Managed services and staff augmentation are often used interchangeably, and that’s understandable—considering that they both have their roots in IT outsourcing. Despite a couple of basic similarities, the two are entirely different in both form and function.

1. 5 Differences Between Managed Services & Staff Augmentation
Differences Between
Managed Services &
Staff Augmentation

2. Managed services and staff augmentation are often used
interchangeably, and that’s understandable—considering that
they both have their roots in IT outsourcing. Comparing
managed services and staff augmentation is like comparing a
telescope to a microscope. Despite a couple of basic similarities,
the two are entirely different in both form and function.
Intro
5 Differences Between Managed Services & Staff Augmentation

3. Managed services help companies make large-scale personnel decisions
to guide them toward their long-term goals.
Managed Services
Staff augmentation narrows in on one identified focus area to
solve a problem.
Staff Augmentation
5 Differences Between Managed Services & Staff Augmentation

4. 5 Differences Between Managed Services & Staff Augmentation
Staff augmentation is aimed at closing skills gaps among the
client’s existing employees for a specific project.
Staff Augmentation
#1: Model
Following a managed services model, management
responsibilities and strategic functions are outsourced to an MSP.
Managed Services

5. 5 Differences Between Managed Services & Staff Augmentation
Staff augmentation firms provide personnel based on their
clients’ needs. Because they sell time-in-seats rather than
services, costs are often assessed incrementally—either per
resource or per hour worked.
Staff Augmentation
#2: Pricing
Services and prices are defined and negotiated between the
client and the provider.
Managed Services

6. 5 Differences Between Managed Services & Staff Augmentation
Typically, resources are managed by the client—not by the firm—
which can sometimes provide a greater sense of control for the
customer.
Staff Augmentation
#3: Responsibilities
MSP is responsible not only for the work, but also for the delivery
model, people, training, processes, and tools used to complete
the work
Managed Services

7. 5 Differences Between Managed Services & Staff Augmentation
If a business is struggling to meet looming project deadlines, staff
augmentation can be a quick and effective source of momentum.
The extra resources can help complete projects without incurring
many of the additional costs and risks associated with hiring
internally.
#4: Service Commitments
MSP offers a service, it establishes a series of formal
commitments to the client. Together, the MSP and the client use
Key Performance Indicators (KPIs) to measure the provider’s
performance against the Service Level Agreements (SLAs) tied to
those commitments.
Managed Services
Staff Augmentation

8. 5 Differences Between Managed Services & Staff Augmentation
By nature, staff augmentation is more reactive than managed
services; the narrow focus on projects and shorter engagements
do not allow time for personnel to help shape the client’s larger
business goals.
Staff Augmentation
#5: Proactivity
MSPs play a proactive role, focusing on finding opportunities for
ongoing improvement. As a result, they consider the existing
situation as well as the business’s future goals, which often lead
to a strong partnership between the MSP and the client.
Managed Services

9. Overview
Staff AugmentationManaged Services
Defined & negotiatedPrice Time-in-seats
Responsibilities
Delivery model, people,
training, processes, & tools
Delivering Resources
Strategy & managementModel Closing skill gaps
Goals
Formal commitments
(KPIs & SLAs)
Help complete projects
Proactive vs.
Reactive
Proactive:
Find opportunities for
ongoing improvements
Reactive:
Focus on projects / short
term engagements
5 Differences Between Managed Services & Staff Augmentation

10. 5 Differences Between Managed Services & Staff Augmentation
Learn More
For more on Managed Services vs. Staff
Augmentation read our blog post here