In 2024, the major challenge confronting recruiters is the lack of skilled tech talent. It is estimated that around 53% of hiring managers face problems in accessing tech talent with relevant skill sets. In today’s competitive business environment, IT firms face significant challenges in maintaining business operations effectively, primarily due to a scarcity of skilled tech staff and extensive resources. Swiftly hiring specialized tech talent is crucial in today’s fast-paced world, however, the hiring process can be laborious and time-consuming. That’s where staff augmentation is a streamlined solution that can provide easy access to skilled professionals, saving both time and effort in the hiring process.

Similarly, managing IT tasks is essential for business success, however, managing these tasks internally can be resource-intensive and time-consuming. Managed services offer extensive support and proactive management of IT tasks saving time and ensuring optimal IT performance. 

According to recent research, global spending is predicted to reach US$81.87 billion on staff augmentation and US$1.1 trillion on IT outsourcing by 2025. Wondering why? Let’s see why staff augmentation and managed services are gaining widespread popularity.

Staff Augmentation vs Managed Services

Staff augmentation and managed services are significant frameworks to streamline business operations. They provide easy access to exceptional tech talent who work alongside the in-house team under their direction. Businesses can ensure the timely delivery of projects by accessing specialized expertise and customized resources as per their specific project requirements either through technical staff augmentation or managed IT services.

These models offer cost-effective alternatives with specialized skills tailored to meet several projects’ demands. In staff augmentation, the project manager provides staff with certain competencies for the company’s project needs. At the same time, managed services take full or partial responsibility for the company’s entire project execution and management process.

Staff Augmentation:

Staff augmentation is strategically outsourcing staff with relevant skill sets to fulfill the project’s specific needs. It facilitates companies to hire additional staff as per their project’s demand, often temporarily.

For example, a software company wants to develop an educational app under tight deadlines. However, its current staff lacks some specific skills as per the project’s unique requirements. So, to address this skill gap, the company can opt to recruit additional developers with the relevant skills necessary for the project’s success.

Benefits of Staff Augmentation:

Staff augmentation facilitates companies to meet project deadlines and address skills gaps effectively by hiring additional developers relevant to the project’s needs. Technical staff augmentation emerges as a valuable solution for companies with a shortage of skilled tech talent, let’s see how.

  • Time-Saving: Quick Access to the Skills in Need

IT team augmentation is of utmost importance when working under time constraints. It reduces time spent on the recruitment process. The companies can take the help of specialists in hiring tech talent relevant to their project’s needs.

  • Budget Control: Offer Cost Savings

IT Staff augmentation is a very cost-effective solution that can save the amount of full-time wages. If the company wants to avoid hiring employees permanently, they can hire staff contractually.

  • Offer Flexibility: Requires No Commitment 

It offers flexibility in adapting to changing project requirements and business demands. Companies can replace the staff immediately if the staff fails to meet business objectives.

  • Scalability: Access Resources as per Necessity

It’s easy for companies to adjust their workforce size up or down based on the project demands. Companies can optimize resource allocation and avoid the risk of understaffing.

  • Raise Productivity: Business Performance Improvement

The staff hired focuses completely on the project’s needs and objectives. This way staff augmentation helps companies boost their business’s productivity.

Managed Services

Managed services refers to outsourcing a specific project to a third party for complete execution and management. It facilitates proactive monitoring and rapid problem resolution to help businesses reduce downtime and optimize performance with expert support and management. 

For example, if a mid-size company is facing problems in managing IT tasks or going through frequent tech issues like security breaches, and software glitches, which often lead to disrupt production and affect the business effectiveness. In such scenarios, businesses can opt for managed IT services to streamline project operation and management. In managed services, the project managers thoroughly analyze the project’s process, identify the problems, and implement solutions, ultimately fostering improved project outcomes.

Benefits of Managed Services:

Managed IT services take the entire responsibility of the project’s day-to-day operation and management process. This model offers proactive monitoring, fulfills all kinds of project needs, and provides constant support. So, let’s understand how managed services can help businesses achieve extraordinary results:

  • Time-Saving: Efficiency with Promptness

This model offers quick access to competent resources ensuring timely delivery of projects. The company can focus on business expansion and prospects instead of being preoccupied with intermediate deliverables.

  • Cost-Effective: Affordable Solution

Managed IT services can reduce costs based on predefined service levels. It facilitates adjusting prices based on project demand, requirements, and outcomes.

  • Dedicated Management: Ensuring Smooth Business Operation

The project managers thoroughly monitor the entire process and understand the business models ensuring all the required resources are readily available during the project development process.

  • Advance Monitoring: Keeps an eye on all processes

The project managers oversee the entire business process. They make sure to fulfill the business requirements with the required resources and ensure timely completion of projects. The project managers focus completely on the execution, development, and management of the entire project.

  • Frees Up Resources: Saves Efforts

It helps the company to free up internal resources so that it has more time to invest its efforts in other significant projects. This way managed services help enhance the productivity of the company and also reduce employee turnover.

Comparing Staff augmentation and Managed Services

ComparisonStaff AugmentationManaged Services
Outsourcing:Skilled staff is hired to fulfill specific project needs.The partial or entire project is outsourced.
Role and Responsibility:The staff hired focuses on the specific needs of the project that align with their skill sets.The project manager handles and oversees the entire project operation and management process.
Flexibility:Companies can replace the resources if they are not able to achieve the desired goals.The entire project’s ins and outs are managed by the project manager.
Resource Management:IT staff augmentation provides additional staff to support the client’s specific needs.It delivers a defined set of solutions based on predefined service outcomes.
Cost Structure:It involves paying for hired staff based on time and task.It involves paying for the entire project based on its expertise and resource requirements.
Scalability:It requires more manual adjustments to accommodate changes in project needs.It can adapt to the client’s evolving needs without significant disruption.
Specialization:It primarily focuses on augmenting existing teams with additional manpower.It frequently offers access to specialized expertise and resources during the project operation and management process.


In conclusion, both IT staff augmentation and managed services offer cost-effective solutions for businesses facing skill shortages and resource constraints. Each approach offers distinct benefits, from flexibility to enhanced productivity. Both can help in enhancing business performance in today’s dynamic competitive world.

Deqode provides seamless skilled IT staff relevant to the company’s project needs to empower businesses to fill the frequent gaps due to a lack of IT resources and expertise. We help companies to ease their project development process with our tailored solutions and experienced IT staff.

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