Staff Augmentation vs Managed Services

Managed Services vs. Staff Augmentation: How Do They Differ?

 

As CloudSecureTech has discussed, 78% of businesses worldwide are facing a critical shortage of tech talent. This shortage is a large part of the reason why an increasing number of organizations are turning to IT outsourcing. When seeking cost-effective solutions, businesses commonly compare staff augmentation vs. managed services.

Deciding between staff augmentation and managed services hinges on understanding specific business needs to optimize cost and efficiency.

AJ Watson, VP of Technology and MSP Solutions, Resultant

The managed services model adds more IT experts to your team, making it appear similar to staff augmentation. The key difference is in who manages the IT experts. In staff augmentation, you (or an in-house manager) supervises the additional professionals, whereas a managed service provider (MSP) manages their own staff.

There are pros and cons to each approach that may differ based on how you choose to run your business. The rest of this article will take a closer look at these two service models to help you make an informed decision.

 

 

A Closer Look at Staff Augmentation

Staff augmentation allows businesses to fill specific roles with skilled professionals. This model is often used for short-term projects or when organizations need specialized expertise on demand. The business retains full control over the augmented staff and directs their day-to-day tasks.

While it provides flexibility in workforce management, it can lead to variable costs and requires internal oversight and coordination.

When to Choose Staff Augmentation

Your Business Needs Short-Term Help

If your business faces temporary gaps in skills and expertise or needs extra personnel for a limited period, staff augmentation provides the flexibility to bring in skilled professionals quickly. This solution works best if hiring full-time employees or signing a long-term contract may not be necessary.

You Want to Maintain Full Control

Staff augmentation allows you to maintain direct oversight of the augmented staff. You assign tasks, manage their workflow, and keep full control over project execution. Therefore, it’s a suitable choice if you prefer hands-on management.

You Need to Scale Up Quickly for Seasonal Demand

If your business must rapidly expand its workforce for seasonal demands, staff augmentation offers a fast solution. This approach allows you to bring in skilled professionals without the delays of an onboarding process.

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A Closer Look at Managed IT Services

Managed IT services involve outsourcing the responsibility for IT infrastructure to a managed service provider (MSP). The MSP handles a broad range of IT functions, such as monitoring, security, and maintenance.

This model lets your existing team focus on core business operations, with predictable costs, continuous support, and access to a wide range of IT expertise. Unlike staff augmentation, MSPs fully manage IT operations and take a proactive approach to system management and risk mitigation.

When to Choose Managed IT Services

Your Business Needs Long-Term IT Management

Managed IT services are ideal when you require consistent, long-term management of your IT infrastructure. An MSP offers ongoing monitoring, maintenance, and support to ensure your IT systems remain operational without interruption.

You Want a Wide Range of IT Skills Without Hiring Multiple Contractors

Instead of hiring multiple contractors for specialized roles, you can rely on an MSP to deliver comprehensive IT services. Most MSPs employ a wide range of experts to cover many areas of technology. You’ll gain access to all of these professionals with one simple, regular fee.

 

 

You Prefer Predictable Costs

If cost predictability is important for your business, an MSP provides clear, structured pricing that avoids the variable costs associated with staff augmentation. This makes it easier to manage your IT expenses over time. Companies working with an MSP report that this predictable budget contributes to a potential 1–50% cost savings annually.

Your Internal Team Is Stretched Thin

Unlike staff augmentation, where you still manage the additional personnel, an MSP fully handles IT operations. This approach ensures your IT needs are fully covered without overburdening your management staff—a huge benefit considering that managers generally spend 20% of their time on people management for every two employees reporting to them.

Staff Augmentation vs. Managed Services: An Overview of Key Differences

We’ve provided the following chart for an at-a-glance comparison of the two services. This chart can help you make an informed decision that aligns with your strategic goals and IT requirements.

 

Think Managed Services Are Right for You?

Another key advantage of opting for managed services is the fact that your MSP can cover most of the work that augmented staff can do. If you need both long-term and temporary assistance, managed services are likely the more cost-effective option.

If you’ve decided an MSP is the right choice, consider Resultant. Our full-service IT managed services provide support, monitoring, consulting, and cybersecurity. We also maintain a rigorous in-house knowledge base that allows our IT helpdesk team to provide a 30–50% higher first-call resolution rate compared to others.

 

Reach out today to learn more about Resultant.

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