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Extended Team vs. Managed Team vs. Software Outsourcing

A Powerful Trident Software outsourcing should not be a one-size-fits-all process. Depending on the stage or scope of a project, there are at least three...

Damian Scalerandi

By Damian Scalerandi

SVP of Professional Services Damian Scalerandi leads every step of IT project delivery with multi-cutural teams to help accomplish client goals.

10 min read

Extended team of software developers working in an office

A Powerful Trident

Software outsourcing should not be a one-size-fits-all process. Depending on the stage or scope of a project, there are at least three options to help project managers assign the workload between an in-house and an outsourcing partner. Extended teams, managed teams, and outsourced teams all serve a slightly different purpose, so managers should evaluate which option best suits their current project.

Here are the notable differences to consider when choosing a solution that could help advance your business.


What is an extended team?

An extended team model allows you to integrate top engineers into your in-house team, even if they work from abroad. Instead of outsourcing the entire development process – including management – your project manager remains in charge of the process, sharing the project between an in-house team and a small group of top engineers. The extended team model increases the capacity and flexibility of your team, allowing you to scale projects quickly and deliver products on time while remaining fully in charge of all aspects of the development process.


What is a managed team?

A managed team is the intermediate option between an extended team and a completely outsourced solution. This approach allows BairesDev to apply the highest skilled engineering talent while sharing the risk and responsibility for delivering quality results. This team works autonomously from your in-house team, but the outsourced Project Manager reports to the in-house Product Owner as often as needed to ensure the product meets your requirements. Key decision making roles are designated first to establish the rules of engagement and communication as well as make critical design decisions. Teams are quickly spun up around functional areas, from Software Architect to Scrum Master.


What is an outsourced team?

An outsourced team is the most traditional, and least hands-on option. Based on the needs of your team, you may opt to send your specifications to an outsourced team who will complete all the development and return a finished product by a specific deadline. In this case, your project manager will only be in touch with the development team sporadically and will not be burdened with management. From smart customization of pre-developed platforms to full-cycle custom software development, BairesDev is an experienced development partner that delivers reliable and cost-effective custom software solutions.


How to choose the right outsourcing option for your project:

The kind of software outsourcing you choose depends on the level of flexibility you require, and the amount of time your project manager can dedicate to the team.

For example, if you are developing a brand-new line of products for your startup, you may need to quickly change and iterate the software as you create a better solution for your customers. In this case, an extended team may be the best option; your project manager can continuously update the project because there is no set work agreement. The extended team functions precisely like your in-house team, allowing you to quickly scale and deliver projects on your terms, without adding new people to the office.

However, an extended team might not be a suitable option for a large company that is regularly releasing new software and whose project managers are already overburdened. In this case, an outsourced team might be a better option, since it adds little to no work for the project manager, and the project will be delivered complete and on-time. You create a contract and set work agreement from the start and send over specific projects to be completed by the external team, with much less room for last-minute changes.

By comparison, a managed team could be the appropriate solution for a project that falls in the middle of these two options. If your project manager is short on time, but you still require a level of in-house supervision and flexibility for your project, consider hiring a managed team to fill in the gaps.

The right outsourcing model for your company will always be the one that finishes a project within the deadline and to your exact specifications. At BairesDev, we offer a range of options to augment and support your development teams to help you scale and deliver products on time. Whether you choose an extended team, a managed team, or an outsourced solution, your company will benefit from faster project completion times and the savings received from outsourcing some of your development work.

Damian Scalerandi

By Damian Scalerandi

Damian Scalerandi is SVP of Professional Services at BairesDev. Damian leads every step of IT projects from design through project delivery. His 10+ years of experience in the tech field helps him lead globally diverse teams on large-scale tech projects.

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