In 2023, 78% of businesses reported a tech talent shortage, which isn’t changing in 2024. It’s no wonder that so many are choosing to outsource their IT functions. Finding new hires takes time, and most businesses facing these shortages need the help now. Two options you may be comparing if you are in this position are managed services vs. staff augmentation.
Choosing a complete technology partner that covers more of your tech needs not only simplifies IT management but also enhances overall business operations and reduces downtime.
– Roger Veach, President of AxiaTP
Staff augmentation is often the quick, go-to choice. That’s because many business owners are familiar with the model and may also be using it to supplement non-IT functions at their business. However, managed IT services are growing in popularity due to their simple, cost-efficient service delivery model.
If you’re unsure which one is the best choice for you. This article will compare and contrast staff augmentation vs. managed IT services. We’ll explore what each one is and when it might be time for you to make the switch from augmentation to managed IT.
What is Staff Augmentation?
Staff augmentation is a business strategy where companies outsource skilled professionals on a temporary basis to enhance their existing team. This approach allows organizations to add specialized skills to their team for specific projects or during peak work periods without hiring full-time employees.
Staff augmentation services provide professionals with the skills and expertise that companies need for these short-term projects or peak periods. While this can be a lower cost choice in the short term, it can become more expensive in the long run. That’s because you’ll need to re-outsource every time you need to augment services again.
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What Are Managed IT Services?
Managed IT services allow businesses to offload their IT tasks to a specialized company known as a managed services provider (MSP). This arrangement helps improve business operations and reduce downtime. An MSP handles various IT responsibilities like network management, software and hardware support, and cybersecurity, so that the in-house team can focus on core business tasks.
In 2024, it is estimated that 73% of companies have implemented managed IT services in some capacity. This isn’t surprising when you consider that 50% of companies who work with an MSP save 1-24% in annual IT costs. Most providers offer their services for a flat monthly fee which will drastically reduce long-term costs compared to consistently rehiring staff augmentation.
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Would It Ever Make Sense to Use Both Staff Augmentation and Managed Services?
A company may choose to use both staff augmentation and managed IT services. However, it’s unusual for a business to use both for IT management and support. If someone is using both, it’s usually because they have an MSP for their IT needs and are leveraging staff augmentation for a separate business function.
Alternatively, it may be because the MSP they chose is unable to provide all of the IT services they need. For example, not many MSPs offer software development services. That’s why shopping for an IT partner that can truly cover all of your IT needs is so important for cost-effectiveness.
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When Should You Switch From Staff Augmentation to Managed IT Services?
The decision to switch from staff augmentation to managed IT services often depends on several factors related to your business goals, the scale of your operations, and the complexity of your IT needs.
Here’s when you might consider making the switch.
| Need for Specialized Expertise | If you require highly specialized IT skills that are not available in-house, and recruiting such talent is challenging or not cost-effective, managed IT services can provide access to a broader range of expertise. |
| Cost Management | Managed IT services can often be more cost-effective in the long term compared to staff augmentation. This is because managed services typically come with a fixed cost which includes management, maintenance, and upgrades, whereas staff augmentation may involve variable costs such as salaries, benefits, and training. |
| Need More Time For Business Activities | As businesses grow, managing non-core functions like IT can consume a significant amount of resources. Switching to managed IT services allows a business to focus on its core competencies while leaving IT management to dedicated professionals. |
| Scalability | If your business experiences fluctuating demands, managed IT services can offer more flexibility and scalability compared to staff augmentation. Managed services providers can quickly adjust the level of services provided based on your current needs. |
| Risk Management | Managed IT services often come with guaranteed levels of service, including cybersecurity measures, compliance, and backups. This can provide a higher level of security and reliability than staff augmentation, where managing risks and compliance is typically your responsibility. |
| Long-term Strategic Planning | If IT is integral to your long-term strategic goals, partnering with a managed services provider can offer advantages. They can provide strategic guidance, technology roadmaps, and innovations that might not be feasible with a staff augmentation model. |
Ready For The Managed Services Model?
Whether you’re currently using staff augmentation or not, if you’re ready for managed IT services, you need to know where to look. You have a wide variety of choices and choosing the wrong partner can do more harm than good. You’ll spend money on inefficient services while your competitors pull ahead.
With AxiaTP, you won’t face these challenges. We distinguish ourselves as a Complete Technology Provider, offering a comprehensive suite of managed IT services that goes beyond the norm.
Our offerings include not only core IT management but also internet, custom software development, cybersecurity, VoIP, 24/7 helpdesk, and Microsoft 365 management— plus additional services that many other MSPs typically do not provide.
Reach out today to get started.
