What is Staff Augmentation ?
Imagine you’re the CEO of a rapidly growing tech company. Your company is making great strides in the industry, but you’ve noticed that your IT department is struggling to keep up with the demands of the business. The workload is too much for your current staff to handle, and you’re starting to see the effects in the form of delayed projects, missed deadlines, and frustrated employees.
You might ask yourself, what could be the problem? Could it be a lack of resources? Could it be a shortage of skilled IT professionals? The answer to both of these questions could be yes. The tech industry is highly competitive, and it’s becoming increasingly difficult to find and retain top talent.
This is where staff augmentation comes in. Staff augmentation is the process of bringing in external professionals to supplement your current workforce. These professionals have specialised skills that your company needs to get the job done, and they can be hired on a project-by-project basis or for a longer period of time.
According to recent studies, the global staff augmentation market is expected to reach $104.75 billion by 2027. The use of staff augmentation services has been increasing, with 74% of companies using this approach to manage their IT projects, and 33% of companies relying on it as a primary sourcing strategy.
Pros of Staff Augmentation Services
Access to specialised skills:
A software development company may struggle to find a skilled DevOps engineer within their current staff. By using staff augmentation, they can bring in a specialist in this area to support their development projects.
Increased Flexibility:
A marketing agency may need to bring in a graphic designer for a short period of time to support a high-priority project. Staff augmentation can outlay companies with the flexibility to bring in additional resources only when they are needed, rather than hiring full-time employees.
Improved Project Outcomes:
According to a study by Deloitte, 91% of IT leaders reported that staff augmentation improved project outcomes. For example, a construction company may bring in an expert project manager to help oversee the development of a large-scale building project.
Cost Saving:
A financial services company may bring in a specialist in data analysis to support a project, rather than hiring a full-time data analyst. Which indicates that staff augmentation is a cost-effective way for companies to manage their resources. A study by Forrester Research found that 65% of companies reported that staff augmentation reduced the cost of hiring and training new employees.
Cons of Staff Augmentation Services
Lack of Integration with Company Culture:
Staff augmentation can result in a lack of integration with the company culture, as external professionals may not be fully invested in the company’s values and goals. For example, an advertising agency may bring in an external copywriter to support a project, but the copywriter may not be fully aligned with the agency’s creative vision.
Dependence on External Providers:
Consider a situation where a software development company may become dependent on a specific software engineer who is brought in through staff augmentation. If that engineer leaves the company, the development projects may be impacted.
This indicates that companies that rely heavily on staff augmentation may become overly dependent on external providers, which can be problematic if those providers are unavailable or experience a change in their business.
Communication Challenges:
Staff augmentation can result in communication challenges, as external professionals may not be familiar with the company’s processes and systems. This can result in delays and miscommunication, which can impact the success of projects.
For example, a technology company may bring in an external IT consultant to support a project, but the consultant may not be fully familiar with the company’s internal systems and processes, leading to delays in the project.
Potential Conflicts:
A report by Forbes found that 33% of companies reported conflicts between external and internal staff as a challenge with staff augmentation. For example, a manufacturing company may bring in an external consultant to support a project, but the consultant may not be fully aligned with the company’s goals and objectives, leading to conflicts with the internal team.
Staff augmentation can result in potential conflicts between external professionals and full-time employees, as the former may not have the same level of commitment to the company.
What are Managed Services?
Picture yourself as the owner of a bustling cafe. You serve delicious coffee and baked goods to a loyal group of customers. However, as your business grows, you find that managing the daily operations is becoming increasingly difficult. You’re struggling to keep up with the increasing demand for your products and services, and you’re worried about maintaining the quality of your offerings.
This scenario is familiar to many business owners, who often find that the day-to-day tasks of running a business can get in the way of focusing on the things that matter most. That’s where managed services come in.
