staff augmentation pricing model cover

Staff Augmentation Vs Project Outsourcing Vs Managed Services. Best Choice For Your Business

Did you know that the global market for outsourcing IT services is expected to grow really big, reaching around $937.67 billion by 2027? It’s like a super-fast rocket heading upwards!

U.S IT services outs ourcing market size-min

Businesses, no matter big or small, always try to find smart ways to save money and work better. One really cool way to do this is by getting outside help for certain tasks. It’s like asking a friend for help when you’re stuck on a tricky problem.

When it comes to getting help from outside, there are three different ways you can do it. You can either hire extra people (staff augmentation), hand over a specific task (project outsourcing), or have a whole team take care of things for you (managed services).

These ways are awesome because they let you give your important projects to professionals who know their stuff really well.

But hey, deciding which way to go can be tough. You’ve got to think about what’s good and not-so-good about each option. It’s like picking between different flavours of ice cream—each has its own taste!

So today, we’re here to help you out! We’ll compare these options for you: staff augmentation vs. managed services, and project outsourcing vs. staff augmentation. We’ll talk about what’s cool and what might not be so cool about each one.

By the end, you’ll have all the info you need to pick the best way to get help for your project. Let’s dive in! 

Table of contents

Staff Augmentation

Staff Augmentation is like borrowing extra brainpower for specific projects. Imagine you’ve got your own team, but sometimes you need a few extra hands to handle a big task. That’s where this strategy comes in!


Here’s the deal: when you go for Staff Augmentation, you get outside experts—like software developers—from another company. They join your team temporarily and bring in their skills to help out. It’s like having extra players join your sports team for a match!


What’s awesome about this approach is that it’s quicker than hiring new full-time employees. You don’t have to spend time and money on finding and training people. These experts are already checked out and good to go, like they’ve already passed the test!


The coolest part? You can bring in just the right number of these experts for however long you need them. So, if you’ve got a short-term project, you can hire them for that period without committing long-term. It’s like having superheroes come to save the day, but only when you need them!


Plus, it’s often cheaper than hiring full-time staff. You save on costs because you’re not bringing in new employees with all the benefits and stuff. This way, you get the job done without spending too much on building up a whole new team.

Staff Augmentation Benefits-min

Pros of IT Staff Augmentation

High Productivity Level

When you bring in an outside team of experts through IT staff augmentation, they’re already familiar with the latest tech and best practices. This means they can jump right in and help your team reach its goals faster.

Short Learning Curve

The augmented team already knows your business and projects well. They can quickly understand any challenges you’re facing and tackle technical issues swiftly. This speeds up the process, reducing the time it takes to achieve results.

IP Rights Security

With IT staff augmentation, the external team takes care of its intellectual property. This ensures that your crucial business data remains safe and secure. You won’t have to worry about the safety of your IP.


Hiring an external team through IT staff augmentation is cost-effective. You only pay for the services you need, without the added expenses of salaries, benefits, office space, and other overhead costs associated with full-time employees.

Flexibility and Convenience

IT staff augmentation allows you to easily adjust the size of your team as per your project needs. You won’t have to go through the hassle of hiring and training new employees when workloads increase. This flexibility ensures that your workforce is always ready to handle your business demands.


In summary, IT Staff Augmentation offers enhanced productivity, a faster learning curve, secure IP rights, cost-effectiveness, and the flexibility to scale your team according to your needs. It’s a great choice for businesses aiming for efficiency and adaptability.

Cons of IT Staff Augmentation:

Short-term Solution

IT staff augmentation serves as a short-term fix. It doesn’t address the challenge of securing long-term employees possessing the necessary experience and skills. This means it might not solve the underlying issue of having a stable, long-lasting team.

Difficulty Finding a Perfect Fit

It can be challenging to find the perfect match when augmenting IT staff. Sometimes, companies might have to settle for individuals who aren’t the ideal fit for the role. This mismatch can result in dissatisfaction among professionals and potentially impact overall productivity.

Project outsourcing

Project outsourcing is a business approach where companies hand over their technology-related tasks to external service providers. It goes beyond just needing coding help; it covers broader IT support and services.


Global Business Process Outsourcing Market Growth to Increase by $76.9 Billion During 2020-2024

Global Business Process Outsourcing Market 2020-2024-min

This includes programming and user interface/UX design and testing, which can be difficult for smaller organizations without enough staff.


One requires such a model when he needs to create new products or startups and also when he wants to add some exclusive features to the existing apps.


Moreover, this model offers a range of possibilities for the client and less engagement from his side. However, it also requires deeper research into outsourced software product development to assign some tasks to external experts.

Pros of Project Outsourcing

Transfer of Responsibility

Business managers often juggle multiple responsibilities, and sometimes, it’s challenging to handle them all efficiently. Project outsourcing can step in to assist when your day-to-day tasks demand more direct attention, allowing you to manage tasks more effectively. When comparing project outsourcing to staff augmentation, it can serve as an optimal solution.

Project-related Expertise

For business managers to excel, understanding industry-specific domains is crucial. For instance, in a mobile app development company, it’s beneficial for managers to comprehend the technical aspects of various mobile apps. Project outsourcing can offer opportunities to gain deeper knowledge about the industry and the specific domain you operate in.

