Implementing Digital Transformation
Staff Augmentation vs. Managed Services
In-house or out-of-house talent – when and how to choose
IT departments that need to execute new projects often look to outsourcing to efficiently reaching their goals. However, when it comes to IT outsourcing, it is not quite the same across the board. Firms can either choose a “staff augmentation” approach where outside workers join the existing team, or a “managed service” framework that matches traditional project-centric outsourcing. Let us discuss both models and how to choose the best fit for your business.
The Staff Augmentation Approach:
With staff augmentation, companies bring qualified workers in-house to work side-by-side with full-time employees. Firms that provide these staff often offer consultative services where they can help a business assess its needs. For example, they might need help integrating data sources with CRM or SQL specialists.
Consider these core benefits of the staff augmentation approach:
Despite the potential for reduced costs and other related benefits, staff augmentation isn’t always the right approach. When augmentation becomes a permanent fixture within a business, then its value is often decreased when compared to a managed service setup. Augmentation is better suited to short-term projects with a defined need and endpoint, which keeps costs in check and leverages the enhanced ability to flexibly meet demands.
Here are some drawbacks of long-term staff augmentation arrangements:
The Managed Service Approach
A managed service (traditional IT outsourcing) approach can provide IT with a solution that involves less training and internal maneuvering. It’s especially attractive when compared to longer-term augmentation arrangements. A managed service offers multiple benefits including:
With managed services, the risks involved in meeting project goals and timelines are held by the outsourcer, so they have incentives to complete projects to satisfaction and on deadline. Companies should be wary of instituting “augmentation by default” and review the benefits of managed services, especially for longer-term engagements.
The risks associated with a managed service include reliability and flexibility concerns. However, working with a trusted and experienced partner such as TechBlocks can help to eliminate these concerns. The main point here is to do your homework before choosing a provider!
Looking for an IT partner to help navigate the augmentation vs. managed services landscape? TechBlocks develops sound outsourcing strategies that are tailored to unique business needs. Visit www.tblocks.com to learn more.
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