IT outsourcing has become a popular choice for lots of companies and there are a bunch of different reasons for that, from the reduction of costs to service delivery improvement. Not to mention revenues IT outsourcing market brings. Today we are going to overview the two main IT outsourcing models, Staff Augmentation and Managed Services. Though some may think of these two approaches as similar or even interchangeable, there are clear differences between them which one needs to know. So, if you are in search of external staff to help you with a project, look through our comparison of Staff Augmentation vs Managed Services and decide which one is better for you.
Staff augmentation is one of the most sought-after outsourcing strategies in recent years. It gives companies an opportunity to hire narrowly-focused tech professionals all over the world to augment their in-house staff temporarily. The strategy is beneficial if one works on a certain project requiring additional skills that aren’t needed on a regular basis. What is more, a parent company reserves the right to manage outsourced staff directly. Not only is staff augmentation cost-effective, but it is also time-saving since a recruitment drive is held by the service provider. However, this approach is beneficial mostly as a short-term solution.
Another well-known outsourcing model in the IT-sphere is called managed services. Within this model, a company hands over responsibilities for management, IT operations and process delivery to third-party organizations, known as Managed IT Solutions Providers (from now on the MSPs).
The managed services model is responsible for delivering results that have been defined beforehand. On top of that, the service providers receive full control over a project which means they take care of everything from maintenance of the system to constant monitoring and support. Unlike staff augmentation, managed services is a great approach if a company needs long-term external assistance. It is also worth mentioning that a parent company that opts for this kind of outsourcing service loses control over the project since it is delegated to the MSP.
Now that you got acquainted with these two popular outsourcing solutions, it is time to single out the benefits and shortcomings of each. We all know well that everything has its drawbacks, and these business strategies are no exception. By having weighed all the pros and cons, you will be able to make the right decision and go with a model that will be the most beneficial for your business.
Having read that, take a quick look at the things you need to do when comparing staff augmentation vs managed services:
So, what is the difference between staff augmentation and managed services? One is more appropriate as a short-term solution while the other one follows a long-term relationship between a parent company and an MSP. One allows a high degree of autonomy, the other one takes it away. The question which you have to ask yourself is which model meets your business objectives better. Both outsourcing models have their own advantages and disadvantages, and they both have enough potential to help IT companies reach their goals and flourish. Look through the benefits of each solution and make a thought-through decision based on your needs and expectations. We can’t define a winner in the battle between managed services model vs staff augmentation, but you can!
Yojji successfully delivered the project within schedule. They demonstrated excellent project management via weekly sprint demos and promptly made adjustments based on the client's feedback. Their responsiveness and collaborative attitude were key elements of their work.
Yojji was an instrumental part of the client’s team, working closely with them to achieve the product’s success. The team was very collaborative and timely, and their performance was amazing. Additionally, their resources were experienced, professional, and enjoyable to work with.
Yojii is impressive both in quality of development work as well as their commitment. Strong focus on delivery, highly technical personnel, flexible approach that allows for rapid development. Strong processes that allow for solid controls.
We’re very happy with the way that Yojji works, which is why we’ve spent so much money and engaged them for such a long time. We treat them as employees in regard to responsibilities and expectations, and they haven’t disappointed us.
As a company, we find Yojji to be excellent development partners - we cannot recommend them more highly and will be very happy to continue working with them in the future.
They are really nice people with excellent technical backgrounds.
We used Agile project management methodology and were in contact with the team and project manager daily.
They all had a super positive outlook and were dedicated to getting the work completed to a high standard.
Yojji has delivered an accessible product with thorough consideration for the client's requirements. Users have commented on the platform's user-friendliness and speed. Moreover, the team is easy to communicate with and provides frequent updates. Their development and design skills are impressive.