Staff Augmentation vs. Other IT Services

Moving From Staff Augmentation to Managed Services Model: A Comprehensive Guide

In the world of business, technology plays a critical role in driving growth and innovation. Companies need to stay ahead of the curve by constantly updating their technology and processes. This creates an increasing demand for IT professionals and services. However, hiring a full-time team of IT experts can be a daunting and costly task for organizations, especially for small and medium-sized businesses.

In recent years, the trend towards IT outsourcing has grown significantly. Staff augmentation and managed services are the two most popular models of IT outsourcing. While both models offer a range of benefits, managed services have become increasingly popular because of their comprehensive and proactive approach to managing IT services. This article offers an in-depth guide to help your organization make the transition from staff augmentation to managed services smoothly.

Understanding Staff Augmentation and Managed Services

What is Staff Augmentation?

Staff augmentation is a popular approach used by organizations to manage their IT staffing needs. It involves hiring temporary IT professionals on an as-needed basis to support specific projects or tasks. Staff augmentation can be an effective way to fill gaps in an organization's IT skills without committing to hiring full-time staff.

One of the benefits of staff augmentation is that it provides organizations with access to specialized expertise that they may not have in-house. For example, if an organization needs to implement a new technology, they can hire a team of experts with experience in that area to help them complete the project.

Another advantage of staff augmentation is that it provides flexibility around staffing needs. Organizations can hire IT professionals on a short-term basis, which can be more cost-effective than hiring full-time staff. Additionally, organizations can quickly scale up or down their IT staff as needed, depending on the demands of their business.

What are Managed Services?

Managed services involve outsourcing a comprehensive set of IT services to a third-party service provider. Instead of hiring IT staff separately, organizations can outsource the entire IT function to a service provider, who takes charge of all IT-related tasks and responsibilities.

Managed services providers (MSPs) take a proactive approach to IT management, ensuring that IT systems run at peak performance levels. They monitor network and system performance, identify potential issues, and take steps to mitigate threats before they cause damage to the organization's data and systems.

One of the key benefits of managed services is that they offer cost savings. Instead of hiring a full-time IT staff, organizations can outsource their IT functions to an MSP, who can provide the same level of service at a lower cost. Additionally, MSPs provide regular reports to the organization to ensure transparency and communicate progress and results achieved.

Key Differences Between Staff Augmentation and Managed Services

While staff augmentation and managed services are both popular approaches to managing IT staffing needs, there are some key differences between the two.

  • Staff augmentation provides temporary IT staffing for specific tasks, while managed services offer a comprehensive, ongoing IT solution.
  • With staff augmentation, the organization remains responsible for IT management, while with managed services, the MSP is responsible for all IT functions.
  • Managed services offer cost savings and the ability to work with a team of experts, while staff augmentation provides flexibility around staffing needs.

Ultimately, the choice between staff augmentation and managed services will depend on the specific needs of the organization. Organizations that need temporary IT staffing for specific projects or tasks may find that staff augmentation is the best approach. However, organizations that want to outsource their entire IT function and benefit from cost savings and access to a team of experts may find that managed services are the better option.

Evaluating Your Organization's Needs

Transitioning to a managed services model can be a daunting task for any organization. It requires a careful evaluation of your organization's needs and goals, and a comprehensive understanding of the different IT outsourcing models available. In this article, we will explore some of the key factors to consider when evaluating your organization's needs.

Assessing Your Current Staffing Situation

Before making any decisions about IT outsourcing, it's essential to evaluate your organization's current staffing situation. This involves assessing whether your current team has the expertise required to manage your IT functions, and whether they can keep up with the demands of the organization.

If you find that there is a shortage of IT skills within your organization, it might be time to consider using staff augmentation to fill in the gaps. Staff augmentation involves hiring external IT professionals to work alongside your existing team, providing additional expertise and support as needed.

Identifying Your Business Goals and Objectives

Identifying your business goals and objectives is another important step in evaluating your organization's needs. It's essential to determine what your organization wants to achieve and explore how technology can support these goals.

Managed services can provide organizations with the necessary expertise, tools, and resources to support business goals. By outsourcing IT functions to a third-party provider, organizations can focus on their core business activities while leaving IT management to the experts. Staff augmentation, on the other hand, can provide a more targeted approach as needed, allowing organizations to bring in external expertise for specific projects or tasks.

Determining the Right Model for Your Organization

Once you have assessed your staffing situation and identified your business goals and objectives, it's time to determine the right IT outsourcing model for your organization. This involves weighing the pros and cons of each model and mapping them to your organization's goals.

Managed services provide ongoing support and expertise, allowing organizations to benefit from the latest technologies and best practices. Staff augmentation, on the other hand, provides flexibility and scalability, allowing organizations to bring in external expertise as needed.

