If you’re considering staff augmentation vs managed services for your next software development project, you’re in good company. These models of working with experienced development teams are becoming increasingly popular among US businesses looking to take advantage of the advantages of nearshore software development- cost savings, increased scalability, and access to a highly-skilled remote workforce. But staff augmentation and managed services can be quite different in terms of how they’re structured, their cost structures, and the responsibilities of both parties involved. In this article, we will explore staff augmentation vs managed services, discuss the differences between them, and provide tips on when to use each.
Staff Augmentation vs Managed Services
At a high level, staff augmentation and managed services involve working with an outside development team to build out your project or application. The main difference is that staff augmentation involves hiring a third-party vendor to provide additional staff for short-term projects or tasks. In contrast, managed services include engaging with a third-party vendor to take on the full scope of your application development from start to finish.
One of the primary advantages of staff augmentation is that it allows you to go beyond simply hiring staff and can be used for various tasks, such as bug fixes or feature enhancements. This service is ideal for businesses looking to quickly scale up staff capacity or supplement in-house staff during peak times. It’s also an excellent solution for companies that need more resources to hire and train permanent staff.
On the other hand, managed services provide an end-to-end solution for software development projects. Companies with managed services typically outsource the entire development process, from planning and architecture to design and deployment. This service is ideal for businesses looking for a turnkey solution or those needing help getting their project off the ground.
Benefits of Working With Nearshore Software Development Companies
When considering staff augmentation vs managed services, it’s also essential to consider the benefits of working with nearshore software development companies. Nearshore companies typically offer cost savings, access to skilled remote staff, and scalability. For example, US-based businesses can save up to 50% on labor costs by using a nearshore team for staff augmentation or managed services and providing an avenue for full compliance with local regulations.
Additionally, working with the nearshore staff gives access to a broader pull of skills and talent than in the domestic market. This helps ensure quality development and a faster delivery timeframe. Finally, staff augmentation or managed services provided by nearshore teams allow businesses to quickly scale up staff capacity as needed without worrying about recruiting and training new staff.
Tips on when to use Staff Augmentation and Managed Services
When choosing among staff augmentation and managed services, it’s essential to consider your project goals and timeline. If you’re looking for a quick way to scale up staff capacity or make minor changes to an existing application, staff augmentation may be the better option. On the other hand, if you need a turnkey solution or help to get your project off the ground, managed services might be a better fit. Another criterion to consider is cost — staff augmentation is typically cheaper for businesses with smaller project budgets. Ultimately, the decision of staff augmentation vs managed services comes down to what best fits your business goals and project needs. At the same time, working with a nearshore software development company can provide numerous benefits in terms of cost savings, access to skilled staff, and scalability.
Ultimately, staff augmentation vs managed services can be a complicated decision for any business. It’s essential to understand the differences between each option and consider the project goals, timeline, budget, and other factors. To learn more about staff augmentation and managed services or to get started on your software development project, contact Sonatafy today. Our experienced staff can help you determine the best solution for your project needs.