Wide Range of Skills

Outsourcing projects to external organizations grants access to individuals with specialized skills. Some of these skills might be unique and not readily available within your own company. Leveraging project outsourcing broadens the scope of expertise accessible to your business, potentially tapping into talents not present in-house.

Cons of Project Outsourcing

Less Control

When utilizing project outsourcing, clients have reduced control over their workplace compared to staff augmentation. In this model, they rely more on the expertise of the service provider, which might result in less direct influence over the tasks and processes being executed.

Additional Expenses

Project outsourcing involves the vendor taking on greater responsibility and expertise. Consequently, it often demands more financial investment compared to staff augmentation, potentially resulting in higher overall expenses for the client.

Managed services

Managed services is a teamwork model where a specialized third-party group takes charge of managing and supporting your IT functions.


This setup not only lowers the operational costs for your business but also boosts the skills and resources available to your own team.


Choosing managed services means you can access top-notch services without the hefty expenses of hiring and maintaining your own IT staff. When comparing staff augmentation to managed services, the latter can provide the optimal outcome for your project.

Managed Services Market, By Region

Additionally, the top-notch managed service providers excel in streamlining your IT management process. They offer valuable insights into emerging technologies, ensuring your business stays up-to-date with current demands without sacrificing efficiency.

Pros of Managed IT Services

Better Cost Control

Outsourcing IT services allows organizations to tailor their expenses based on their specific needs and how critical those services are. The potential savings can be substantial when you opt to outsource your IT services.


Managed IT services can result in savings of up to 70% on salaries alone. Moreover, remote work facilitated by these services eliminates the need for physical presence in the office, leading to additional savings on office space, equipment, and related costs.

Benefits of Managed IT Services:

Improved Risk Management

Benefits of Managed Services-min

Managed services employ specialized methodologies and modern infrastructure to identify and minimize potential problem areas in your business operations. This approach enhances security measures without compromising performance, reducing risks effectively.

Skill and Knowledge

Partnering with an offshore software development company provides access to expert professionals who cater to your technological requirements. Their expertise ensures your business stays competitive in an ever-evolving industry landscape.

High Availability, Efficiency & Productivity

Managed IT services contribute to smoother business operations, fostering efficiency and boosting productivity. Outsourcing IT to a proficiently managed service provider frees up your internal staff to focus on other critical tasks.

Cons of Managed IT Services

Less On-Site Availability

Since professionals from managed IT services aren’t physically present in your office, immediate on-site support for urgent issues might not be readily available. To mitigate this, it’s essential to hire managed IT staff who are easily reachable and equipped to solve problems remotely or be available for calls when needed.

Scope Limitation

A managed service provider doesn’t cover all aspects of technology like an in-house IT team would. When opting for managed services, you might need to select from a predetermined list of supported applications. If you require something beyond these services, it could lead to difficulties.

Final Considerations

While outsourcing IT services can be advantageous, it’s crucial to consider certain factors before making a decision. Research your options, understand what each service offers, and compare factors like flexibility, guarantees, costs, and required skills.


Moreover, if you need to scale a project beyond your in-house team’s capabilities, Staff Augmentation could be a quick, effective, and cost-efficient solution.


For comprehensive support in product development, Project Outsourcing might be a valuable option, providing diverse skills to aid your efforts.


If you’re uncertain about the best fit for your project, our team at MentorSol can assist in selecting the right staffing solution for your business. Get in touch with us today to learn more.

Why choose Mentorsol on demand Staff augmentation 

Why Choose MentorSol

MentorSol, a prominent IT staff augmentation services provider, has a rich history of delivering exceptional solutions to clients for over 6 years. Our flexible staffing solutions are tailored to meet your unique needs, allowing our developers to work remotely, freeing you from concerns about office space, hardware, or software requirements.

Frequently Asked Questions

With staff augmentation, you get access to valuable expertise and experience without the extensive startup time and overhead of hiring a full-time employee. Since this service is time-limited, you’re committed only for the duration you require, without any extra resource obligations.

Staff augmentation services offer clients access to specific skill sets for short-term projects, whether these assignments are on a full-time or part-time basis.


For instance, businesses are increasingly relying on agencies that provide staff augmentation services to fulfill their specialized business requirements during events like product launches, marketing campaigns, and other significant projects.

Staff augmentation involves a company enlisting a staffing agency to recruit temporary or contract workers for particular tasks. On the other hand, outsourcing refers to a company engaging another company to handle either some or all of its business operations, which could encompass customer service, human resources, information technology, or manufacturing.

Staff augmentation differs from managed services in several key ways:


Dedicated Workers and Alignment with Company Culture:


Staff augmentation offers dedicated workers who are fully aligned with your company’s culture. These individuals become an integral part of your project. In contrast, managed services often rely on remote workers who might not be as familiar with your business or its processes.


Control, Communication, and Collaboration:


Staff augmentation provides more control over the project and facilitates a higher level of communication and collaboration. On the other hand, managed services typically offer more oversight and project management, potentially reducing direct involvement and control.


Cost-effectiveness and Resource Utilization:


Staff augmentation tends to be more cost-effective in the long run. It allows you to utilize resources precisely when needed, avoiding the expenses of maintaining a full-time employee who might not be fully utilized. This contrasts with the fixed costs associated with employing someone full-time.