Are you still unsure which outsourcing model is best? Which one is between IT Staff Augmentation Vs. managed Services? Managed Services Managed IT services and staff augmentation are the two most popular methods for software development outsourcing. Each approach has unique benefits, drawbacks, and dangers. If you need more control and responsibility, and the resources to manage a development group, in between staff augmentation and managed services, prior is the best option. If you prefer to outsource all the work to a development firm, managed services may be the best choice. Now that you know what your business is, you can also see how each model operates. For business growth, choose the best staff augmentation or managed services company. Read full article here https://devtechnosys.com/insights/it-staff-augmentation-vs-managed-services/

1. IT Staff Augmentation vs. Managed Services –
What to Choose for Your Next Project?
IT Staff Augmentation vs. Managed Services: What Are They?
On-demand staff augmentation is often used for IT project outsourcing. This model
puts you in control and lets you decide what, how, and when to do it. You will need to
have a leadership structure.
Managed Services are a much more restricted area. The service provider will handle
the remainder, allowing you to concentrate on running your firm.
It is the responsibility of the provider to ensure that services meet industry standards.
This guide will explain the differences between IT Staff Augmentation vs. Managed
Services. We’ll discuss all aspects that go into deciding which option is right for you.
What is Staff Augmentation?
Staff augmentation refers to an outsourcing model where companies contract temporary outside staff to
increase their existing team’s capacity. You have the option to tap into offshore, nearshore, and onshore
talent, and scale up or down your team based on what you need.
Businesses can use staff augmentation in the IT industry for different stages of the development process.
This includes programming, workflow optimization, and quality assurance. You can thus overcome
roadblocks, hire key skills that your team might not have, meet time and budget constraints, fix bugs, and
speed up product launches.
Staff augmentation may be cost-efficient and flexible for your business. This temporary solution allows you
to use your existing staff and resources, while also allowing for outside talent and reducing operating
expenses.

2. The Benefits of the Staff Augmentation Model
1. You can control and reduce risk with Staff Augmentation: This allows you to have
complete control over the project’s outcome and monitor every aspect of the process.
The project manager for the team will give tasks to prioritize work and guarantee a
high-quality outcome.
You lose control of the custom Android app development process when you outsource
it to third-party suppliers. However, with SA you can keep the entire team in-house
and manage the project. This reduces the risk of substandard results.
2. Flexibility: This allows you to quickly acquire skills and capabilities that aren’t
available and can compensate for staff shortages due to unanticipated events during
project execution. You decide who and how long you want to employ.
3. Cost-effectiveness: You don’t have to hire permanent staff. However, increasing the
number can help you save money on full-time wages. For the exact amount of time
your team requires, you can get the assistance of highly-skilled experts.
4. This reduces recruitment time. In Staff Augmentation models the hiring process
falls on the service provider. It is your job to decide with whom you would like to work
together.
5. Flexibility: It depends on how large your project is, you might quickly find unique
talents that are not readily available locally or at short notice. You can also scale up or
down your team as necessary.
The Drawbacks of the Staff Augmentation Model
Long-term relationships are key: Staff augmentation models may be challenged on
long-term projects. Vendor workers might be asked to do additional work or leave the
vendor.
Staff augmentation can be costly: Long-term staff augmentation could end up costing
you more than permanent in-house solutions. This is dependent on how simple it is
to recruit and keep internal talent.
Dependence: Staff augmentation can lead to greater dependence on one third-party
provider.
Engagement scale: It is possible to not source enough talent from one vendor. This
can lead to inconsistencies in quality and require you to collaborate with multiple
vendors and employees.

3. What are Managed Services?
Managed services refer to an outsourcing model where a company
outsources certain functions to a third-party provider. This is known as a
managed service provider (or MSP). Managed service providers can be
contracted by businesses to handle virtually any task. This includes
cybersecurity, data migration, database administration, and software
development.
Managed service providers work independently, and are not part of the
company’s IT staff. Managed service providers provide clients with a
quote and a project timeline. Following that, they complete the job given
to them while continuing their regular contact with the customer.
As it cuts down on overhead, HR work, resource management, and other
costs, the managed services model can be cost-effective. Instead of
overseeing work daily, the company can concentrate on other business
tasks.

