Dedicated team versus extended team: which is the right option for your business? Our comprehensive guide covers the differences to help you make an informed decision.
As software development projects vary considerably, so do software development teams. Many configurations are possible, including in-house teams, outsourced teams, or a combination of the two. In-house teams are a good starting point for most companies developing software, but an organization may need an entire outsourced team to produce a specific application. For example, a group that primarily develops phone apps may need an entirely separate team to develop an in-house business app.
The two software development outsourcing models described above are known as delivery team or dedicated team (one that is dedicated to a specific project) and extended team (one whose core team is expanded with outsourced members). Companies that have never taken advantage of outsourcing agencies may be confused about the advantages and disadvantages of dedicated versus extended staff, as well as when to use each model. We've developed this comprehensive guide to help team leaders make these important decisions.
What is the dedicated software team model?
Dedicated software development teams are led by a manager from your company and act as internal project teams. But these teams are external to the company, and team members are hired by a development agency, not your company.
What is the extended team model?
Extended development teams are internal teams that are already in place, plus additional team members provided by a development agency. Extra team members expand the capabilities and capabilities of the established internal team.
Dedicated Team vs Extended Team: The Differences Explained
The following table presents some similarities and differences between the dedicated and extended team models.
| Dedicated software team | Extended team | |
|---|---|---|
| Popularity | Often preferred by companies seeking high control over resources and processes. | Popular with companies looking to add specialist skills to their existing team. |
| Forms | Ideal for long-term projects where a team is fully allocated to work on the project. | Suitable for strengthening the existing team with specialized skills or for short-term projects. |
| Main advantages |
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| Main disadvantages |
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| Cost benefit | It can be cost-effective for long-term projects due to the dedicated nature of the team. | Generally economical for short-term projects or when specialized skills are required for a limited period. |
| The infrastructure | Typically provided by the contracting or outsourced company. | The infrastructure could be shared between the core team and the extended team. |
| Training | Requires guidance and possible training on company-specific tools and processes. | Requires integration with existing team and understanding of project scope and tools. |
| Communication | Regular and direct communication with the team is expected. | Communication can be more complex due to integration with the existing team. |
| Flexibility | Less flexibility because the team is fully dedicated to one project. | High flexibility, as resources can be quickly increased or reduced according to project needs. |
| Security | High; as you can set security standards and protocols. Explain: You can directly control the safety practices and protocols your team follows. | Average; you share control over security with the vendor. Explain: While you may define some security practices, the vendor also plays a role in security and you will be somewhat dependent on their practices. |
| Tools and Processes | You have control over the tools and processes used by the team. | The expanded team uses the tools and follows the processes of the existing team. |
| Agreements | It usually requires long-term commitment due to the dedicated nature of the team. | It can be short term and long term depending on the project requirements and business needs. |
Advantages of the Dedicated Software Development Team Model
The advantages of the dedicated development team model listed here are described in more detail in the sections below.
- Flexibility
- Scalability
- Access to diverse skills
- Cost benefit
All of these advantages add up to top-notch benefits for your company, such as faster time to market and competitive advantage.
Flexibility
You can hire additional professionals with the necessary skills, but this approach does not always work, as conditions can change quickly and the people you hire today may not be useful tomorrow. Dedicated teams , on the other hand, allow you the flexibility to hire exactly the skills you need at any time.
Scalability
Assembling a dedicated team is much faster than hiring people for an in-house team. Software development agencies maintain a pool of talented engineers and other professionals who can often be hired in a matter of days. This speed allows companies to quickly assemble teams for specific long-term projects and remove them when those projects are completed.
Access to skills
A dedicated team does not need to be trained. Team members are already equipped with the skills needed to complete your projects. This is the case even if you need niche skills because software development outsourcers have access to professionals across the world.
Cost benefit
Disadvantages of the dedicated development team model
The disadvantages of the dedicated development team model listed here are described in more detail in the sections below.
- Communication
- Safety problems
- Large increase
These disadvantages can result in wasted time and money on issues that could overshadow the benefits of this approach.
Communication
Each development provider has its own communication practices. While some of them may work perfectly with yours, others may not. For example, some providers may resist issuing updates as frequently as desired. Others may not have strong language skills.
