Digital transformation pushes companies of any kind and expertise to develop digital products, applications, web pages, software, etc.
In most cases, these businesses specialize in one particular industry and do not have IT departments to take on projects of this kind or lack some resources. Still, solutions exist, as there are different types of external hiring modes.
Two of the most popular cooperation types are staff augmentation and managed services. SA and MS have proven to be time- and cost-effective solutions, but there are significant differences.
We will discuss their main principles and compare staff augmentation vs managed services. So, it will be easier to choose the most suitable type for your ongoing projects.
Staff Augmentation vs Managed Services Model: What Do They Mean?
Staff augmentation implies expanding the existing department by hiring additional resources to join a project. It’s a type of temporary employment that ends once the case is over. Businesses choose this form of cooperation when they do not need to hire someone permanently.
Managed services is another type of outsourcing practice that means hiring a fully-equipped organization of professionals who will be responsible for maintaining and supporting the case.
Once the project is over, a service provider bills the customer for the on-demand service performance.
So, the difference between these two types lies in the following: whereas the SA model enables you to expand the in-house team with additional skilled resources, the MS model implies hiring the whole team, for instance, if you do not have an internal IT department.
Let’s take a closer look at the advantages and disadvantages of these two modes and compare managed services vs staff augmentation.
IT Managed Services Model Principles
IT managed services model is experience-driven and strategic cooperation of a customer and provider where a third-party offers specialized skills, technologies, and processes to achieve an expected outcome.
This employment model lets you hire an entire team of professionals with the right skills and knowledge and all its technical tools necessary for the project.
Companies that consider finding a third-party provider to cover specific projects should take into account the following:
Reliability: make sure you can count on your new partners, ask for regular reports and analytical stats to keep track of the project, and ensure that your partner works according to the agreed plan;
Background: check partner’s previous experience, contact their customers, or read the reviews, so you know you are hiring a professional and experienced team who will take care of your project from end-to-end and deliver a high-quality product;
Prices: review the pricing policy and check whether there are no hidden expenses, so your company will not pay extra costs.
When you choose managed services as a hiring format, the project’s outcome depends solely on your partner. The company takes full responsibility for the project and ensures the case is completed within stated time frames and meets the fixed costs.
IT Managed Services Model Pros & Cons
By choosing MS as a hiring model, you get several advantages that will help your company and ensure an excellent project outcome. Let’s do a detailed review of the model’s pros and cons.
Pros of MS model:
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Time- and cost-effectiveness: MS model allows you to hire an entire team of skilled and experienced professionals who have all the necessary tech tools and resources to work on your project. In this way, you save time, costs, and efforts, as you get everything you need. There is a fixed price for their services, and it varies from the amount of performed work;
Control: a service provider takes care of the project from its beginning to its end. But it is vital to choose an experienced and reliable company that has proven to deliver high-quality products and the best results;
Monitoring: the supplier monitors all the processes during the project, takes care of the necessary tools and resources;
Outcome: the result of the project depends on the vendor. MS organization calculates all the risks and provides a suitable plan for the project.
Cons of MS model:
Accountability: ensure that you choose a reliable company. Before selecting a vendor, you should go over the previous customers’ reviews, contact them, and find out more information about the company, how it works, etc.
Costs: it is not always possible to get a full package of tools and resources for a low price. Some of them require higher fees. In case a vendor makes a mistake or doesn’t meet the customer’s expectations, extra expenses are the customer’s responsibility.
Staff Augmentation Model of Outsourcing
The staff augmentation model is used when there is a need to temporarily involve outside staff to increase your company’s capacity to develop new products or upgrade the existing ones.
In this case, the project’s outcome depends on your in-house team, while temporary staff adds the required input. So, when do companies think of using SA? Here are some reasons:
Increased capacity (there is a need to boost the company’s efficiency to complete everyday tasks during a project run);
Bridge to hire (if you have just moved to a new location or start a new product line, you can use SA while you are hiring permanent employees);
Specialized skills (you can find the right resources to cover specific tasks for a short period);
Strategic (SA is a quick way to hire a flexible team of experienced professionals to help you be more agile, and increase speed to market, resulting in gaining the advantage over your competitors).
Although SA is a temporary solution, it has numerous benefits and adds value for the companies that consider this mode of talent outsourcing.
Staff Augmentation Model Pros & Cons
The SA model, as well as MS, has its benefits and drawbacks. Companies might experience SA downsides if they choose the wrong type of outsourcing that does not suit their needs. Let’s view the model from both sides.