4. The Benefits of Managed IT Services
You can save time and money by using managed services. In both managed
services model vs staff augmentation, prior allows you to hire a team of
skilled and experienced professionals with the necessary technology and
resources to complete your project. You can save time, money, and effort,
and get the results you need. The cost of their services is set and fluctuates
according to the volume of work completed.
1. The Control: This is the person who oversees the entire project from
beginning to end. It is important to choose a reputable and experienced
company that has a track record of delivering superior results and high-
quality products.
2. Monitoring: The provider monitors all aspects of the project and makes
sure that resources and tools are always available. The vendor determines
the outcome of the project. The MS organization evaluates all risks and
creates a plan to manage them.
3. The improved cost model: Managed IT service providers’ prices according
to outcomes. The cost will change following changes in your desire for a
specific service. Service level agreements (SLA) are a guarantee of a
managed IT service’s success. They define the scope and duration for each
project. To get paid and increase the value of their work, managed service
providers will do everything they can to keep promises.
4. Access to talent: MSPs often have a larger staff augmentation firm than
they do staff augmentation firms. As a result, they can provide a wider
variety of abilities, information, and solutions to satisfy shifting client
requirements.

5. Drawbacks to Managed IT Services Model
1. Wrong service definition: Defining illogical services/touch-points means
complexity will increase. Short-term outsourcing may be more costly than
hiring additional staff.
2. Over-specification: Service providers who provide too many details about
how they should perform a service are less likely to be able to deliver the
best service.
3. Outsourcing the wrong processes: Processes that require high levels of
knowledge and are unique for the client organization might not be suitable
for managed services or outsourcing. Provider lock-in can occur when there
is knowledge loss.
4. Wrong retained company: Allowing specialists to manage your service
provider will allow you to be “hands-on, eyes off” instead of the reverse.
IT Staff Augmentation vs. Managed Services: When to Use Each Model
What Makes IT Staff Augmentation Effective?
In certain cases, this outsourcing model will be the most effective. These are the most
important reasons.
You must improve your internal staff: Current expertise is required for some new projects. This
is the reason your IT staff needs to be strengthened.
There are no deadlines: It takes a while to complete the full hiring procedure, from posting jobs
to onboarding. Regardless of the sort of contract, it is simple for mobile app developers for
hire using the staff augmentation approach.
Specific skills are required: You will need to quickly increase your team by hiring skilled
engineers and technicians.
As a bridge to hire: A short-term job may become a long-term relationship with an employee.

6. What is the Right Managed Services Model for you?
• If you’re focused on the future, security, and networking solutions
become more complex as your company grows. Security and networking
options that are quicker and more effective care provided by managed
service companies.
• You can quickly adopt new technology by using managed service
providers. They can provide client-centric solutions that are well-prepared
technical.
• You must ensure compliance by your company. Compliance with
regulations like HIPAA will be ensured by partnering with a managed
services supplier.
• If you are looking to build a strong technical staff, there are several roles
that your staff must fulfill. It may prove costly to fill these roles internally.
IT Staff Augmentation Vs. Comparison of Managed Services
You can consider staff augmentation or managed services when you are
looking for dedicated developers. They are both different. Both involve
outsourcing dedicated developers teams and serve different purposes.
Below are the main differences between IT Staff Augmentation vs.
Managed Services. Managed Services. Let’s take a look.
1. Pocket-Friendliness Vs. Specific Results
The most crucial difference between them is determined by the main
company’s objectives. Based on their preference, businesses can choose
from one of the two options.
Staff augmentation allows for a cost-effective staffing model that
significantly lowers operational costs. This is the best choice for
businesses that want to increase their business scope and remain cost-
effective.

7. Managed Services should be considered if the company has particular
needs. MSPs work with these businesses to accomplish specific goals. MSPs
have complete control over the processes used to achieve desired results.
Staff augmentation is cost-effective, while managed services are more
effective in achieving desired results.
2. Accountability Vs. Flexible Hiring
Both IT outsourcing models offer distinct advantages and disadvantages.
Staff augmentation allows the parent company to quickly conduct the
hiring process, i.e. Staff augmentation allows the parent company to
quickly conduct the hiring process, i.e. on-the-spot and still meet the
project’s requirements. Model flexibility is demonstrated by the parent
company’s ability to hire staffing solutions for short periods. MSPs place
more importance on parent company accountability.
Before entering into any partnership, MSPs create a list with goals and
objectives. MSPs are responsible for all promises and timely delivery.
These two outsourcing models are designed to address different sets of
needs. Staff augmentation is a flexible method of expert supplementation.
Managed services, however, ensure accountability and are accountable for
their parent companies.
3. Short-term Vs. Long-Term Relationship
Another difference is how long they have been associated with the parent company.
The relationship between the service provider and the person seeking staff
augmentation is temporary.
Most of the time, this relationship is transient and fleeting. The relationship enters
hibernation when the parent company asks staff augmentation companies for
assistance for the Android app developers for hire. The relationship is often
resurrected when there is a new need.

