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Why Managed Services and Why Not Staff Augmentation?

How managed services can be better solution than staff augmentation for your business?

By Amit AgrawalPublished 2 years ago 7 min read
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The digital revolution of the modern society is complex and challenging in terms of the demands that enterprises must fulfill. What is the best way to stay on top of the trend when there is a clear absence of IT professionals? Where can you find the necessary digital skills even if ongoing projects don't involve hiring permanent employees? Answering such questions drives enterprise management to different options. There aren't many. In general, they are two standard models. Managed IT Services and staff augmentation services, that are the most widely-accepted methods of adding an IT component to an enterprise's infrastructure. Let's look at managed IT services and staff enhancement.

Since the need to use IT outsourcing has been the subject of media for the past 10 years, the debate that has been raging between managed services and staff growth is now becoming less severe. The advancements in development technology tools for project management and communication tools have allowed companies to rapidly increase the size of their development teams using experts from all over the world.

How IT Outsourcing is Defined?

Staff augmentation in IT is defined as identifying the need for niche talent in an organization and filling it up with an expert with high-level skills for a short time. It is not a long-term job but a temporary replacement to fill a position needed for a specific job or project.

If, for example, you're a mobile application development company and one of the main projects that have been commissioned will require blockchain, staff growth could allow you to select a specific developer for the project. This also applies to project managers and other roles that a company needs.

Pros of Staff Augmentation Model

Staff augmentation is an excellent method to satisfy your requirements for a super-specialist in the least amount of time. The possibility of saving money is a welcome advantage in any situation. Are you already impressed? Have a look at all the benefits in greater specific detail.

#Increased Output with Reduced Costs

New employees hired to join your team can add costs to your wallet since you will pay for office space and hardware, software, and other items related to on-site employees.

IT staff augmentation services allows the remote work of global talent sources to get the same or better results at a less price. Since IT tasks can be outsourced globally to countries with a lower cost of living, you'll be able to reduce development costs without compromising the product's quality.

#Access to Larger Talent Pool

There are examples when your internal team does not possess the skills or expertise needed for a particular task. By boosting staff, companies have access to a vast talent pool of highly skilled designers, software developers, project managers, and much more.

This minimizes the risk of interruptions to the project since those with the required expertise can be hired quickly. They can begin work, and work can be carried out to finish on time.

#Easy Employment

You sign the contract with one or more employees to provide you with the needed abilities during development.

#Extreme Flexibility

Are you facing a skills gap in your staff? IT staff augmentation is the ideal answer for you. It is possible to hire people with a range of abilities and include them in your project's development. Because you are in complete control of the process, you can oversee every element of your process to ensure it's going in the proper direction.

#Highly Scalable

If you put in the right amount of work in your company at the right time, massive expansion is expected. The requirements for staff will change as your business grows. Staff augmenting services are highly scalable and will be able to keep up with the growth of your company's growth. You can choose to hire a whole team of experts or one developer to meet your needs.

What is Managed IT Services Model?

Managed IT services are a different well-known outsourcing option. Your company can outsource IT-related processes to another business through managed IT services. The IT company is bound to adhere to specific guidelines and standards set by parent companies. However, it is managed IT service company is responsible for the management of IT personnel, management, and the execution of projects.

When creating contracts between the parent company and the IT firm, we will agree on the deliverables or desired outcomes. Managed IT services are suitable for businesses that require specific technical results but lack the resources required to be associated with the procedure. This type of outsourcing is also an ideal choice for businesses with long-term growth requirements. Let's take a look at the advantages of managed IT services.

Benefits of Managed IT Services

This rise in demand can be explained by the fact that many small and medium-sized enterprises (SMBs) require the most up-to-date technology to keep an advantage in their markets and sustain their expansion but cannot afford IT budget funds to achieve the objectives.

The positive aspect is that managed service allows SMBs to compete at the same levels as enterprises and middle-market companies without extending their capabilities. This is just one benefit of the managed service model.

#Low Cost

From a financial standpoint, from a cost perspective, one of the main advantages of managed services is that they reduce labor costs and the expense of training and hiring new IT personnel. The capability to make the skills you require on a scaleable basis is highly appealing, and a majority of MSPs offer a hybrid approach that includes offshore and onshore resources. This reduces the effective rate by a significant amount and broadens your resources base.

#Avoid Expensive Downtime

Another advantage of managed service is somewhat instead of sitting and watching for the issue to arise, MSPs take a proactive approach to maintenance. MSPs use remotely monitored and managed services to detect, diagnose, and resolve potential issues before they can become an issue. Because network outages could cost companies as much as $5,600 per minute, approximately $300k per hour, it's clear that the outsourcing of MSPs can pay for the service.

#Gain a Reliable Point of Contact

Choose to partner with an MSP instead of working with a recurring team of individuals. You'll have a dedicated team who understands your business and your business's needs from top to bottom, led by a singular customer satisfaction director (CSM). Your CSM is an experienced, reliable person to contact who will act as a mediator between the vendor and you and manage any issues. Suppose your CSM is unavailable due to reasons of any kind (after every person deserves an off day). In that case, there's an established route to escalate and a backup contact available to take over, so you'll always have someone to call.

#24/7 Service

Managed IT solutions ensure that you won't just receive a check-in now and then. It's a 24-hour service that will ensure that your IT systems function efficiently every day. Whatever the size of the issue, you may want to consult managed IT solutions for help. You'll be able to rest at night knowing that everything will be considered.

Sometimes, you don't realize there was an issue. In a matter of minutes, your IT-controlled support will be able to get everything running smoothly once more. Any minor glitches or bugs that are a nuisance will be addressed promptly.

#Access to the Latest Technology

If your staff is overloaded with trying to put out fires or working on BAU projects, how do they ensure that your company is as creative as it could be? In addition to saving your in-house team time, top MSPs will keep up with the latest trends in the industry.

They'll be aware of the latest technology and help you decide which software to invest in (and the areas of your business it will assist the best) and which ones aren't.

Why Choose Managed Services over Staff Augmentation?

We are back to the main issue! Why businesses should consider management services instead of staff increases. As you've already experienced the advantages managed services offer your company, this question has already been addressed.

With a software staff augmentation model, it is possible to hire temporary staff, and then disengaging when the needs are fulfilled can be more than offset the cost of hiring permanent employees.

In addition, staff augmentation needs little contracting, is based on an easy cost model (rate times the number of hours spent), can be scaled up or down rapidly, and does not have a significant impact on the operating system of an IT staff augmentation company. Staff augmentation could be a problem when it becomes an operating model that lasts forever. As a long-term option, it doesn't have any of the long-term advantages of other external sourcing models, including managed services (outsourcing). It could cause a host of risks and could even destroy the value.

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