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Leveraging external consultants: Delivery models & considerations

Staff augmentation or managed services - what is the best option for a company in need of specific know-how and competences?

In this piece, we list the pros and cons of the two options and describe what the optimal consultancy partner should be able to offer in an optimal solution.

Staff augmentation or managed services ? There is no clear-cut answer to that question as it all depends on the assignment and nature of the projects at hand.

IT specialists on time and material basis
(Staff augmentation)
Company mobility
Managed services

When working with external consultants, either short-term or long-term, there are different delivery models you can consider. From a consultancy standpoint, this is not an either/or choice. Instead, it is about being able to take advantage of the delivery model that would make the most sense in a given situation.

Definitions of delivery models and services can vary. But in general, we divide delivery models into two basic categories:

Two delivery models

  1. Time and material-based consultancy services, also called "staff augmentation", where expert consultants join the current organizational setup or team for a period of time.
  2. Managed services, where a third party takes full control and provides the necessary solution, support and/or maintenance.

As a full-service consultancy, we think that both delivery models have their merits. The choice really depends on the type of assignments or projects at hand, in addition to the internal capabilities and setup of the company in question.

Check out the table below which emphasises some of the pros and cons of the two delivery models: Staff augmentation VS Full Service Provider

PROS

Time and Material based Consultancy Services

  • Accessing a highly specialized workforce who predominantly prefer project-oriented work
  • Rapid access to missing capabilities and competences
  • A highly scalable and agile service
  • The organization maintain full control
  • Engages with the organization as part of the current teams and setup
  • Simple and highly flexible contract terms
  • Transparent costs

Managed Service

  • Price tied to an outcome which equals guaranteed outcome
  • Allows you to focus on core business
  • Accessing know-how within a specific domain or area
  • Risk is assumed and managed by the provider

 

 

 

 

CONS

Time and Material based Consultancy Services

  • No guaranteed outcome
  • All risk remain in-house
  • Risk of increasing administrative work (if wrong supplier setup is chosen)

Managed Service

  • Less agile and flexible
  • Handing over control

 

 

Choosing a partner for your journey

To take full advantage of external IT capabilities, you need the right partner. Having a consulting partner with the right capabilities and capacity to help and serve you is vital, and it depends on your unique situation and needs.

Choosing the right consulting partner will provide you with the flexibility to get the precise type of external assistance you are looking for when you need it. It also opens up the possibility to utilize your external partner on a whole new level.

What the perfect consultancy partner should be able to provide

We suggest you should consider seven factors when choosing your consulting partner. The perfect consultancy partner should be able to present:

  1. High-quality services and IT expertise
  2. A long-term relationship
  3. Understanding of your company’s goals, vision and setup
  4. Extensive experience within your area and industry
  5. The size and muscle to be there in the long run
  6. Transparency across services and external workforce to give you the complete overview
  7. Freedom to focus on your core business and less administration

... all provided via a transparent interface for the entire partnership.

Contact our local departments in Denmark, Poland, Sweden, and Norway for further information and schedule a free assessment.

Ready to find out more?

Drop us a line today, and we will get back to you.

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