Pros of SA model:
Cost-effectiveness: thanks to SA, you can pay only for the required set of skills and time spent on the work. There is no need to keep full-time employees in permanent positions and pay high annual taxes when you know that additional resources are needed only for a short period.
Flexibility: you can quickly get access to missing capabilities and skills and cover staff shortages due to some unexpected events during the project run;
Control and lower risk: SA allows you to control the project outcome and track every aspect of the process. The team’s project manager will allocate the tasks accordingly and maintain the quality of the end product. When outsourcing a third-party provider, you give away the authority to control the development processes, but with SA, you house the whole team in your company and monitor the project, thus lower the risk of ending with the wrong product quality;
Easy employment: you just conclude a contract with one or several employees that will provide you with the necessary skills during the development process.
Cons of SA model:
Dependence on third-party providers that help you find the right talent which can influence your plans;
Inability to find all the appropriate skills, experience, and knowledge in one person. Hired employees might need some time to study your product in detail to join the team and provide you with a high-quality product. It means that you can spend some time on training and educating the additional staff;
Not suitable for long-term projects, there is a chance that augmented staff may leave the project before it is over, and you will need to start the hiring process every time someone quits.
Outsourcing is becoming more popular, but finding an external dedicated development team might be a challenge. Numerous companies offer their services, and it is hard to choose, mostly when you have never collaborated like this before.
We, at Intellectsoft, help other companies to deal with different projects within stated time frames. Our team of professionals will come up with the most suitable solutions for your case.
Get in touch with usand find out everything you need, from terms and conditions to prices and after-project support so your team can get full advantage of outsourcing software development.
The hospitality industry depends a lot on keeping customers happy, but it’s
getting harder to attract and keep them. The pandemic hit this industry hard, and now market competition is tougher
than ever, with competitive offerings swaying customers. Hospitality businesses are willing to spend big to win
customers back. The main questions for many are: how can we stay ahead of the competition, keep our customers, and
increase revenue? Keep reading—we’ve got some answers.
Customers today have so many options that
getting their attention is a real challenge. It’s not easy to make them choose your business over others. What
worked 10 years ago doesn’t work the same way now. Back then, people often chose businesses based on reputation. But
with new types of businesses (boutique hotels, craft cafes) popping up or big enterprises getting a new strategy,
expectations have changed. The good news is these businesses have shown what works: great customer
service. They focus on personalizing the experience, making things easy for customers, offering loyalty
programs, and using smart technology.
In this article, we’ll explore these tech strategies and show you how
they can help your business grow, and double the revenue. Keep reading to learn more!
The Importance of Customer Satisfaction
in the Hospitality Industry
Customer satisfaction, which equals exceptional customer experience, is the
backbone of the hospitality industry. It plays a central role in driving revenue and loyalty, as satisfied customers
are more likely to return and recommend a hotel, restaurant, or other hospitality business to others. In fact, a
study by the Harvard Business Review found that a 1% increase in customer satisfaction can lead to a 0.5% increase
in revenue. Moreover, loyal customers are more likely to forgive mistakes and continue doing business with a
company, even if they experience a negative encounter.
Let's quickly review the challenges the hospitality
industry is facing right now so we can move on to the solutions and our case studies.
Challenges in Hospitality
As businesses navigate the changes in the
hospitality industry, there are some key areas where a little improvement can go a long way. From improving customer
service to embracing digital transformation and tackling labor shortages, we’ll take a closer look at today’s
biggest challenges—and, more importantly, how technology can step in to help. Let’s get started!
Poor
Customer Service
Even with strong and high-quality business offerings, poor customer service can
drive potential customers and existing customers away. Common issues include:
Long wait times in customer service queues (it is worth remembering that our attention spans 8 seconds, and we
live in a very busy world, so quick and efficient responses are more important than ever.)
Poorly trained customer service representatives
Lack of follow-up
Services not being done properly or quickly
Recall issues that require multiple service calls
These problems can frustrate customers. But, at Intellectsoft, we believe that the right approach, combined with
technology, can address them effectively.
Digital Transformation Gaps
Approximately 50% of hotels are adopting new technologies, with 43% automating repetitive tasks and 39%
upgrading existing systems. Source: workstaff.app
While many businesses are adopting digital solutions, some
still struggle with outdated systems and fragmented data. Legacy companies often face chaos when trying to manage
their data and create new systems or add features.
Some of the recent examples include clients coming to us to
create AI solutions for their services
while their data simply was not ready for the advanced tasks. We advise stepping back, communicating with a company
objective, and working on keeping the data clean (centralized, structured, and segmented).
