Because 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 that develop software, but an organization may need an entire outsourced team to produce a specific application. For example, a group that develops primarily phone apps may need an entirely separate team to develop an in-house enterprise application.
Or the team may need to be augmented with engineers who have additional skills for a specific project, such as professionals with experience in financial services to create a fintech app. In both cases, software development outsourcing agencies like BairesDev can help.
The two software development outsourcing models described above are known as a delivery team or dedicated team (one that is dedicated to a particular project) and an extended team (one whose core staffing is extended with outsourced members). Companies that have never taken advantage of outsourcing agencies may be confused about dedicated team vs. extended team advantages and disadvantages, as well as when to use each model. We have developed this comprehensive guide to help team leaders make those important decisions.
What Is the Dedicated Software Team Model?
Dedicated software development teams are led by a manager at 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 in-house teams that are already in place plus additional team members provided by a development agency. The extra team members extend the capabilities and capacity of the established in-house team.
Dedicated Team vs Extended Team: The Differences Explained
The following table presents some of the similarities and differences between the dedicated and extended team models.
| Dedicated Software Team | Extended Team | |
|---|---|---|
| Popularity | Often preferred by businesses looking for high control over resources and processes. | Popular with businesses looking to add specialized skills to their existing team. |
| Applications | Ideal for long-term projects where a team is fully allocated to work on the project. | Suitable for enhancing the existing team with specialized skills or for short-term projects. |
| Key Advantages |
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| Key Disadvantages |
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| Cost-Effectiveness | Can be cost-effective for long-term projects due to the dedicated nature of the team. | Generally cost-effective for short-term projects or when needing specialized skills for a limited time. |
| Infrastructure | Typically provided by the hiring company or the outsourcing company. | Infrastructure could be shared between the core team and the extended team. |
| Training | Requires orientation and possible training in company-specific tools and processes. | Requires integration with the existing team and understanding of the project scope and tools. |
| Communication | Regular and direct communication with the team is expected. | Communication might be more complex due to the integration with the existing team. |
| Flexibility | Less flexibility as the team is fully dedicated to one project. | High flexibility as resources can be quickly scaled up or down as per project needs. |
| Security | High; as you can set the security standards and protocols. Explain: You can directly control the security practices and protocols the team follows. | Mid; you share control over security with the vendor. Explain: While you can set 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 extended team uses the tools and follows the processes of the existing team. |
| Agreements | Generally requires long-term commitment due to the dedicated nature of the team. | Can be both short-term and long-term, depending on the project requirements and business needs. |
Dedicated Software Development Team Model Advantages
The dedicated development team model advantages listed here are described in more detail in the sections below.
- Flexibility
- Scalability
- Access to variety of skills
- Cost-effectiveness
All these advantages add up to high-level benefits for your company, such as faster time-to-market and competitive edge.
Flexibility
You may hire additional professionals with the needed skills, but this approach may not always work, given that 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 given time.
Scalability
Putting together a dedicated team is much faster than hiring individuals for an in-house team. Software development agencies maintain a talent pool of engineers and other professionals who can often be brought on within a matter of days. This speed enables companies to quickly assemble teams for specific long-term projects and remove them when those projects are completed.
Access to Skills
A dedicated team doesn’t need to be trained. Team members are already prepared with the skills you need to complete your projects. That is the case even if you need niche skills because software development outsourcers have access to professionals across the globe.
Cost-effectiveness
Adding talent to an existing team can be expensive if you’re only looking in your local area or region. But when you can consider providers anywhere in the world, you can choose the pricing that works best for your needs. For example, North American software development providers commonly charge between $70 and $150 per hour, while Latin American providers like BairesDev typically charge much lower rates, between $25 and $50 per hour for similar quality.
Dedicated Development Team Model Disadvantages
The dedicated development team model disadvantages listed here are described in more detail in the sections below.
- Communication
- Security issues
- Extensive ramp-up
These disadvantages can add up to time and money lost to issues that could overshadow the benefits of this approach.
Communication
Every development provider has its own communication practices. While some of them may work perfectly with yours, others may not. For example, some providers may be resistant to issuing updates as frequently as you would like. Others may not have strong skills in your language.
Security Issues
Any time you hire an external team to work on your projects, you subject yourself to the possibility of information being leaked or stolen. Professional service providers take steps to ensure your data is kept secure. But no methods are 100% effective.
Extensive Ramp-up
While a dedicated development team may have excellent skills, they will still need to be brought up to speed with your project and the way your company works. Such ramp-up time is fine for long-term projects but may not be worth it for smaller tasks.