Ultimately, the decision about which IT outsourcing model to choose should align with your organization's goals and priorities. By carefully evaluating your organization's needs and considering the different outsourcing models available, you can make an informed decision that will help your organization achieve its goals and stay ahead of the competition.

The Transition Process: Moving from Staff Augmentation to Managed Services

Moving from staff augmentation to a managed services model is a significant step for any organization. The transition process needs to be well planned and executed to ensure a smooth and successful outcome. Here are the five steps to help manage a successful transition.

Step 1: Analyzing Your Current Staff Augmentation Contracts

The first step in the transition process is to analyze your current staff augmentation contracts. It's essential to understand the roles and functions that are currently outsourced and determine how these will be handled in the future with a managed services provider. This analysis will help identify any gaps or challenges that need to be addressed before the switch to a managed services model can happen.

During this analysis, it's important to consider the impact on your current staff. Some may feel uncertain or even threatened by the change. It's crucial to communicate with your staff and provide them with the necessary support to ensure a smooth transition.

Step 2: Selecting the Right Managed Services Provider (MSP)

The selection of a managed services provider is a critical step in the transition process. Research potential providers and evaluate their skills, track record, and experience. Engage with the provider to assess their compatibility with your organization. It's essential to engage with a provider that understands your organization's goals, cultures, values and can customize solutions that fit your specific needs.

When selecting an MSP, it's also important to consider their ability to provide ongoing support and maintenance. A good MSP should be able to proactively identify and address issues before they become major problems, ensuring that your organization's systems and processes run smoothly.

Step 3: Defining the Scope of Services

The scope of services defines the exact services that the managed services provider will be responsible for. This may include managing servers, network infrastructure, applications, and data security. Define the scope of services to ensure both parties understand what is expected of them, and there is a clear delineation of responsibilities.

It's important to consider the level of service that your organization requires. For example, if your organization relies heavily on technology, you may require a higher level of support and maintenance than an organization that relies less on technology.

Step 4: Transitioning Your Workforce

The transition of your workforce from staff augmentation to a managed services model needs to be carefully planned and executed. Identify the staff that will transition to the MSP and identify those that will be reassigned. Define transition timelines, communication plans, and training requirements to ensure a smooth transition for all staff.

During the transition, it's important to provide your staff with the necessary training and support to ensure they are comfortable with the new systems and processes. This will help to minimize any disruption to your organization's operations.

Step 5: Monitoring and Evaluating the Success of the Transition

The final step is to monitor and evaluate the success of the transition. Define key performance indicators (KPIs) and metrics to track progress and measure success. Regularly review these KPIs to identify areas for improvement and to optimize MSP performance continually.

It's important to maintain open communication with your MSP to ensure that they are meeting your organization's needs. Regularly review the scope of services to ensure that it remains relevant and meets your organization's changing needs. By monitoring and evaluating the success of the transition, you can ensure that your organization is getting the most out of its MSP.

Benefits of Adopting a Managed Services Model

Adopting a managed services model provides a range of benefits for organizations, including:

Cost Savings and Predictable Budgeting

Managed services providers offer predictable, fixed-fee pricing models that allow organizations to budget accurately for IT services. By outsourcing IT to a managed services provider, organizations can also benefit from economies of scale and reduce the overall cost of IT management.

Access to a Wider Range of Expertise

Managed services providers bring a wide range of IT expertise and experience to the table. Organizations can benefit from access to top-quality resources and skills that may not be readily available in-house. This ensures that IT functions are optimized and that organizations stay ahead of the curve in terms of technology and innovation.

Improved Focus on Core Business Functions

Outsourcing IT to a managed services provider frees up valuable staff time and resources for other core business functions. Organizations can focus on their strengths, such as product development, customer service, and overall strategy, and leave the IT management to experts, thereby increasing overall efficiency.

Enhanced Scalability and Flexibility

Managed services providers offer flexible, scalable solutions that can evolve and adapt as businesses grow and change. Organizations can take advantage of the latest technology innovations and solutions, and ramp up or dial down services as needed, providing flexibility and agility in an ever-changing business landscape.

Better Risk Management and Compliance

Managed services providers employ experts in data security and compliance, ensuring that an organization's data and IT systems are secure and compliant with regulations. MSPs continuously monitor and assess the organization's security measures to minimize the risk of data breaches and other cyber-attacks.


In conclusion, moving from staff augmentation to a managed services model requires careful planning and execution to ensure success. By understanding the key differences between these two models, evaluating your organization's needs, selecting the right managed services provider, transitioning your workforce, and monitoring and evaluating the success of the transition, you can move to a more efficient and cost-effective IT model that will support your organization's growth and innovation.