Man is jumping out of nutshell to show his excitement about inviting extended software development team.

Oct 11, 2023

12 min

All about an Extended Software and Tech Development Team but in a Nutshell

The concept of an extended software development team isn't new, and so is the concept of outsourcing in general, of course. The idea of hiring someone else to do your work (sounds like a bliss to us, wink-wink) has gotten so popular that the revenue from outsourcing software development is projected to hit $122.7 billion by the close of 2023. If it weren't effective, it wouldn't be making that kind of money, right?

If outsourcing is something you're willing to try, there are a lot of models to choose from. However, in this article, like we've hinted above, we will focus on extended software development teams. A detailed answer to your question “why?” awaits you one tiny page scroll later.

written by:

Alexander Arabey

Director of Business Development

Extended Software Development Team: What Is It, and When Do I Need One?

An extended team model (or staff augmentation) is an outsourcing type where highly experienced software developers from a third-party tech vendor quite literally extend your team by joining the in-house crew. It's good to keep in mind that these tech specialists neither replace the ones you have, nor are they responsible for — roughly speaking — making sure your project will work. A product roadmap, the definition of core and additional features — none of this is an extended team's job. You pay these talents to board the ship you already have, rather than to tell you how to build a new one.

From a client's perspective, this is perfect. A common fear associated with outsourcing is losing control over a project. With an extended software development team, this can never happen: the client has all the power, since project management is the client's job. Their side (a project manager or other in-house developers) assigns tasks, accepts reporting from outsourcing teams, and sets deadlines.

We bet you're already curious if this outsourcing model is the right fit for you. Here's a checklist to make sure it will compliment your business rather than drown it in panic and disarray:

  1. Niche expertise. Your in-house team is wonderful, but you're about to conquer an unknown realm, work on a brand-new project, or you are launching a startup. Your need to close a specific skill gap is a sign to give an outsourcing company (maybe us?) a call. In other words, if your team members lack specialized expertise, ask someone who does and work wonders.
  2. Limited budget. If you need more hands and need 'em fast, the best route is to invite a small external team to join yours. This is due to the fact that it is too much trouble — both time- and cost-wise — to increase your own crew. In-house hiring, onboarding, licensed software, exponentially growing utility bills — you get the idea. An extended team will let you tap into a worldwide talent pool of specialists with very nice hourly rates, while preserving full control over your project.
  3. Temporary project. Sometimes the workload is too high, yet the most demanding projects still have to stay at the top of the priorities list. To help your in-house team to focus on what matters the most, ask an extended development team to take on something temporary, especially if that project does not overlap the core competencies of an existing team.

Chipmunk points at extended team use cases.

You may wonder, “Okay, at least one of those reasons suits me, but what if I have long-term projects only? Perhaps, extended team members are a good fit just for short-term work?” We gotta be honest with you: the jury have not reached a unanimous verdict on this one. For some, short-term projects entail a month of work, while for others they imply at least a year-long timeframe. Whether to opt for the extended team model or not depends on your specific situation. If you recognize the need to pump up your team with outside experts, have a consultation with a company of your choice to see what they offer. As for us, we prefer to put our eggs in the long-term basket, i.e., our developers are for hire if the project in question is going to last at least a year.

*For more details on our collaboration models and offers, check out this page.

Extended Software Development Teams VS. Dedicated Development Teams

We've briefly mentioned that there are plenty of outsourcing options. Among them, a dedicated development team model stands out, as it prompts not only developers, but also project managers, business analysts, and other professionals to come to your aid, whatever that is. Unlike traditional outsourcers, such teams have a rich, but very specific expertise as they focus on a limited number of domains. Their niche skills pave the way to the increased quality of the final product and the reduction of time-to-market.

To give you a summary and a better understanding of an extended team's distinguishable characteristics, we've decided to compare it with a worthy opponent that the dedicated development team model represents.

Extended Software Development Teams

Dedicated Software Development Teams

Client’s in control

Vendor's in control

Discovery, development strategy, etc. are client's job

Responsible for end-to-end product development

Extended team joins existing team

Consists entirely of outsourced specialists

Full transparency: client communicates with extended development teams directly

Lack of transparency: client mostly learns about the extended teams' work progress from project managers

Client hand-picks new team members

Vendor manages the composition of dedicated teams

Benefits of Hiring an Extended Software Development Team

Spoiler alert: an extended development team brings a lot of more benefits than drawbacks. So sit back and imagine what work would feel like if you were to invite an extended team to rock your software house.

