Choosing Between Managed Services or Staff Augmentation for Xactly

Implementing Xactly requires specialized expertise, careful planning, and ongoing support to ensure a successful deployment. One crucial decision organizations must make is acquiring the talent and expertise needed for their Xactly implementation through managed services provided by their software implementation partner or through staff augmentation supplied by the same partner.

Both options offer distinct advantages and challenges, and choosing between them can significantly impact the implementation's success. Canidium routinely assists clients in choosing the best solution based on their unique business scenario.

In this article, we will compare and contrast managed services and staff augmentation for Xactly implementations when provided by your software implementation partner. We will discuss the pros and cons of each approach, the ideal scenarios for their use, and provide insights to help you make an informed decision for your organization. Whether you are embarking on a new Xactly implementation or looking to optimize an existing one, understanding these options is crucial for maximizing the value of your investment and achieving your sales performance goals.

Why would an organization need staff augmentation to manage Xactly?

Staff augmentation is a strategic approach that many organizations consider when managing their Xactly implementation. This method involves supplementing internal teams with external experts to fill skill gaps, meet project demands, or accelerate timelines. 

This section explores why organizations may choose staff augmentation to manage their Xactly implementation. Understanding these factors can help organizations assess their needs and make informed decisions about leveraging external expertise for their implementation projects.

1. Lack of internal expertise: The organization may not have the necessary skills or expertise to effectively manage the Xactly implementation.
2. Temporary need: Xactly expertise may be temporary, such as during the implementation phase or for a specific project, making staff augmentation a more cost-effective solution than hiring full-time employees.
3. Scalability: The organization may need to scale its Xactly implementation quickly, and hiring external staff temporarily allows for flexibility in resource allocation.
4. Specialized skills: Certain aspects of the Xactly implementation may require specialized skills or knowledge that are not available internally.
5. Resource constraints: The organization may have resource constraints that prevent it from dedicating internal staff to effectively managing the Xactly implementation.
6. Accelerated timelines: The organization may have tight deadlines for their Xactly implementation, and staff augmentation can help expedite the process by providing additional resources.
7. Knowledge transfer: By augmenting their staff with external experts, the organization can facilitate knowledge transfer and skill development among their internal team, improving overall capabilities.
8. Cost-effectiveness: Staff augmentation can be cost-effective compared to hiring full-time employees, especially for short-term or project-based needs.
9. Flexibility: Staff augmentation offers flexibility in terms of the duration and scope of the engagement, allowing organizations to scale up or down as needed.

Managed Services by Software Implementation Partner

Definition of Managed Services

In this scenario, the software implementation partner takes full responsibility for managing and supporting the Xactly implementation, including system administration, support, maintenance, and possibly additional services like training and optimization.

Pros of Managed Services

• Expertise: The partner typically specializes in Xactly implementations, ensuring high-quality support and management.
• Accountability: The partner is accountable for the success of the Xactly implementation and provides a clear point of contact for all issues and inquiries.
• Scalability: Managed services can be scaled based on the organization's needs, allowing flexibility as the business grows.
• Comprehensive support: Partners can offer services beyond essential support, such as training, optimization, and custom development, providing a comprehensive solution.

Cons of Managed Services

• Dependency: Organizations may become overly dependent on the partner, which can be risky if the relationship sours or the partner experiences issues.
• Cost: Managed services can be costly, especially if additional services beyond essential support are required.
• Less control: The organization may have less control over the management and support processes, potentially leading to dissatisfaction with service levels.

Ideal Scenario for Managed Services

Managed services by the software implementation partner are suitable for organizations that want comprehensive support, specialized expertise, and scalability without the need to manage the implementation themselves. This approach is particularly beneficial for organizations with limited internal resources or expertise in Xactly.

Staff Augmentation by Software Implementation Partner

Definition Staff Augmentation

In this scenario, the software implementation partner provides additional personnel, such as consultants or contractors, to supplement the organization's workforce for specific tasks or projects related to the Xactly implementation.

Pros of Staff Augmentation

• Control: The organization has more control over the hiring process, ensuring that the individuals brought in have the necessary skills and experience.
• Flexibility: Staff augmentation offers flexibility in terms of the duration and scope of the engagement, allowing organizations to scale up or down as needed.
• Knowledge transfer: Augmented staff can transfer knowledge and best practices to internal teams, improving overall capabilities.
• Cost-effective: Staff augmentation can be more cost-effective than hiring full-time employees, especially for short-term projects.
  

Cons of Staff Augmentation

• Integration: Integrating external staff with internal teams can be challenging, especially if cultural or communication barriers exist.
• Risk of turnover: Contractors or consultants hired through staff augmentation may leave the organization, leading to knowledge loss and potential project delays.
• Training and onboarding: The organization may need to invest time and resources in training and onboarding external staff, which can be a burden.

Ideal Scenario for Staff Augmentation

Staff augmentation by the software implementation partner is perfect for organizations that want to retain more control over the implementation process, have specific project requirements, or need additional expertise for a limited period. This approach is beneficial when the organization has the internal capacity to manage the implementation but requires additional resources or expertise for certain tasks.

A real-world example of Canidium staff augmentation

During a critical transition period for a large manufacturing company, Canidium stepped in to provide essential staff augmentation for its Xactly implementation. The company had recently undergone a major reorganization, resulting in the loss of key team members responsible for managing its Xactly system. With critical incentive compensation processes at risk, the company needed immediate expertise to bridge the gap and ensure continuity.

Canidium quickly assembled a team of experienced consultants with deep Xactly and incentive compensation management knowledge. These consultants teamed up with the company's existing team, providing the necessary support and expertise to keep the Xactly system running smoothly during the transition. They helped maintain the integrity of the incentive compensation processes, ensuring that sales representatives continued to receive accurate and timely compensation.

As the company stabilized and rebuilt its internal team, Canidium gradually scaled back its support, transitioning responsibilities back to the internal team. Throughout the process, Canidium's staff augmentation services proved invaluable in maintaining operational stability and providing the company with the flexibility and expertise needed during a period of transition.

Canidium is here when you need Xactly help.

In business, factors are constantly shifting, teams are changing, and goals can seem like moving targets. It is invaluable to have a strategic SI partner in your back pocket to mobilize when you need it. An experienced SI partner like Canidium can assist in two ways: Managed service engagements and staff augmentation.

Managed services provide a comprehensive solution, offering specialized expertise, accountability, and scalability. By outsourcing the management and support of your Xactly implementation to a trusted software implementation partner, you can benefit from their deep knowledge and experience in implementing and optimizing Xactly systems. This approach allows your organization to focus on its core business activities while ensuring that your Xactly implementation is in capable hands.

On the other hand, staff augmentation offers more control and flexibility, allowing you to supplement your internal team with external experts. This approach can benefit organizations with specific project requirements or temporary resource constraints. By augmenting your team with external experts, you can access the skills and knowledge needed to successfully implement and manage your Xactly system without the long-term commitment or overhead costs of hiring full-time employees.

Now that you understand your options and when each offering will be most effective, your next step is to contact our team and discuss your challenges.

Want to learn more about the value of a strategic partner in long-term business planning. Check out this article:

The sherpa of business growth: The value of a strategic partner