The most important resource for any organization under any industrial vertical in the present day is their human resource. Without adequate human resource, organizations fall in their efficiency rates, and in fact become highly dysfunctional. While good human resource management is an internal issue to grapple for most organizations, there are some situations where external help or intervention is required to get organizations back on their feet and perform in optimum productivity. There are two different ways to ensure that you have adequate human resource at all times. They are Managed Services and Staff Augmentation. So, if you are an organization that is in requirement of human resource, then what should your choice be? Managed Services or Staff Augmentation?
Having established that both are just different forms of human resource outsourcing, we are now going to consider characteristics which will help you choose between Managed Services or Staff Augmentation.
The primary purpose:
What is the primary purpose for which you are looking to outsource human resource? When you are in urgent requirement for a single resource that needs to be replaced, a staffing solution would be the perfect solution for you. Or, if you are looking to get a particular talent to accomplish a specific aspect of a project, a staffing solution would be able to find the right talent for you. If you just need a resource to work for you temporarily based on a client requirement, once again staff augmentation would serve your purpose.
Organizations look for a Managed Service Provider when they are looking to hand over a specific section of their IT requirements to a service provider so that their in house IT team could focus on a task at hand. If you are an organization who is planning to give you IT to the experts and concentrate on your core competency, then you should use the services of an MSP. Sometimes Managed Serviced providers even provide full IT outsourcing for a temporary period of time.
What will you get?
With a managed service provider, you will get exactly what you have asked them for and nothing more. If you are asking for an IT consultant with a specific area of expertise for a period of 6 months, it is what you will get from a staffing company. We should actually talk about the pros and cons of Managed Services and Staff Augmentation separately but a Staffing company is best designed for a short term project and you will be charged based on the system.
When you have hired a managed service provider, they take full responsibility for the task at hand. They would give you the right guidance, support, and updates to streamline your organization, and make it more efficient. With a managed service provider it is less of being a back that is outsourced and instead becomes an integral part of the organization.
Duration and Proximity:
We would have indirectly address duration of each of the two different services in the article earlier. But what you should understand is that duration is one of the major differences setting the two services different from each other. When you are hiring a staff for augmenting you team, you are simply not looking for long term and it is not meant to be. You should use a staffing firm only when you looking for a person in a short term or else, you might run to problems with regulations.
Using the services of a managed service provider for a short period of time or for a simple addition is simply not going be viable for the service provider as they hire people and train them to provide support to organizations in the long term. Most times it involves teams and you can be pretty sure that teams cannot be established in a short period of time. To truly reap the benefits of hiring a managed service provider, you should be looking for a long term contract.
Most businesses that offer managed services do not offer staff augmentation and vice versa. But we simply cannot put one over the other even as those to specific types of organizations try to discredit the other. But an organization should choose between the two depending on their requirement.
At XCEL Corp, we have provided both staff augmentation and managed services to several organizations. Some of the larger organizations among our clients have even take both our services simultaneously or separate at different points of time. Their testimonials speak volumes about the services we provide. Get in touch with us right now to know more.