8. MSPs on the other side have close relationships with their parent company. This trust is built on
information sharing and mutual trust. MSPs are then dependent on parent companies for technical
advice and information dissemination. The relationship between the MSP and the parent company
is mutually beneficial and long-term for both parties. Staff augmentation is a short-term service,
while managed services are long-lasting.
4. Project Scaling Vs. Operational Scaling
Both managed service and staff augmentation have their advantages
and disadvantages when it comes to scaling. IT staff augmentation
can provide substantial choices for project scaling due to the rising
demand for skilled experts.
It is extremely helpful to add people to the existing workforce to
meet the demands and scalability requirements. It does not offer any
practical solutions for scaling operations and sharing knowledge.
Managed services can, however, provide complete consultation for
scaling operations. It is much easier to add responsibilities to existing
projects than it is to form a task force. Although flexible, it can be
tedious if the latter is used constantly. The two models offer different
scalability options that can be adapted to suit different needs.
5. Authority Vs. Discretion
Both models are equally weighted. However, the main difference between
managed services and staff augmentation is the degree of autonomy and
discretion that the project manager and executor has. The parent company
is in a strong position for process management in the case of staff
augmentation. The parent company has the final word on the matter of
staff augmentation.
But managed services also refer to the transfer of discretionary power.
MSP transfers project autonomy from the parent company to its MSP. The
parent company is responsible for managing staff augmentation, while
managed services are delegated to the MSP.

9. IT Staff Augmentation vs. Managed Services: Which Must You Choose?
Both IT Staff Augmentation vs. Managed Services is beneficial and risky. You need to
evaluate the different aspects of your company to decide which model is best for you.
You must take into account the following:
1. Flexibility
Both IT staff augmentation vs. managed services offers flexibility. Staff augmentation is
best for those who have an in-house team that needs additional support or special
skills. You can also scale your team according to your needs with this outsourcing
model.
Managed services let you perform tasks and develop projects without the need for in-
house staff. MSPs typically require you to pay an annual retainer and may not be able
to scale up or down your team as needed.
2. Costs
Staff augmentation allows you to only pay for the time your supplemental staff works.
This is a good option for both small and medium-sized companies with tight budgets,
as well as large businesses.
Managed services providers, on the other hand, require a steady investment.
Managed services providers bill on a retainer basis, often every year. This can be an
excellent cost-saving solution if you don’t have an IT department. It is typically more
costly than staff augmentation.
3. Control Level
According to experts, in staff augmentations vs. IT managed services, staff
augmentation is more controllable. Staff augmentation allows you to add to your
existing team and can participate actively in the project’s development.
You will communicate with your service management vendor frequently. Your daily
activities and routines are less in your hands. This could lead to poor business
decisions.

10. 4. Security
Both outsourcing models require that you vet all employees. However,
staff augmentation has fewer risks, which can be easily addressed with
an NDA.
Managed services may require that you share sensitive information with
third parties. To ensure you don’t end up paying for projects you don’t
own, you must also address Intellectual Property rights when you
contract a managed service provider.
5. Project Duration
Staff augmentation can be a cost-effective and efficient solution for
short-term projects, low-budget projects, and other projects that need
flexibility.
Managed services, on the other hand, are more suitable for long-term
requirements and the outsourcing of whole projects because they can
help reduce costs over a longer time.
Conclusion
Are you still unsure which outsourcing model is best? Which one is between IT
Staff Augmentation Vs. managed Services? Managed Services
Managed IT services and staff augmentation are the two most popular methods
for software development outsourcing. Each approach has unique benefits,
drawbacks, and dangers.
If you need more control and responsibility, and the resources to manage a
development group, in between staff augmentation and managed services, prior
is the best option. If you prefer to outsource all the work to a development firm,
managed services may be the best choice.
Now that you know what your business is, you can also see how each model
operates. For business growth, choose the best staff augmentation or managed
services company.