Two of the most requested services among companies when they want to strengthen their team of technology experts are staff augmentation and managed services. But which one is the right fit? Choosing between managed services or staff augmentation is not a decision to be taken lightly, and that’s why the best thing to do is to be informed before making a choice.
Before diving into the differences between both, let’s clarify what each one means. IT staff augmentation, as the name suggests, happens when a company hires, through outsourcing, a team of engineers or technology experts to take on a project or specific tasks within an IT project for a limited period of time.
On the other hand, managed services involve hiring an IT service provider to manage certain operations within a company that require specialized and competent technological support. Managed Services are a very interesting option for businesses, as they allow them to address their needs in a flexible and personalized way in areas such as cloud computing, IT infrastructure, and IT security.
Differences between Staff Augmentation and Managed Services
1. Control over the project
- Staff Augmentation: You maintain control. External professionals join your team, but the direction, methodology, and priorities remain under your management.
- Managed Services: Control is assumed by the provider. You define the objectives, but execution, management, and deliverables are the responsibility of the contracted company.
2. Duration of the commitment
- Staff Augmentation: Ideal for temporary or medium-term needs (for example, covering a sprint, accelerating a module, or filling in for a specialist).
- Managed Services: Better suited for long-term relationships where continuity is required (support, monitoring, infrastructure, cybersecurity).
3. Flexibility and scalability
- Staff Augmentation: Very flexible. You can increase or reduce staff depending on the state of your project.
- Managed Services: Scalability exists, but it depends on contractual agreements. Negotiation with the provider is required for changes in scope or volume.
4. Costs
- Staff Augmentation: You pay per hour or based on the professionals’ time. Costs may vary if the project is extended.
- Managed Services: More predictable costs, generally under a monthly or annual fixed-rate scheme.
5. Responsibility
- Staff Augmentation: You are responsible for the result. The provider only gives you the talent.
- Managed Services: The provider assumes responsibility for the entire service, with SLAs (Service Level Agreements) that guarantee performance and compliance.
6. Speed of integration
- Staff Augmentation: Talent integration is usually quick, and they immediately adapt to your team and processes.
- Managed Services: It may require more time at the beginning (scope definition, contracts, SLAs), but afterward, it operates autonomously.
7. Typical use case
- Staff Augmentation: You need to reinforce your internal team. You require experts in specific technologies. You want to maintain full control over the project.
- Managed Services: You want to delegate entire operations. Your team does not have the management capacity or specialization in certain areas. You are looking for continuous support and long-term stability.
How to know which one you need?
When deciding between expanding your team or hiring external services, the essential thing is to be clear on how long the work will last. If your company has a project that won’t extend too long, say between three and six months, the best option would be staff augmentation, as it allows you to quickly find experts without extensive commitments.
On the other hand, if what you are looking for is constant and stable support, with a service agreement that lasts more than a year, the most sensible option is managed services, as they ensure support and consistent results.
It is also crucial that you analyze how well you can manage things internally. If you have a strong team with capable technical leaders and experience managing projects, staff augmentation will work wonderfully, as you’ll be able to add external talent seamlessly into your workflow. However, if your team lacks experience or you prefer your leaders not to have so many responsibilities, choosing managed services will give you the support of an expert company that will take care of much of the work.
Rootstack can help you with whichever of these two services you choose. We have the experience to advise you, work together, and lead the project to a successful outcome. Contact one of our consultants so they can answer any questions you may have.
We recommend this video
