Engineers compare managed services versus staff augmentation.

Nov 23, 2022 11:30:00 AM | FieldFlex Managed Services Versus Staff Augmentation: A Comparison

Let’s discuss the differences between managed services versus staff augmentation and determine which is right for your business.

Digital solutions are becoming increasingly important to businesses as global communication technology grows and expands. Today, more companies seek alternative methods to grow their business and leverage new staffing models. For many, the choice comes down to managed services versus staff augmentation

While each method has its pros and cons, you may wonder which one actually fits your situation. Let’s discuss the differences between managed services versus staff augmentation and determine which is right for your business.

What Are Managed Services? 

A managed service provider, or “MSP,” provides an organization with a set of strategic functions under a pre-determined contract. With an MSP, services are rendered according to an agreed-upon set of responsibilities. The MSP delivers a complete solution from staff, training, tools, and processes with a managed services model. 

Managed services differ from your in-house IT department in a variety of ways. Managed services provide your organization with deliverables based on a service-level agreement. This takes an element of control away from your business since the MSP is responsible for delivery processes and staff selection. 

However, the MSP’s proactive role in your business counters this lack of control. A competent service provider will continuously look for new opportunities in your organization’s infrastructure. Additionally, they will monitor and provide ongoing support for any systems within their control. 

What Is Staff Augmentation? 

Staff augmentation differs from managed services in a few key aspects. While managed services offer less control, staff augmentation allows you to closely manage staffing procedures, delivery models, and processes. The recruitment and onboarding process can be stressful and time-consuming when managing an in-house IT team. However, a good IT staffing service provides a high level of flexibility. 

Staff augmentation works by providing you with a skilled contingent workforce in any part of the world. A proper staff augmentation model allows your organization to fill skill gaps, manage resources, and onboard temporary or long-term staff on a project-by-project basis. 

Additionally, staff augmentation allows your organization to take advantage of a surge in demand by scaling your workforce up or down. Due to the unique model offered by staff augmentation, you can leverage your workforce's global dispatch to take advantage of opportunities outside your regular service area. 

Managed Services Versus Staff Augmentation: Which Should You Choose? 

When comparing managed services versus staff augmentation, it is important to consider the strengths and weaknesses of each model. While both staffing models can be used to benefit your organization, each one has unique drawbacks and advantages depending on your situation. 

Businesses and MSPs use managed services models to establish long-term relationships that extend beyond specific projects. In addition, managed service providers can take full responsibility for a project's success and control it entirely based on a service level agreement.

The managed services approach is ideal when you require a more hands-off approach with more control in the hands of the MSP. If you have a specific set of deliverables that you need to be accomplished regularly, the service level agreement will ensure that your organization regularly fulfills its demands. 

Staff augmentation is superior to managed services when you need to quickly fill a specific role in your organization without the hassle of lengthy recruitment and onboarding processes. Additionally, IT staff augmentation can be ideal if your business requires global dispatch. MSPs are often not viable if your company needs technical staff in remote locations. 

Staff augmentation is usually the way to go if you cannot outsource complete project control to an MSP. Whereas a managed services provider will handle your project's entire delivery model and processes, staff augmentation offers more granular control. Due to the more fine-tuned nature of staff augmentation, this model is often more scalable and suited to rapid growth. 

Final Thoughts 

Businesses increasingly rely on digital solutions to grow their business and leverage new staffing models as global communication technology expands. The choice of appropriate staffing model tends to come down to managed services versus staff augmentation. Although each model has its own set of advantages and drawbacks, your unique situation will determine the best course of action.

Kinettix’s FieldFlexSM program is a reliable solution for creating a more robust contingent workforce and expanding your reach to handle global demands. We provide techs and field management services as an extension of your company. Whether you need talent in a remote corner of the world or help meeting a surge in demand, our global network of remote project coordinators and on-site technicians can help. Contact us to get started.


Chad Mattix

Written By: Chad Mattix

A global IT executive experienced in establishing strategic partnerships for large U.S.-based organizations, Chad Mattix specializes in managed services, contract pricing and negotiation, and the startup and growth of technology services companies. Chad has spent the last 15 years helping large U.S. retailers and U.S.-based IT service providers expand their capabilities across the globe to follow their clients’ expansions. He has developed and completed full entity formations in Brazil and China and has worked with sales pursuit teams in messaging and client-facing presentations. He has also established global alliance and partnership models for multiple global IT organizations. Chad travels around the world to develop and maintain long-term relationships with employees, clients, vendors and partners, which are critical for success.