Safety problems
Whenever you hire an external team to work on your projects, you open yourself up to the possibility of information being leaked or stolen. Professional service providers take steps to ensure your data is kept secure. But no method is 100% effective.
Large increase
While a dedicated development team may have excellent skills, they will still need to be up to date with your project and the way your company operates. This start-up time is good for long-term projects, but may not be worth it for smaller tasks.
When to hire a dedicated development team
Some situations that may benefit from using a dedicated development team include the following.
A startup needs to develop software but is not ready to hire in-house engineers: Startups are great candidates for hiring dedicated development teams because they may need applications developed but are not ready to hire resources to take on such projects. By outsourcing development, they can focus on other important matters like promoting their products.
A company already has an in-house team, but is given a project that is too large and complex to manage: In this situation, the dedicated development team takes over the excess work from the established in-house team. It can also be an opportunity to bring in engineers with skills needed but not possessed by any member of the core team.
A company already has an in-house team, but is assigned one or more projects that will be ongoing for a year or more: Dedicated development teams are intended to be deployed on long-term projects and are typically priced to reflect that duration. A dedicated team may work over time to develop one large project or several smaller, related projects.
Extended Team Perks
The advantages of the extended development team model listed here are described in more detail in the sections below.
- Fill in the gaps
- Relief Hiring
- Incremental Hiring
- Speed and efficiency
All of these advantages add up to high-level benefits for your company, such as increased capacity and higher quality products.
Fill in the gaps
The main advantage of the extended team model is access to talented professionals who can fill skills gaps on your team. It's a perfect solution when you have a great team but just need to complement their knowledge.
Relief Hiring
Access to extended team members occurs without your company having to go through the often complicated process of searching, interviewing and hiring employees. This advantage gives your HR team the ability to focus on higher-value tasks.
Incremental Hiring
The extended team model gives companies the opportunity to hire incrementally – that is, hire one or more team members at a time to complement the existing team. This approach is useful in situations where only a small increase in capacity or specific skills is needed.
Speed and efficiency
With expanded teams, members hired through an agency are already highly qualified in their areas of expertise. Once onboarded, they quickly learn the processes necessary to achieve company goals. Together with the core team, these professionals increase the speed and efficiency with which projects can be completed.
Disadvantages of the extended team
The disadvantages of the extended development team model listed here are described in more detail in the sections below.
- Communication problems
- Collaboration Challenges
- Need for more management
These disadvantages can slow down work and end up adding time and costs to projects.
Communication problems
Your core team may work together seamlessly, but it may take time for extended team members to learn communication practices. These can include processes for meetings, updates, and online communication tools.
Collaboration Challenges
Just as it takes time to establish effective communication practices with new team members, an adjustment period may be required to establish close collaboration. Both existing and new team members must build trust before close collaboration can occur.
Need for more management
To ensure that communication, collaboration, and other matters are established as quickly as possible, more management may be needed upfront. Managers must create conditions for new and existing members to work together as a single team.
When to Hire an Extended Development Team
Some situations that may benefit from using an extended development team include the following.
An internal team is struggling with a specific skills gap: A development team may be highly skilled and competent, but lack the knowledge necessary to complete certain tasks. In these cases, expanding the team with members provided by the agency and trained in specific areas is the perfect solution.
Established development team needs temporary support to perform additional work: Burnout is one of the main drivers of the Great Resignation, especially in technology. Companies that demand too much from their engineers risk losing them or obtaining substandard results. So when deadlines get tight, smart organizations hire additional staff to support the core development team.
A company needs to quickly expand the size of its core development team: Sometimes a company knows it needs to hire more engineers but doesn't have the time or bandwidth to conduct a time-consuming talent search. In these cases, the extended development team model can bring new team members quickly and easily.
What are the other options?
Software Outsourcing Services
Software outsourcing allows companies looking to achieve technology goals to do so, even if they don't have a solid in-house technical team to turn to. Software outsourcing services involve working with an outsourced team with special skills and knowledge ranging from UX design to blockchain consulting.
In-house team
In today's ever-changing development environment, companies need more flexibility than in-house teams typically provide. While an in-house team may possess certain core talents, their experience may not extend to projects outside certain parameters, including custom software development.
Conclusion
Source: BairesDev
