So, you’re considering adding staff and exploring your options for making new hires. These days, company owners have more alternatives for building their teams; among these options are staff augmentation and managed services.
What Is Staff Augmentation?
Staff augmentation can help your company in scaling your workforce quickly. Staff augmentation adds personnel to an organization to complete specific tasks or projects. The motivation behind staff augmentation can be anything from wanting to expand the company’s core competencies to simply needing more workers to get the job done.
Currently, a few standard ways companies go about acquiring new staff. The most common is using a staffing agency. Staffing agencies specialize in connecting companies with workers who have skills and experience. In addition, the agency will conduct interviews and background checks. That can be an excellent option for companies that don’t have time or resources to perform their search for new staff internally.
Another option for acquiring new staff is using online platforms or marketplaces. These solutions allow companies to post job listings and receive bids from freelancers interested in the work. That may be a good option for companies with a limited budget for new staff, as they can typically find workers willing to work for less than what they would pay to a staffing agency.
What Are Managed Services?
Managed services is a type of outsourcing that involves the management of specific tasks or projects. The motivation behind managed services can be anything from wanting to free up time for other jobs to simply wanting to outsource the management of a particular task or project.
The Difference Between Staff Augmentation And Managed Services
The main difference between staff augmentation and managed services is that staff augmentation provides additional personnel to an organization, while managed services also include the management of those workers.
Managed services can be a good option for companies that want to outsource the management of their new staff. That can be helpful for companies that don’t have the time or resources to manage their new team internally.
When deciding whether staff augmentation or managed services is right for your company, it’s essential to consider your needs and objectives. For example, staff augmentation may be the best option if you need additional personnel to complete specific tasks or projects. However, if you need someone to manage your new staff, then managed services may be a better fit.
Are You Hiring Employees Or Contractors?
Once a company has decided to add new staff, they will need to decide what type of workers they need. Companies can choose from direct hire employees or independent contractors.
Typically, direct hire employees can work full-time or part-time. In addition, depending on company policies, direct hire employees may qualify for health insurance and vacation benefits. On the other hand, contractors generally work on an as-needed basis and usually don’t qualify for employment benefits.
Nearshore staff augmentation empowers business owners to build contractor teams to implement their projects. In addition, this approach to hiring saves the company on payroll, training, and taxes.
Service Providers Are An Option
A few different ways exist companies use to go about acquiring managed services. The most common is to use a service provider. Service providers specialize in executing specific tasks or projects for companies. The provider will typically handle all logistics involved in managing the task or project, such as conducting interviews and background checks. That can be an excellent option for companies that don’t have the time or resources to complete their search for a managed service provider internally.
In managed services, the service provider takes on responsibility for the project and manages it on behalf of the client company. That can free up the client company’s resources and allow them to focus on other aspects of their business. Another key difference is in the pricing model. For example, staff augmentation typically uses hourly pricing, while managed services pricing is generally monthly or yearly. That can make managed services more cost-effective in the long run since the service provider can typically achieve economies of scale.
Finally, managed services tend to be more comprehensive in scope than staff augmentation. That means they can cover a broader range of IT needs, making them a one-stop solution for businesses. Managed services have higher prices than non-managed solutions because they come with more benefits.
Managed services are best for a company that wants to go further than staff augmentation. They’ll have more control and a more robust suite of services encompassing a wider part of their IT management.
Base The Decision Solely On Needs
Ultimately, it’s up to you whether you go with one service over the other. First, list your needs and have a meeting where your team mulls over both approaches’ good and bad points. Once you know which option is better, you can move on to the next phase.
Many companies have no benefits to managing workers in a hands-on, local environment. In addition, doing so raises fixed costs, making the company less competitive overall. A managed service provider is a superior choice if your business is in the same boat. That way, you’ll receive all the benefits of new employees without the onerous overhead associated with hiring them internally.
Yuxi Global helps companies get more from their technology without investing in an expanding staff. Nearshoring critical IT services reduce expenses and boost your overall capabilities. Our experienced team knows full-stack, front-end, and software development. Whether your need DevOps or specific code for a project, we can help.
Managed services and staff augmentation are proven methods to grow your company’s tech capacity quickly. Which one you pick ultimately depends on how much time and effort you want to deploy to manage workers. If the answer is not much or none, then worked services are the answer.