What Is the Difference Between Managed Services and Staff Augmentation?

Managed services assign responsibility for a defined service to a provider, while staff augmentation supplies people who work under the client’s direction.

Managed services assign responsibility for a defined service to a provider, while staff augmentation supplies people who work under the client’s direction. The choice turns on who manages the work, owns performance, designs the process and carries volume or productivity risk.

Managed services compared with staff augmentation

Managed services compared with staff augmentation
DimensionManaged servicesStaff augmentation
What is providedA defined serviceAdditional workers or specialist capacity
Daily directionThe provider manages delivery within the agreed scopeThe client directs the work
Performance responsibilityThe provider is accountable for agreed service measuresThe client retains responsibility for team output
Process ownershipThe provider operates the delivery processThe client controls the operating process

What records support Managed Services vs Staff Augmentation?

Compare scope, decision rights, supervision, measures, pricing, tools, staffing flexibility, data ownership and exit requirements.

What does Managed Services vs Staff Augmentation not establish?

Calling augmented staff a managed service does not transfer accountability. The contract and daily operating model must support the claimed responsibility.

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