When
we’re asked to create advanced systems using AI, we always emphasize the importance of organized data. To train AI
and build such complicated systems that truly work, you need to start from the very beginning—collecting, storing,
centralizing, and organizing it. We encourage our clients to align all departments to work internally on the data so
we can create a unified digital system that delivers personalized experiences.
If you’re unsure where to start
with your data, we can help. Collecting feedback at various touchpoints along the customer journey is crucial for
gaining insights into customer satisfaction and loyalty. Book an IT consultation with us, and our experts will guide
you in mapping out a path to get more from your data and build a system that works for your business and team.
Reskilling Staff
The pandemic hit hard in early 2020, especially for the hospitality and
travel industries. Even five years later, many businesses are still feeling the impact. Recruiting and
retaining skilled staff has become a major challenge post-pandemic.
Reskilling to address technology’s impact is of utmost importance, as about 40% of hotel General Managers
place it among their top three workforce challenges.
We strongly believe that adopting the right technology can help. For example, creating an app to train your staff
not only saves time but also ensures consistency in learning. AI assistants can also work alongside your team,
helping with tasks like recruitment (providing industry insights, crafting emails) and staff training. Imagine
having an app dedicated to making your team’s work easier and more efficient!
How Technology
Tackles These Challenges and Supports a Customer-Centric Hospitality Culture
Automation, AI, and similar
technologies may threaten many. However, the debate about replacing humans isn’t about that—it’s about cooperation
and working hand in hand with technology to achieve the highest standards and establish brand-new “golden
standards.” Technology is here to assist staff in listening to and collecting customer insights from data.
Let’s review some of our cases to see examples of how technology helps improve customer experience and supports
customer service.
Examples of Intellectsoft projects
Property management systems
(PMS)
We created a web platform and mobile app that makes managing daily tasks easier and offers
extra services to improve residents’ experience. It gives a clear overview of daily activities and helps with
managing units and users. Residents can easily book amenities, submit service requests, and report incidents. The
platform also includes features for equipment management, key instructions, workflows, and custom permissions. This
makes it easier for staff to stay on top of equipment and ensure residents have all the information they need. Plus,
tools like announcements, quick votes, a forum, and a community calendar help build a connected and engaged
community.
Guest Experience Management App
Our next app helped our client improve their guest experience by replacing printed
marketing materials and the need for phone calls with a smart solution. Now, guests can easily order in-room dining,
make reservations, and interact with staff— through a simple tablet in their room. The solution includes three
parts: a custom in-room tablet with a variety of services, an admin panel for hotel staff and service providers, and
a backend system that connects everything together. This approach makes things easier for guests and staff,
improving both convenience and efficiency.
Existing Customers First: Building Loyalty with
Personalized Touchpoints
Keeping existing customers is not just a strategy; it’s well-known that
retaining existing customers is more cost-effective than acquiring new ones. In fact, research shows that it costs
five times more to acquire a new customer than to retain an existing one. KPMG named customer retention as the
number one revenue driver for the company.
Moreover, a 5% increase in customer retention can
lead to a 25% to 95% increase in profits, showing the significant impact loyal customers can have on a
business’s bottom line. Retention strategies, like personalized experiences and loyalty programs, can foster
long-term relationships and generate recurring revenue, ultimately making them an invaluable part of any business
model.
Personalization: How Technology Can Help?
Everyone loves to feel special—it’s
part of being human. In hospitality, personalization has evolved from being a luxury to an essential standard. With
the right technology to manage your data effectively, you can deliver those “wow” moments that guests won’t
forget.
More than half of hotel chains are already using personalization features on their websites, booking
platforms, and apps, and another 39% are planning to follow suit soon. They’re tailoring experiences to fit guest
preferences perfectly.
Source: Deloitte
How does
technology make it happen?
CRM Systems: They help you keep track of guest preferences, booking history, and special
requests so you can offer services tailored just for them.
Loyalty Programs: Personalized rewards and offers show your guests that you value them, keeping
them coming back for more.
AI Personalization: AI analyzes guest data to predict what they’ll love (from room upgrades to
local recommendations) before they even ask.
IoT Gadgets: Smart room features like voice-activated assistants, or temperature controls
adjust to your guests’ preferences, making their stay more comfortable.
With tech-powered personalization, you’re building loyalty and maximizing the lifetime value of every
customer.
Our Case Study: Smart Hotel Management & Loyalty Program
For one of our
clients, we created a smart room solution, complete with a custom IoT system. Guests can use a mobile app to
control services, explore amenities, and find resort information-- with a special touch to their suite type. For the
client’s entertainment business, we improved their legacy software by running a full IT and code check, fixing
issues, and making the system better for customers.
