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The article discusses the difference between Staffing Augmentation Model and the Managed Services Model.

Can anyone think of a company that doesn’t outsource something?

out·source – verb 1.obtain (goods or a service) from an outside supplier, especially in place of an internal source.

“you may choose to outsource this function to another company or do it yourself”

The question isn’t whether to outsource – the question is how to do it smartly and strategically

In the outsourcing industry there are two main models of service delivery:

  • Staff Augmentation
  • Service Delivery

Both models offer different solutions to outsource and can be successful in their own ways but largely depend on what the organization is looking for from an outsourcing partnership.

Staff Augmentation is a model where a partner provides staff that work under direction of the client, billed on an hourly or full time employee (FTE) basis. Some examples of staff augmentation include contract employees, temporary labor, and offshore or offsite dedicated staff such as virtual assistants, accountants, customer service representatives, or other full time employees.

Managed services are where a partner delivers a service to the client, billed on a per unit basis. Some examples of managed services include monitoring security systems, monthly fixed charge accounting, payroll services, reservation services, mortgage underwriting, and large per production hour call centers.

At Connext we prefer the staff augmentation model because for most businesses, it isn’t practical to purchase offshore services at a small scale. It is much more efficient and productive for businesses to purchase staff tie and build and integrate their own offshore teams.

In the Staff Augmentation model, offshore staff become part of your time. This allows you:

  • Full visibility into utilization, volume, and quality
  • Work on your system with your training
  • Collaborative relationship
  • Ability to work on a variety of tasks, not just a single service
  • Ability to increase complexity with experience at the same rate
Staff Augmentation vs. Managed Services

Employee Capacity/Expertise Matrix

Staff augmentation and managed service delivery can both be great ways to grow your business. It is most important to decide which model is best for you and your organizational goals.

Uncover key insights into choosing the right service model for your business. Read our blog post what is the difference between staffing augmentation and managed services to enhance your decision-making between these two strategic options.

Connext Global Solutions helps companies build custom, dedicated support teams in the Philippines. Learn more about Connext Global Solutions.

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