Staff Augmentation vs. Managed Services | What’s the Difference?

You are probably already familiar with staff augmentation, but how exactly does managed services differ? Managed services relates to the growing trend in staffing where companies outsource functions or departments to cut costs and improve operations.

Difference in Focus

Staffing agencies go through the motions to interview and recommend candidates for open positions while walking them through the process. They live and die by their resource pool and ability to align candidates with open jobs. The ideal staffing client has a hard deadline and recognizes it doesn’t have the resources needed to complete the project. More often than not, these roles are temporary or project based. Staff augmentation companies help by finding qualified candidates as a result of writing job postings, screening candidates, and conducting interviews.

Managed service providers (MSPs) are selected for their deep expertise and guidance to help optimize or expand current functions.  So what is managed services?   Managed Services is the practice of outsourcing management responsibilities, on a proactive basis, and a strategic method intended to improve operations and cut expenses.  The managed services model is attractive to organizations because it involves a nontraditional pricing model that is based on service levels, results, and quality-based deliverables vs. time and material.  It also increases agility and allows an organization to tap specialized skills.  Often, organizations leverage MSP resources for operational type work, freeing up employees with critical skills to work on higher priority assignments requiring their expertise.  Managed service clients have identified the technological cost reductions and increased efficiency and productivity that are achieved through the support of an experienced provider. MSPs also bring value to the table as partners – they share best in class processes that they have learned from past engagements and across all clients. Managed services is outcome driven making teams more flexible, efficient, and cost-effective.


How do I find the right provider?

Staffing and Managed Services can fit a variety of project budgets, timelines, and purposes. Traditional staffing has its benefits, but in many cases, organizations are looking for the predictability and expertise that managed services provides. MSPs are always the experts in the managed services they provide.

To ensure you are getting the best return on your investment, find a like-minded company that believes in a partnership mentality and works with a shared risk model. This ensures that your vendor doesn’t win until you do.

Other tips include:

  • Find a tool agnostic vendor that can work within your toolsets, especially if they can help train your teams on new technology and best practices for digital workplace transformation
  • You don’t benefit from work that isn’t done right the first time so why pay for it? Use a shared risk model with vendor compensation to make sure you’re only paying for the work you need.

To learn more about managed services and staff augmentation, view our prerecorded webinar – The ROI of Managed Services.  Click button below to watch: