Staff augmentation refers to the practice of hiring an external team to supplement your existing staff. This approach proves advantageous when your current staff lacks certain skills or when a project demands more resources than you currently possess. Staff augmentation companies are typically compensated at an hourly rate and partner seamlessly with your team for the necessary duration.
On the other hand, managed services involve the outsourcing of specific operational aspects of your organization to a third-party provider. These could include tasks such as IT maintenance, customer service, or regular software updates. By outsourcing these services, you can free up resources and staff time to focus on more crucial projects within your company. Managed services are typically based on a fixed fee for the duration of the agreement with the third-party provider, as opposed to the hourly rate associated with staff augmentation.
While both staff augmentation and managed services offer benefits to businesses, their suitability depends on the specific needs of each organization. It is important to note that these terms are not interchangeable; rather, they represent two distinct services.