Team Extension vs. Dedicated Development Team

It's awe-inspiring to think about how technology has altered the way we live. Software has become the core of almost every successful company out there. It's like having an all-purpose tool that boosts the productivity, efficiency, and satisfaction of your customers all at once. Who wouldn't want to have that?

According to Gartner, worldwide spending for IT and development will be $4.6 trillion, which is an increase of 5.5 percent from last year. In addition, 91% of companies have invested in something that is digitally transformed.

Therefore, the market is becoming ever more crowded with software applications. Businesses are forced to develop better applications within shorter time frames because if you don't join the party, then you'll get out of the game.

To solve this problem, IT outsourcing to a third party can be an effective solution.

Two options are on this page: either the extended model for software teams (one that bolsters the team in-house with external staff members) or the dedicated model for development teams (one that is solely focused on a particular project).

Develop your Development Capabilities without Compromising on Quality

For those who are new to outsourcing, understanding the advantages and drawbacks of each model and determining the best time to utilise either can be a challenge. To assist CTOs in making informed choices, we have developed this extensive guide, which seeks to clarify the differences between team extension and a dedicated development team.

A Brief Overview of the Software Team Extension Model

The first step is to begin by knowing the concept of an extended team for development and how it functions before examining the benefits and drawbacks that it provides.

What's the Extended Team Model?

The model for extending your software team is based on bringing in professionals from outside who are committed to their time and experience for your business.

The extended team seamlessly blends into your business, embraces the culture of your company, and works to achieve shared goals as a part of your team.

As they are additional members of your team, you're responsible for overseeing all aspects of the process, which includes monitoring, coordinating, and evaluating the tasks you assign to them. However, this is contingent on whether you employ the candidates from recruitment platforms or consult with IT staffing companies to outsource. If you choose to hire them from the latter, you may partner with an IT consulting firm to handle hiring, onboarding, and alignment with your organisation's culture.

The extended model of a software team is the best solution when you need to enhance the capabilities of your developers or require specialists with specific expertise. Another term frequently used to describe team expansion is "IT staff augmentation," an approach that is frequently used by firms for medium- to small-sized projects.

What is a Team Extension?

A web development team that is extended differs from project-based teams by the fact that the project isn't over when the project is completed. It's the ongoing relationship between your team in-house as well as an extended team that is located off-shore.

How extended teams function will differ for different businesses because they have various engagement strategies. But a few key features make it stand out from the rest:

Team extension is meant to enhance your current workforce, not take them away.

While your core team is onshore, your extension team is working from offshore locations.

You are in complete control of the project.

Regular communication between your staff in-house as well as the developers on your off-site site.

The extended team functions as a tightly knit and unified group.

Direct and constant communication ensures that everyone is on the same level.

In essence, each person on the team is committed to the creation process and responsible for its ultimate performance, or lack thereof.

The Advantages of the Software Team Extension Model

What are the benefits of bringing different skill sets to your existing team while maintaining your core competencies within the company? Let's discuss the benefits that team expansion services can bring!

The Software Team Extension Model Benefits

Gain access to the global talent pool

Another benefit of outsourcing IT team extensions is the assistance you receive through a talent pool that is provided by an outsourced partner. This lets you swiftly hire specialists without having to pay additional costs for recruitment.

Flexibility without compromising control

One of the main advantages is the flexibility that it provides, as you have complete control. You are able to control the workflow of your team in accordance with your requirements, prioritise tasks, and establish goals for your project in accordance with your business needs.

Knowledge Sharing

In terms of innovation, it's essential to have a team that is willing to think outside the box and is driving the digital transformation process. The exchange of information between two parties adds enormous value to your venture and helps you effectively deal with any issues that arise in the process and offer new ideas.

Complete Transparency

The hiring method in the model of extended teams relies on an open material and time basis. This allows you to easily estimate the cost based on the experience and expertise of the developer you select. There is no need to fret about any additional costs, such as allowances, equipment facility salaries, or any other unexpected expenses. The financial aspect becomes simple and easy to understand.

The Drawbacks of this Model Software Team Extension Model

In any outsourcing or software development model, there could be obstacles that can impede development progress and cause more time and expenses. Let's review these issues:

Communication Issues

While your core team may be working well together, the team members who are part of your extended team require an amount of time to understand the practices of communication that are in place. This involves educating themselves on procedures for updating as well as meetings and communication channels.

Collaboration Hurdles

Like communication, establishing effective teamwork can also require some time to adjust. All team members, whether new or existing, should build respect and mutual understanding prior to being able to work closely and effectively.

More Management Needs

In order to speed up the process of establishing collaboration, communication, and other important aspects, more proactive management is required prior to the start. Managers play a vital role in establishing the appropriate conditions for existing and outsourcing development teams to be in sync.

Hire a team of software developers to work as an extension of your team to provide results-driven solutions.

A Brief Overview of the Dedicated Development Team Model

Once you've figured out what it takes to expand your group, let's look through the fundamentals of the dedicated team for software development.

What is a Dedicated Software Team?

Affirmed Software Team

In the dedicated team model, customers who do not have their own development resources are able to benefit from the full support of experts, such as project managers, developers, and UI/UX designers. They also work with business analysts, testers, QA, and more.

If you choose to hire an expert team for software development, they'll know what you want and will take complete responsibility for the undertaking. They work with experts who have the appropriate abilities and expertise to manage the management of projects, analysis, and pricing, and then build the software you want.

As Deloitte has stated in its global outsourcing survey for 2022, there are two kinds of services provided by third parties:

Managed services: volume-driven engagement with different levels of skill

The traditional outsourcing model involves cost estimation through delegating tasks that are not core.

In this respect, the model that is dedicated is a step beyond these two models and encourages a high degree of collaboration, with a particular emphasis on technology, skills development, and a results-oriented method.

