Differences Between Staff Augmentation and Managed Services

The evolving technology and growing IT inclination have stirred up a new debate in the business world. Companies are arguing for and against permanent recruitments and talent acquisition. The culture for remote work is also on the rise, giving way to staffing models like outsourcing, staff augmentation, Outstaffing, and managed services. These are effective growth models for meeting an organization’s staffing needs. Two new-emerging and highly-popular models in this arena are staff augmentation and managed services. But often, the debate is between which staffing model best suits your needs and company. Both models are different. However, we need to first understand each model before divulging the differences.      

Staff Augmentation  

It is the process of hiring external resources for your internal staff. This process must not be confused with the regular hiring and recruitment process because staffing, in this case, is usually followed by a purpose and for a certain period of time. They work alongside your in-house resources and offer complete collaboration and communication. But they are not your permanent in-house resources. They are fully integrated with your in-house workforce to collaborate on essential or side projects. This is different from outsourcing which encourages a completely autonomous and remote working culture. It is apt for time-sensitive projects that have aggressive deadlines. Thus, they incur a lower cost and save time because of reduced hiring processes and efforts. 

Managed Services  

Another opportunistic and growth model for your business could be managed services. The company transfers control and autonomy over business management systems to other parties in this system. When we talk about managed services, we relinquish control to other hands, similar to outsourcing techniques. In this arrangement, the client company gives away management responsibilities, monitoring, accountability, and control of the resources to another company. The company delegates major business decisions and tasks to another entity. The other company takes the responsibilities of running these business-crucial tasks. 

Difference Between Staffing External Talent and Managed Services  

Control vs. Management  

Staffing: For the staff augmenting model, a client provides the company’s external resources that work alongside the in-house resources. 

Managed services: MSPs or managed services provider assumes complete control over the execution of major business functions by delegating duties like monitoring and controlling resources. 

SLA Commitments  

Staffing: SLAs or service level agreements commitments are non-existent in the output. 

Managed services: On the contrary, in a managed scenario, SLA commitments do exist and are put in place. 

Transition  

Staffing: There is no set pattern for augmenting staff, and it does not follow any transition hierarchy or structure. It varies from company to company depending upon the need of the IT department and skills. 

Managed services: Since the matter is related to the complete delegation of duties and responsibilities of management, the entire process and transition are fully documented. It is not only trained but follows a strict hierarchy of events.  

Risk Assessment  

Staffing: The company that hires (client) assumes all the risk because it takes in the employee or hired resource into its system. It is prone to vulnerability and risk depending upon the situation. 

Managed services: MSP or service provider manages and takes responsibility for all the actions and risks associated with this management.  

Operational Model  

Staffing: There is no apparent change in the operational model or assets when it comes to hiring outside resources for IT expertise. The operational assets are handled, monitored, and operated by the parent company.  

Managed services: Since MSP handles everything from risk to management, it also takes complete control of the operational assets. The operating model is dealt with strictly by the MSPs. 

Tools and Methodology 

Staffing: The existing tools, processes, and methodologies are still in place. The parent company dictates these tools and processes.  

Managed services: Managed service provider takes control and care of the tools and processes. They handle everything from their end instead of relying on or seeking assistance from the client.  

Conclusion 

In a nutshell, it is pretty evident that managed services’ style of functioning suits those companies that lack technical leadership. They seek assistance from third parties who provide the necessary management along with leadership, guidance, decisions, and control over pivotal business decisions. Whereas in IT staff augmentation, things take a 180-degree shift as the management still resides with the client, and the supplier only provides the resources for a certain task or project. 

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