Key Differences between Staff Augmentation and Managed Service

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Key Differences between
Staff Augmentation and Managed Service
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Demand for qualified IT specialists and skilled
laborers is growing faster than ever. Digital
transformation also pushes IT enterprises to
look for optimal solutions to meet critical
projects. To grow their business faster, IT
companies go for two of the best models such as
staff augmentation and managed services. However,
companies dont want permanent or long-term
resources for short-term projects. This is why
enterprises trust staff outsourcing models. The
staff augmentation model means adding external
resources to the existing team. Managed service
means a third-party agency that manages
customers IT requirements, and expected
outcomes.
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Comparison between staff augmentation and managed
services
Comparison Staff augmentation Managed Services
Best for Short-term projects Long-term projects
Risk Client Service provider
Engagement Full-time Part-time/full-time
Processes Responsibility to giving an input Responsibility to delivering an outcome
Management Client Service provider
Pricing level Pricing based on availability and days or hours worked Pricing based outcomes and service levels
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RETAIN PROJECT CONTROL
STAFF AUGMENTATION AND ITS PROS
With the IT staff augmentation model, IT
enterprises can retain project autonomy. When
enterprises choose the staff augmentation model,
they can get some benefits.
The staff augmentation service helps IT
companies to keep complete control of projects.
LESSER LEGALITIES
REDUCE COST AND INCREASE OUTPUT
Staff augmentation agencies take care of their
employees taxes, payroll, and other benefits so
IT companies.
Cost-effectiveness is a primary reason most IT
enterprises look to outsourcing intentionally.
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CONS OF STAFF AUGMENTATION MODEL
SUITS ONLY FOR SHORT-TERM IT SUPPORT Staff
augmentation is a phenomenal solution for
small-scale IT companies only. Most large-scale
IT companies always keep bigger projects in hand
so that they dont go for staff augmentation
models.
REQUIRES MANAGEMENT RESOURCES Staff augmented
resources will be under the management of the IT
company. It might be the right choice when
companies dont have a vision of huge
achievements in the future.
EFFECTIVE TIME MANAGEMENT Managed service
companies contain a lot of skilled resources so
choosing managed service outsourcing model helps
complete IT processes quickly as possible.
MANAGED SERVICE AND ITS PROS A company that
outsources some IT processes to another company
is called managed services. Its also a popular
outsourcing model.
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Cons of Managed Service
HIGHER COST SINCE MANAGED SERVICE MODEL COVERS
BOTH PROJECT MANAGEMENT AND IT FUNCTIONS, THE
EXPENSE OF HANDING OVER PROCESSES TO OTHER IT
COMPANIES MAY BE HIGHER THAN THE STAFF
AUGMENTATION MODEL. LOSS OF AUTONOMY MANAGED
SERVICE IS NOT THE BEST CHOICE WHEN IT COMPANIES
NEED FULL CONTROL OVER THE PROJECTS. IT
INDUSTRIES CAN ONLY EXPECT OUTCOMES FROM A
REPUTED MANAGED SERVICE CONCLUSION IN THIS
DIGITAL ERA, IT COMPANIES WANT TO COMMIT TO
SUITABLE SOFTWARE OUTSOURCING MODELS TO MEET
THEIR PROJECT REQUIREMENTS. BOTH STAFF
AUGMENTATION AND MANAGED SERVICES ARE WORKING
WELL. MOST SMALL-SCALE COMPANIES WOULD LIKE TO
CHOOSE A STAFF AUGMENTATION MODEL WHICH IS
SLIGHTLY BETTER THAN MANAGED SERVICES.
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