What are staff augmentation and managed services?


When you think of a company, what do you picture? Is it a place where people work long hours and are always fighting for the best position? Maybe that’s how your company is structured. Or perhaps you imagine a place where people are encouraged to take ownership of their own career development. Making sure that they’re in a position to thrive and grow professionally. Maybe this sounds familiar to you: it might be because your company has adopted staff augmentation or managed services as part of its strategy for bringing about change within its workforce.

Staff Augmentation

Staff augmentation is a form of outsourced labor. It’s a way to get temporary or short-term help with a specific project. In this case, you’re not hiring an employee; instead, you’re outsourcing your company’s work to someone else who has specialized knowledge and experience in that area.

The difference between staff augmentation and managed services is that managed services are typically long-term engagements. They last several months or years in length, meaning that it’s more likely that workers will stay on board until the project ends rather than being replaced after just one week of work (or worse yet—one day!).

Managed Services

Managed services are a form of outsourcing that allows you to save money and gain access to skills you don’t have.

If you’re a small business, managing your own IT needs can be expensive because of the costs associated with hiring an IT professional. Your company may not have enough employees or expertise in-house to staff its own IT department. So hiring someone else could be an option for you. However, if you want someone who knows how to manage your information technology (IT) system but isn’t going to charge you by the hour like an hourly contractor would do—or worse yet, if they decide not to show up at all because they couldn’t do what was promised—managed services might be just what the doctor ordered!

A Brief History of Staff Augmentation

Staff augmentation is a temporary staffing solution that uses the skills of a contractor to complete a project or task. It’s a good choice for companies that are short on time but have the resources to pay for temporary employees.

A brief history of staff augmentation: In the early 1900s, when it became clear that farm labor would be replaced by machines. Many people left rural areas as they sought better jobs in cities. The Great Depression worsened conditions further as farmers struggled with debt from buying expensive machinery. Farming methods changed with advancements in science and technology. These trends led many Americans’ lives into decline during this period leading up to World War II; however, there were still opportunities available if you knew where to look!

The Pros and Cons of Staff Augmentation

Staff augmentation is a cost-effective way to add employees. It’s flexible and scalable, fast to implement, and easy for your organization to manage. However, staff augmentation does not provide the same level of flexibility or scalability as managed services because it does not have a dedicated team dedicated to supporting your business needs.

The main benefits of using staff augmentation are:

  • Cost savings – The cost savings from hiring additional personnel can be substantial if you’re working with an agency rather than hiring internal resources within your own company (you’ll need less management overhead). With an agency relationship, there’s no need for training costs or time spent onboarding new hires; all that’s left is ensuring that they meet job requirements before being put on payroll!

The Pros and Cons of Managed Services

Managed services are more expensive than staff augmentation, in-house staff, and outsourcing. But they’re also less expensive than hiring a consultant or freelancer.

Here are some of the benefits:

  • You can lower your costs by hiring an agency to do everything for you (including recruiting, training, and managing). This helps you center on what things most—your business!
  • You’ll find that managed service providers have a lot of experience working with startups so they know all the right things to do when starting up a new venture like yours (e.g., setting up social media accounts). If there’s anything that’s been lacking from your company thus far, it could be filled by these professionals who will provide guidance and support throughout every step along the way.”

Staff Augmentation vs. Managed Services

Staff Augmentation is the process of outsourcing a business function to a third party. Managed Services is the process of outsourcing a business function to a third party, providing support for the outsourced function and an ongoing relationship with your organization.

  • Staff Augmentation can be done by hiring an outside firm to provide services on an hourly or fixed-fee basis.
  • Managed Services will likely include some type of fee structure based on hours worked by your employees as well as ongoing access to training materials, technology support, and other resources that may not be available within your company’s internal staff.*

Focused control

Focused control means you can focus on specific areas of your business, projects, skills, and clients. You can also focus on specific tasks and locations.

You will be able to avail the  advantage of the following:

  • Focus on one or more projects at a time rather than spread yourself too thin by trying to do everything at once. This allows you to give your team members the attention they need without overwhelming them with too much work or responsibility.
  • Manage multiple projects at once instead of managing each one individually; this will save time and makes it easier when doing reviews because there aren’t as many different things being done by different people who need managing—just one person doing everything.* Focus on key skills needed within an organization (i.e., sales vs IT) so that these areas get trained up well enough so they don’t get outbid on bids by other companies that don’t have those people available yet but know exactly what needs doing in order for their systems/projects/etc

Economic flexibility

Staff augmentation is an effective way to quickly scale up or down. You can use it to fill in gaps in your team, or when an employee goes on vacation or maternity leave.

Staff augmentation is usually less expensive than hiring full-time employees because you’re using existing resources rather than recruiting new ones. In addition, staff augmentation allows you to quickly adjust your teams based on changing needs and circumstances. For example, if a project has been completed but needs more work done before it can be released into production.


While both staff augmentation and managed services have their benefits, one is better than the other. If you’re looking for more flexibility in your budget and are willing to pay a little more then staff augmentation may be right for you.

By Fahad