especially if the workers are already familiar with this methodology and are accustomed to working under the Staff Augmentation system. In turn, this implies a new advantage: the flexibility of hiring.
Today’s work is really dynamic and constantly changing. For this reason, using this process means being able to hire new employees for specific tasks. For example, if you have few serverless computing jobs in your IT company, it may not be worthwhile to hire full-time employees.
On the other hand, adhering to this modality will mean that, before any project that may arise for the cloud, you will be able to hire them punctually for this. And, in turn, it will imply an economic benefit. You will not spend money for a position you do not need, and at the same time, you will be able to take advantage of any assignment that arises from a client for this area of specialization.
What are Managed Services?
Let’s move on to Managed Services. According to BMC, this is another effective way of working in a company, which consists of hiring an IT service provider. This situation means that they will take care of managing a company’s operations, whenever specialized support is needed in a particular area.
It is a working model that companies use since it saves the client’s time. In this way, by outsourcing a product to a specialized IT company, you no longer have to worry about deadlines or delivery times, since another company, with its work team, will supervise the processes.
However, some businesspeople sometimes cannot understand the value of this contracting format: companies that want to be on top of every detail of the project may feel insecure. After all, it means delegating all responsibility to the supplier. However, it is always possible to use a technical document to monitor the progress of each delivery. You need to trust in the supplier you are making business with to delegate without second thoughts.
This is a perfect system for those sectors that are not a priority for the company and that demand too much “unnecessary” time. For example, if your company focuses on marketing and advertising, you can delegate IT development to focus 100% on your core business, generating greater economic benefits.
All in all… What Method Should You Choose?
Both work structures have their advantages and can help you achieve your goals more effectively. From our experience, at Huenei we believe that Managed Services is a more appropriate alternative than Augmented Teams for companies whose core business is not software development. Managed Services will allow you to delegate the entire project to a company with extensive experience in managing development processes, such as Huenei. In this way, you can rest assured that the result will be excellent.
In all cases, it will be necessary to hire an ethical, reliable supplier with experience in the market. At Huenei we have been working for years offering our clients the best service. You can review our case studies to learn about our experience in the field.
In short, you already know the difference between Staff Augmentation vs Managed Services. What´s important is that you can use each method in the cases that suit you best. We hope this article has been helpful!