How does the Model of Dedicated Teams Function?

The result is the basis of a strategic partnership between an organisation that is looking for specialised abilities (the demand aspect) and an organisation that develops software (the supply side). Both parties work together to build the best framework to work in tandem, sharing and distinct domains of accountability.

The development partner agrees to constantly source the right talent in line with the requirements and qualifications demanded for the job by their client. They might also have obligations related to the retention of talent or team performance as well as the replacement of candidates.

From the side of the client, they're responsible for controlling the process. This includes integrating the team members into their business processes as well as sharing plans for their products, ensuring that daily tasks are assigned, and overseeing the overall project.

In accordance with the terms of the contract, the development team can assist with other aspects like improving the process of development as well as team infrastructure setup and alignment with the operational team, for example.

For instance, at PerfectionGeeks, we help our clients adopt Agile methodologies for managing projects and implementing efficient CI/CD strategies to speed up and improve the efficiency of software engineering.

Advantages of the Dedicated Team Model

No project responsibilities

In the first place, there's no need to stress about the intricacies that accompany your journey through digital. When you hand over an undertaking to a dedicated team, you'll be free of the concerns of group structure, technology stack selection, project design and software architecture patterns, the setup of hardware, and more. They will take full responsibility in these areas to allow you to concentrate on the business you are focusing on without worry.

Total Ownership

The dedicated development team model ensures that you are the sole owner of the product in its final form. Even though the team develops the codebase and creates the product from scratch, you'll receive the entire project's artefacts together with the correct documentation once the project is complete.

Experienced Management

A team of dedicated employees includes an experienced project manager who is responsible for overseeing and directing the day-to-day activities. They directly report to you, allowing you to remain on top of the situation and be fully up-to-date regarding the progress of your project.

This hands-on approach provides you with peace of mind and allows you to concentrate on your business while the software development process goes effortlessly.

Business Training

You'll need a trusted partner who is familiar with your company's needs or industry and knows the requirements of your product. Employing an exclusive development group model allows you to choose a partner who is not just a developer but also has skilled developers, solution designers, consultants, and testing experts. These professionals ensure complete and effective project execution.

Feel the flexibility of our professionally dedicated developers, who can easily adapt to changing processes and goals.

The Drawbacks of a Dedicated Team

While the team-based model has many advantages, however, you need to be aware of the possible drawbacks:

It is not recommended for projects that are short-term

In this scenario, instead of hiring individuals, you're bringing the entire team together. This will, in turn, cost you an amount of time and costs for hiring. Therefore, even though this method is faster than hiring in-house, it might not be the most cost-effective choice for short-term projects.

Risks of compliance

The most significant drawback of this model is the risk of compliance, and around 40 percent of CTOs agree that compliance risk is their primary worry. Particularly, sectors like finance and healthcare have strict guidelines regarding the storage of data, information sharing, data storage, and general technology governance.

Operational Alignment

In any strategic partnership, the strength of your internal support is essential. The key stakeholders need to be in agreement with the decision to join the team of dedicated developers and be committed to a high degree of cooperation. The constant change in project scope and requirements could delay progress and decrease effectiveness.

Team Extensions vs. Dedicated Development Team What are the differences?

Let's look at it in detail! While both the team extension model and the dedicated model of development are facets of outsourcing software development services, They are distinct due to certain factors. Here are seven important aspects:

The nature of engagement

Software team extension functions more as an ad-hoc collaborative that allows you to temporarily add more resources to supplement the existing team for a specific task or project.

However, an ad-hoc development team is an established and self-sufficient team that is working on a long-term project that usually only works for one client.

The Duration of Collaboration

Expanding your team of software experts is a temporary arrangement that typically lasts the duration of a specific phase or until the company needs more expertise.

However, when you hire dedicated developers, this implies an extended commitment. They will remain committed to the project for a prolonged time frame and guarantee seamless, continuous project progress.

Team Structure

A team member extension typically collaborates with your team using their particular capabilities and experience.

A dedicated team of software is composed of the specialists needed for the project and, as such, is one unit that works closely throughout the entire life cycle of the project.

Project Control

Between dedicated teams and extended teams, the scope of project management differs.

In the first case, the client has complete control, and they are able to give more power to their committed team. This allows them to make independent decisions.

When you expand your team, you have the ability to control the project because team members generally follow the instructions of your team's core members.

Flexibility and Scalability

Team Extension gives more flexibility in quickly scaling teams of software developers in response to the changing needs of the project.

While you may increase the team's size, the structure of a dedicated team is designed to ensure stable and consistent work.

Collaboration and communication

A larger team could encounter communication difficulties because of their geographical dispersion and not having a good understanding of the internal processes of the client.

However, a dedicated team of developers is a more united unit, typically creating greater communication and an improved understanding of your needs in terms of technology as well as your business objectives and workflow.

Resource Allocation

With the model of software team extension, it is possible for businesses to utilise specific skills to accomplish short-term projects without having to commit to the long-term allocation of resources.

The model of dedicated teams provides clients with ongoing projects to take advantage of the security of a reserved team of resources exclusively dedicated to the success of their project.

Conclusion

The dynamic tech landscape has fueled a surge in IT spending, driving businesses to innovate rapidly in software development. To meet this demand, IT outsourcing offers two key models: software team extensions and b>dedicated development teams. The former integrates external professionals into existing teams, enhancing capabilities and accessing a global talent pool. While offering flexibility, it may face communication and management challenges.

The latter, a strategic partnership with a full-fledged team, provides total ownership, experienced management, and business-oriented training. However, it's less suited for short-term projects and entails compliance risks. The choice between the two hinges on project specifics, with each model offering distinct advantages and considerations. Reach out to us if you want a dedicated team.