Many IT product firms will eventually move away from conventional outsourced services and look for more effective ways to expand their company. Choosing the best technique for bridging internal resource shortages and reducing costs may be difficult at this stage.
As a result, we’ll speak about the distinctions between staff augmentation and managed services today, so you can figure out which choice is ideal for your company.
Staff Augmentation in context
Staff augmentation is a BPO technique that involves integrating outsourced IT expertise into your in-house team to cover temporary skill shortages. Because you hire remote developers who are formally employed by another organization, it is closely connected to the phrase “IT outstaffing.”
What Are Managed Services?
The managed services model necessitates the involvement of a strategic partner with a broad scope of responsibilities. A provider handles all IT tasks, provides business advice, and manages a variety of operational procedures, such as recruiting, infrastructure maintenance, monitoring, and reporting.
People often mix up managed services with record label employers. To be clear, an employer of record is an external business that handles all human resources transactions, such as payroll, tax calculations, and benefits. This service provider may be able to help you with other issues as well as lessen your paperwork.
Managed Services vs. Staff Augmentation Choosing and comparing
Personnel augmentation
Due to a dearth of available human resources to handle their projects, IT organizations often pick a staff augmentation approach. Clients that use this form of BPO service get the knowledge and skillsets they need to achieve their business objectives. Furthermore, staff augmentation businesses can quickly locate the developers your organization needs – or say their goodbyes once the assignment is completed. As a result, executives may take advantage of the model’s flexibility by scaling the team up or down as needed. Another important aspect to note is that, unlike conventional outsourcing, the client organization maintains control over capacity and employee selection. As a result, by increasing your employees, you may gain control of the issue and have more direct contact with the contractors.
If you want to choose this type of cooperation, pay attention to Uvik IT staff augmentation services, because this is a proven company that will definitely be able to fulfill your business needs.
When it comes to the dangers of an augmented workforce, it’s important to emphasize the lack of commitment you’ll obtain from external workers. They don’t feel like they own your product, thus they’re unlikely to be concerned about the future of your company. Furthermore, when viewed in the long run, the cost-effectiveness of such a paradigm is questioned. Staff augmentation is ideal for short projects, but it comes at a cost when working with a vendor on a long-term basis. To keep the developers on board for a longer period of time, you will be required to pay a service charge, commissions, or a buy-out cost.
Managed Services
Collaboration with a managed service provider has its own set of advantages. For example, it allows you access to a wide variety of skills and expertise that align with your objectives. Furthermore, such a partner not only handles hardware or software but also assists in the development of a whole company concept. Close contact with a customer and regular consultations are used to accomplish this job. As a result, this approach is seen as a time-saving option.
It does, however, have certain drawbacks. The first and most serious risk associated with managed services is the provider’s dependability. It’s possible to lose control over transferred processes, particularly the most critical ones, just as it is with outsourcing. Finally, remember that delegating a significant deal of control means you’re liable for all the unforeseeable consequences. Furthermore, this approach isn’t known for its cost-effectiveness. Make no mistake: working with an MSP is costly owing to upfront expenditures and ambiguous pricing, which lumps all payments into a single category dubbed “provider charge.”
Conclusion
In a nutshell, the debate over IT managed services vs. staff augmentation has no clear winner. These are models that meet a variety of business needs and differ in terms of scaling options, duration of the BPO partnership, and level of control.