When to Hire a Dedicated Development Team
Some situations that can benefit from the use of 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 yet not be ready to hire resources to take on such projects. By outsourcing development, they can focus on other important matters such as promoting their products.
A company already has an in-house team but is assigned a project too large and complex for it to manage: In this situation, the dedicated development team takes on overflow work from the established in-house team. It may also be an opportunity to bring in engineers with skills needed but not held 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 meant to be deployed for long-term projects and are typically priced to reflect that duration. A dedicated team can work over time to develop one large project or several related smaller ones.
Extended Team Advantages
The extended development team model advantages listed here are described in more detail in the sections below.
- Gap filling
- Hiring relief
- Incremental hiring
- Speed and efficiency
All these advantages add up to high-level benefits for your company, such as increased capacity and higher-quality products.
Gap Filling
The primary advantage of the extended team model is access to talented professionals who can fill skill gaps on your team. It’s a perfect solution when you have a great team in place but just need to supplement their expertise.
Hiring Relief
Access to extended team members comes without your company having to go through the often-cumbersome process of searching for, 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 an opportunity to hire on an incremental basis—that is, to hire one or more team members at a time to supplement the existing team. This approach is useful in situations where only a small increase in capacity or specific skills are needed.
Speed and Efficiency
With extended teams, members brought on through an agency are already highly qualified in their areas of expertise. Once on board, they quickly learn the processes required to accomplish company goals. Together with the core team, these professionals increase the speed and efficiency with which projects may be completed.
Extended Team Disadvantages
The extended development team model disadvantages listed here are described in more detail in the sections below.
- Communication issues
- Collaboration challenges
- Need for more management
These disadvantages can slow down work and end up adding time and costs to projects.
Communication Issues
Your core team might work together seamlessly, but it may take some time before extended team members learn communication practices. They may 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 needed to establish close collaboration. Both existing and new team members must build trust before close collaboration can occur.
Need for More Management
To ensure communication, collaboration, and other matters get established as quickly as possible, more management may be needed up front. Managers must create conditions to get existing and new members working together as a single team.
When to Hire an Extended Development Team
Some situations that can benefit from the use of an extended development team include the following.
An in-house team is struggling with a specific skill gap: A development team can be highly skilled and competent yet lack the knowledge to complete certain tasks. In these cases, extending the team with agency-provided members trained in specific areas is the perfect solution.
The established development team needs temporary support to take on additional work: Burnout is one of the main drivers of the Great Resignation, especially within technology. Companies that drive their engineers too hard risk losing them or getting lower-quality results. Therefore, when deadlines get tight, smart organizations bring on additional staff to support the core development team.
A company needs to quickly expand the size of the core development team: Sometimes a company knows it needs to hire more engineers but doesn’t have the time or bandwidth to perform a time-consuming talent search. In these cases, the extended development team model can bring in new team members quickly and effortlessly.
What Are the Other Options?
BairesDev offers both dedicated and extended team options. Our extended team service is called staff augmentation. It is a proven, reliable, and cost-effective way for our clients to increase the size and productivity of their internal development teams with minimal time. Additionally, we offer software outsourcing services. Separately, companies can choose to use an in-house team model. We describe these two options further in the sections below.
Software Outsourcing Services
Software outsourcing enables businesses looking to achieve technological objectives to do so even if they don’t have a solid in-house tech team to turn to. Software outsourcing services involve working with a third-party team with special skills and expertise ranging from UX design to blockchain consulting.
Outsourcing software developers allows organizations to develop high-quality software products cost-efficiently. From simple mobile app development to smart customization of pre-developed platforms to full-cycle custom solutions, BairesDev is an experienced development partner ready to deliver reliable custom software solutions.
In-house Team
In today’s ever-changing development environment, companies need more flexibility than in-house teams can often provide. While an in-house team may possess certain core talents, their expertise might not extend to projects outside of certain parameters, including custom software development.
Custom software development services from BairesDev enable companies to access the top 1% of tech talent and create unique software solutions. We build tailored development plans that match each organization’s needs and guarantee high-quality delivery for all tech projects, regardless of their nature or complexity. Whether customizing a platform, developing prototype applications, or implementing complex technology solutions, our globally distributed team of experts is ready to get on it.
Conclusion
As we have seen, both dedicated and extended teams have their advantages. Dedicated teams are great for long-term projects, while extended teams work well for enhancing existing skills. But no one solution is right for every company or even every situation within one company. BairesDev understands this situation very well and is pleased to offer assistance with choosing the right approach for your project. We invite you to contact us today and we look forward to discussing your needs.