Managed services are a type of outsourcing model where a third-party provider takes responsibility for the ongoing management and maintenance of a company’s specific processes and functions, such as IT infrastructure, human resources, and marketing. In other words, managed services allow a company to delegate tasks that are essential but not directly related to their core business operations.
For example, imagine you’ve decided to outsource your cafe’s bookkeeping to a managed services provider. This provider would take care of tasks such as tracking your financial transactions, preparing your tax returns, and providing you with regular financial reports. This frees up time for you to focus on the things that you do best – brewing coffee and serving customers.
Another example of managed services is outsourcing your company’s IT support to a managed services provider. This provider would take care of tasks such as monitoring your network for potential security threats, providing technical support for your employees, and updating your software and hardware as needed. This allows your IT staff to focus on more strategic initiatives, such as developing new technology solutions for your business.
Pros of Managed Services
Improved Productivity:
Imagine you own a small clothing store and find yourself constantly fixing your cash registers, updating software, and dealing with technical issues. These tasks are taking up valuable time and resources, and affecting your store’s overall productivity.
By outsourcing your IT support to a managed services provider, you can focus on running your business, while the provider handles the technical details. Studies show that businesses that outsource their IT support to managed services providers have seen an average increase in productivity of 30%.
Cost-Effective:
Your clothing store may not have the budget to hire a full-time IT support staff, but with managed services, you can access the expertise you need at a fraction of the cost.
Outsourcing IT support to a managed services provider can save you up to 50% on the cost of hiring an in-house IT team. A report by Gartner states that, on average, Managed Services can save companies around 20-30% compared to in-house IT management.
Access to Skilled Professionals:
Managed services providers often have a team of experts with years of experience in the areas they manage. For example, a managed services provider for your clothing store may have a team of professionals who specialise in fashion retail IT support. By outsourcing to these experts, you can benefit from their expertise and experience, and take your store to the next level.
Flexibility:
Managed services can be adjusted to meet the changing needs of your clothing store. For example, if you are experiencing a busy season, a managed services provider can provide additional resources to help you manage the increased demand for your products and services.
Cons of Managed Services
Dependence on Third-Party:
By relying on a managed services provider, you are placing your business in the hands of a third-party, which can be concerning for some store owners. If the managed services provider experiences technical issues, it can affect your store’s operations, and cause inconvenience to your customers.
Data Privacy Concerns:
When outsourcing IT support to a managed services provider, there may be concerns around the security and privacy of sensitive store data. This can be a significant concern for store owners who handle sensitive customer information, such as credit card numbers.
Limited Customization:
Managed services providers often offer a standard set of services, which may not be customizable to meet the unique needs of your clothing store. This can result in a lack of flexibility and control over the outsourced activities.
Initial Investment:
While outsourcing to a managed services provider can result in cost savings over time, the initial investment in these services can be substantial. For small clothing stores, this upfront cost can be a barrier to adoption.
IT Staff Augmentation vs Managed Services — is Staff Augmentation Better?
The question of whether IT Staff Augmentation is better than Managed Services is a complex one, as both have their own unique advantages and disadvantages. In order to determine the best solution for a business, it’s important to consider a variety of factors, including company size, industry, and specific needs and goals.
IT Staff Augmentation is a model in which a company supplements its existing IT staff with additional skilled professionals. The aim is to fill specific skills gaps, increase productivity, and address short-term needs.
For example, imagine you own a medium-sized software development firm, and you are in the middle of a large project with a tight deadline. You find yourself short-staffed and struggling to meet the demands of the project. By leveraging IT Staff Augmentation, you can bring in additional developers to help you complete the project on time and increase productivity.
On the other hand, Managed Services is a comprehensive solution in which a company outsources its IT operations to a third-party provider. The provider takes on the responsibility of managing and maintaining the company’s IT infrastructure and systems, and provides support and expertise to the business.
