Both IT managed services and a staff augmentation model can be beneficial for startups; however, in different scenarios. For instance, IT managed services is a more profitable option for those startup owners who are just starting their business and don’t have the tech expertise to manage outstaffed specialists or build the product with an in-house team from scratch. However, for those startup owners who are tech-savvy enough, staff augmentation is also a perfect option since it will allow them to delegate the entire development and concentrate on attracting investors, conducting business and marketing activities.
In turn, startups that have already developed an MVP version of the product, gained the necessary investments, and started transforming the product into a full-fledged one, it can be more reasonable to hire several external specialists and manage further development, saving costs on the product implementation.