Along with that, we developed a mobile app for the loyalty
program, allowing businesses to effortlessly reward their customers and keep them engaged with exclusive
benefits.
Our solutions not only helped the client with special experiences for guests; it also improved
operations, cutting costs by eliminating inefficiencies. Here's what our experts shared:
"We
transitioned away from ESB (Enterprise Service
Bus) systems, which previously cost millions, and replaced them with more efficient, self-managed solutions.
Similarly, we’ve implemented Device Farms that improved operations
and saved resources."
Leveraging Software to
Increase Upsell Opportunities
Here are some examples of tech tactics that will help your team sell more and
introduce new offerings to existing customers, improve overall efficiency leaving your team grateful:
Dynamic Pricing Algorithms
For finance and marketing teams, manually calculating pricing by segment to
introduce your clients can be incredibly challenging. AI-powered tools can strongly optimize these strategies by
analyzing your database in detail.
Upselling via Apps
Boosting revenue in the
hospitality business often comes down to personalized experiences. Imagine this: a guest books a room, and then your
app suggests a spa package or a room upgrade at just the right moment. Later, it nudges them to book a dinner
reservation or a guided tour designed to their preferences. With apps offering these personalized recommendations
during and after bookings, you’re not just increasing your revenue per guest but also skyrocketing their experience.
And you do it in a sustainable way, not by speculating, but by offering what your customers desire based on their
previous experiences. It’s a win-win: seamless, helpful, and far from pushy.
Inventory and Resource
Management Software
Making every resource count in your hospitality business is key. Inventory and
resource management software allows you to effortlessly track everything from linens to room availability, ensuring
nothing goes to waste. Having real-time insights to reduce overstock, avoid shortages, and optimize operations
assists sustainably keep everything under control and know what you need to focus more. It helps maximize room
occupancy by aligning bookings with available resources, ensuring every room and item is used effectively. This
approach leads to smarter management, better guest experiences, and a noticeable boost to your bottom line.
Adopting these strategies not only optimizes your operations but also drives business growth. Ready to discover how
technology can elevate your goals? We’re here to create a tailored solution for you.
Steps For Implementing a Customer Service
Technology Solution
Improving customer service in hospitality doesn’t have to be a daunting task. With the
right technology, you can smooth the path of your operations, speed up response times, and elevate the overall guest
experience. Here’s where you can make it happen:
1. Understand Your Needs
Start by
identifying the challenges your business is facing. Are you struggling to manage high volumes of inquiries, track
customer feedback, or personalize the guest experience? Pinpointing your needs will guide you to the best
solutions.
2. Pick the Right Tools
Choose technology that aligns with your goals. Look
for solutions that are scalable, easy to use, and integrate effortlessly with your current systems. Options like CRM
software, live chat tools, or a guest experience app can make a difference.
3. Equip Your
Team
Technology is only as effective as the people using it. Train your staff to make the most of the
new tools, so they can deliver exceptional service and resolve issues quickly. Confident, well-equipped staff
creates happy, loyal customers.
4. Keep Improving
Once implemented, monitor how well
the solution works. Are response times improving? Are customers more satisfied? Regular evaluations will help you
fine-tune your approach and keep things running harmoniously.
Some Tech Ideas for Hospitality
Businesses
CRM Software: Manage customer interactions and preferences.
Guest Experience Apps: Delight guests with personalized experiences right at their fingertips.
Amenity Management Systems: Simplify operations for everything from room service to facility
bookings.
Live Chat Tools: Offer instant support and answers.
Social Media Management Tools: Keep customer interactions engaging and organized.
Integrating these strategies will not only improve your customer service but also deliver unforgettable customer
satisfaction, loyalty, and, ultimately, your bottom line. Ready to take the next step? Book a consultation with our
experts.
Conclusion
To wrap up everything we've discussed, customer satisfaction and
experience are at the heart of hospitality. Retaining customers is more than just keeping them around—building
strong, long-lasting relationships and consistently meeting their evolving needs. By understanding their pain points
and offering personalized solutions, you can inspire loyalty and drive progress. With the right technology and
continuous improvement, your business can stay ahead, let go of what no longer serves you, and keep growing.
At Intellectsoft, with over 17 years of experience in software
development, our expert team is ready to help. We create everything from mobile apps to full-fledged portals and
systems, leveraging the latest technologies like AI, Cloud, and Machine Learning. With deep experience in the
hospitality industry, we’re here to craft personalized solutions that bring your business unforgettable customer
experience and retain your valuable clients.
Ready to double your revenue and level up your customer retention
strategy with personalized technology? Contact our experts, and
we look forward to working hand in hand with you to build or revitalize the perfect app or system for you.
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