For example, imagine you own a small retail store, and you are facing constant technical issues with your cash registers, software updates, and security. By outsourcing these tasks to a Managed Services provider, you can free up valuable time and resources, and focus on running your store. The provider takes on the responsibility of managing the technical aspects of your store’s IT operations, ensuring that everything runs smoothly and efficiently.
So, is IT Staff Augmentation better than Managed Services? The answer depends on the specific needs and goals of the business.
While Managed Services can be a useful solution for smaller companies or those with limited IT resources, IT Staff Augmentation is often considered the better option for larger companies. With IT Staff Augmentation, companies can bring in additional resources as needed, without the long-term commitment of Managed Services. This allows companies to have more control over their IT operations, and make changes as needed.
As the famous business magnate and investor Warren Buffett once said, “If you don’t find a way to make money while you sleep, you will work until you die.” By leveraging IT Staff Augmentation, companies can optimise their IT operations, and achieve success and growth, even while they sleep.
In conclusion, IT Staff Augmentation is often considered the better option for many businesses, as it provides companies with the ability to fill specific skills gaps, increase productivity, and address short-term needs, without the long-term commitment of Managed Services. By leveraging IT Staff Augmentation, companies can achieve success and growth, and reach their goals and aspirations.
Staff Augmentation vs Managed Services: A Comparative Table
| Basis | Staff Augmentation | Managed Services |
|---|---|---|
| Definition | Hiring additional IT personnel to work on a project | Outsourcing the management and maintenance of IT systems to a third-party provider |
| Flexibility | High – Can adjust workforce as needed | Low – Requires long-term commitment and can be inflexible |
| Cost | Lower upfront cost | Higher upfront cost but can result in long-term cost savings |
| Control and Responsibility | More control over projects as staff works in-house | Less control as management is outsourced to a third party |
| Level of expertise | Varies depending on the personnel hired | Generally higher level of expertise due to the specialised nature of managed services |
| Speed of Deployment | Faster – Can start work immediately | Slower – Takes time to onboard and integrate managed services provider |
| Focus on core business | Staff augmentation allows companies to focus on core business activities | Managed services allows companies to offload non-core IT responsibilities and focus on core business activities |
Best IT Staff Augmentation Services
According to a study by the M&A Research Center, the global IT Staff Augmentation market is expected to be $105.2 billion by 2026, with a compound annual growth rate (CAGR) of 5.8%. Indeed, a study by IDC predicts that by 2025, more than 60% of companies will utilise IT Staff Augmentation services as a way of managing their IT resources.
Finding the right IT staff can be a challenging task for any organisation, especially in today’s fast-paced digital world. However, with the help of a reliable IT staff augmentation service provider, companies can easily fill in the gaps in their IT departments and take their operations to the next level.
A report by the National Association of Software and Services Companies (NASSCOM) portrays that India has the largest market share of IT Staff Augmentation services, with around 55% of global IT Staff Augmentation projects being carried out in the country.
Are you looking for the best IT staff augmentation services? Look no further!
Techworks Talent, with its extensive experience and proven track record, is one of the best IT staff augmentation services available in the market today. The company has helped numerous clients in a variety of industries to meet their IT staffing needs and achieve their business goals. From providing top-notch IT talent to delivering exceptional project results, Techworks Talent consistently exceeds customer expectations.
A leading retail company was facing major challenges in managing its rapidly expanding e-commerce operations. The company’s internal IT team was stretched thin, struggling to keep pace with the growing demands of their digital initiatives. With critical projects on the line, the company realised they needed additional resources to help them get back on track.
This is when the retail company turned to Techworks Talent for their IT staff augmentation needs. With a pool of highly skilled and experienced IT professionals, Techworks Talent was able to provide the company with the support they needed to complete their projects on time and within budget.
With its personalised approach, flexible engagement models, and commitment to quality, Techworks Talent stands out as a leader in the IT staff augmentation industry. So, why wait? Get in touch with Techworks Talent today and take the first step towards unlocking your organisation’s true IT potential.