Latest Guide to the Extended Development Team Model

IT business experts keep saying “offshoring is the best way to reduce costs” or “try outsourcing to make the development process budget-friendly”. And it's quite recently that we've started hearing “the most reliable and transparent way to build a product is nearshoring” or “hire an extended development team to create quality software”. With so many concepts in use, no wonder, startup founders frequently get confused.

Well, if you've also got lost, stop panicking and just read this article! Here, we reveal all the notions and place an extra focus on the extended team model.

Time to Finally Sort It Out

So, what is the difference between offshoring, outsourcing, nearshoring, and the extended team model? And is there any difference at all? Let's find out!

First of all, you need to understand that outsourcing is an umbrella term for the processes connected with delegating certain tasks to third-party providers. Depending on the business goals and the service provider’s location, outsourcing can be divided into three types — onshoring, offshoring, and nearshoring.

Thus, if you want to make use of a quality workforce and the latest technologies of your home country, go for onshoring. This business model will allow you to entrust a certain development stage to a third party that shares your language, culture, and is located in a very similar time zone. At the same time, as a rule, this solution turns out to be not so budget-friendly.

In case you wish to reduce operational costs in your company or find the developers with a favorable price tag, try offshoring. It's the practice of relocating core business processes (like HR management, legal consultancy, accounting, or marketing) or product development far abroad with the aim of cost & tax optimization. Thus, certain American companies take advantage of the cheaper accountant services provided by Philippine or Indian firms.

If you feel uncomfortable with different time zones, languages, or cultural environment of the offshore service provider, and you can’t afford onshore services, you may resort to nearshoring. This solution takes the best out of both practices. Thus, your nearshoring partner will be located in the same geographical region (which means the similar cultural and linguistic background) and will be able to offer you appealing prices.

Today, all types of outsourcing keep conquering the business world. By the way, the research by Deloitte shows that 65% of successful companies (from 45 countries) include outsourcers in their delivery model. Still, finding a truly reliable outsourcing partner to enjoy the quality of third-party development can turn out to be a hard task to accomplish.

At the other end of the scale, we have the extended software development team model (ETM). Those who want to get experienced full-time developers for a long-term project and stay completely involved into the process, choose this option. How does it work? Well, you turn to a trustworthy development company and hire their team for the time sufficient for full-scale product development. In this case, your software engineers work in close collaboration with the extended ones, that's why the process is also known as a dedicated team model or staff augmentation.

Extended Team Model: Key Benefits

Well, we've found out that the extended development team model differs from traditional outsourcing. But what benefits may it bring to your business?

Full Transparency

When picking extended development teams, you can get access to high-level technological expertise in any domain without the grind of non-stop hiring and educating newcomers. On top of that, you carry out project management by yourself (unlike in traditional full-scale outsourcing) and, therefore, obtain total control over the entire development process.

Enhanced Team

In the staff augmentation model, extended team members work side by side with your in-house team, which results in the high level of mutual trust and transparency. While surmounting the same challenge, not only do software developers share responsibility for deliverables, but also educate each other. So, for your team, the ETM becomes a cool chance to level up with minimal trial and error learning.

Saved Resources

Compiling a dedicated team from scratch on a tight deadline sounds like something unattainable, doesn't it? Well, the great news is that with extended teams, everything becomes possible. Staff augmentation is a cost-effective solution that allows both long-established companies and recently evolved startups to fill in skill gaps in no time. So, don't hesitate to give it a try!

No Operational Costs

If you've recently entered the competitive software development market, most likely you don't have much to offer to top-caliber specialists. Additional perks, motivating seminars, the latest equipment — all these bonuses require huge extra costs. Still, if you're not ready for such expenditures, it doesn't mean you can't reap the benefits of the tech talent pool. As you may guess, the dedicated team model gives you this golden opportunity by relieving the burden of such operational costs.

Boosted Time to Market

Another tangible advantage you get when extending your team consists in faster time to market. Since the ETM allows companies to skip the drudgery of recruitment and enhances team productivity, the software launch happens much earlier. Also, when choosing staff augmentation, you get a full-time team 100% dedicated to your project, which also contributes to the delivery speed (unlike in outsourcing, where the hired team may be simultaneously involved in several projects).

Do You Really Need an Extended Development Team?

Although earlier we compared staff augmentation and outsourcing, don't get us wrong — both these operational models are excellent and budget-friendly. The only distinction is that they answer different business needs.

Thus, if you hunt for a dedicated team with a proven track record in the software development domain, ready to accompany your project from start to finish, go for the extended team model. And in this way, in addition to quality service, you'll get your in-house team upskilled.

At the same time, to assemble the team from scratch or to get valuable advice at a certain development stage, try outsourcing. It's another life-saver, and the fact that by 2032, business process outsourcing is predicted to reach $620 billion just proves the efficiency of this model.

How to Get Started?

If staff augmentation is the cooperation model you'd like to try, you should know how to get the most out of this worthwhile journey. So, here are our step-by-step instructions and strategic reminders.

Step #1. Find the Right Partner

Choosing a reliable ETM partner is of paramount importance, so where to find one? If you're new to the game, the best way to do it is to entrust the search to time-tested ratings & reviews platforms, like Clutch.co, CrowdReviews, or GoodFirms.

Step #2. Set Up Onboarding

Yes, the extended team model mostly presupposes remote work, but it doesn't mean you should ignore the onboarding process. Remember, the ETM is about a long-lasting partnership, so your goal is to help remote developers get on the same page with your team ASAP. What's more, don't forget to set up a working environment so that everyone feels a positive vibe and drive.

Step #3. Specify Goals & Needs

When combining the extended and in-house models, building the communication process becomes really challenging. So, here is our last but not least advice — think through the communication channels beforehand and get crystal clear when specifying your business needs and requirements. Also, make sure, both teams understand your tasks and there is no communication silo between the developers.

Winding-Up

Today, the promising software development industry offers multiple opportunities to those who want to stay afloat and evolve. All you need to do is to sort everything out and select a business model in compliance with your needs and resources. We hope after reading this article you've got a clear vision of the desired outcomes for your project. Good luck!

Planning to extend your team? Contact our specialists then. Qulix Systems is a top-rated software development company, ready to address the challenge and help you out.