Full Control and High Reliability

You — the client — remain at the steering wheel. Not only do you interview and signal a green light to candidates that match your project requirements, but you also decide who does what and when that should happen. There will be no second-guessing of where the project is heading, or whether the reports you receive reflect the actual state of affairs. This transparency allows you to plan your future moves accordingly and set clearer goals.

Access to the Global Talent Pool

In most cases, the hiring process is tricky. If you are forced to accept CVs only from those who live in the same area or country as you do, it's even worse. This is particularly true when you need that specific hands-on experience in a complex domain, like fintech. Say, there are no local developers that know how to implement payment gateways properly. Then what?

The worldwide talent pool erases that issue from your thesaurus of probable trouble. You can find just the person you need on the other side of the world and onboard them ASAP. In terms of talent, there is no “an extended development team vs. an in-house team” situation. It's a clear win for the former.

Speedy Scalability

If you're facing a big project and want to get the ball rolling fast, you need more human resource. Like we've mentioned, growing the team via hiring in-house specialists is a lingering and expensive task. As a LinkedIn report states, it takes 49 days on average to hire an engineer.

Now, we do not claim that it will take about an hour or so to assemble a brilliant extended development team. But a decent timeframe of 30 days (a figure that comes from our experience) is much better than almost 50. The majority of that time is dedicated to negotiating a contract. The faster you deal with that, the faster newcomers will join your in-house team, showing you a much smoother road to business expansion.

Cost-Effectiveness

You've heard this so many times it is boring, but financial literacy will never go out of fashion. Not only do outsourced teams charge less than local specialists, but with them, you also get to keep overhead costs down. What is more, depending on your needs, you can pay your extended team on an hourly or contract basis.

In-House Team Levels Up

One of the major advantages of opting for the extended team model is keeping your core team on the project, too. The need to collaborate with new employees will boost the team's capabilities in the realm of soft skills, such as adaptability, problem-solving, creativity, and interpersonal skills. The same goes for hard skills of your crew: during a joint software development process, your IT professionals will exchange knowledge with highly experienced professionals, thus expanding their expertise, as well as gaining more confidence in their work.

One chipmunk mentoring another chipmunk behind computer.

Long-Lasting Professional Relationship

Some companies are in it just for one project, which can take years to complete. But there are lots of other cases where the last page of one product's history doesn't entail you saying farewell to its author. If you found developers that are right for both your business and your team, that means you have got yourself the developers. If you need any services in the future, there will already be a dream team waiting for your call — the team you know and have a signed contract with.

Decreased Time-to-Market and Meeting Deadlines

Professionals know what they do, since they became ones by using their skills over and over again. Consequently, an extended development team allows your project ship to successfully avoid icebergs: these guys know where frozen monsters can be hiding, so they are aware of alternate routes. The experience of such software engineers also helps them progress in their tasks faster, which results in a shortened time-to-market and hitting deadlines when expected.

Astonishing Final Result

Project success depends heavily on the readiness of all parties to really work together towards a common goal. Thus, to generate a single great outcome, both teams will have to develop mutual responsibility for the final result and bond in the process. Growing professionalism and barrier-free communication (there are no intermediaries in the extended development team model, remember?) will make it easy for everyone to resolve any arising issues quickly. With everyone bringing the best bits of their personal experience to the table, a quality product will not keep you waiting.

What about Drawbacks?

Actually, there are just three of them:

  1. Time zone issues. Two-three hours of time difference are okay. Five and more are highly uncomfortable and counter-productive. After all, the reason to seek software team extension is to increase the quality and speed of processes. A severe time difference will only slow things down.
  2. Culture and/or language barriers. The global talent pool is an amazing place, but you have to make sure that the people you interview are on the same page with you mentality-wise. If you expect to see a certain work ethic, it's best to hire professionals from countries that are known for delivering exactly that.
  3. Short-term projects. A year-long partnership is something that many companies will gladly agree to. If you assume that your project is going to last more, that's even better, since it means acquiring a source of steady income. But if you want to invite third-party specialists just for a couple of months, you will not find yourself in a good position: handling the interviews, discussing the contract, onboarding new people — all these things require immense effort. The value of short-term projects doesn't match it.

How Do I Go about Hiring an Extended Tech Development Team?

If you are serious about team extension and want to get started with project outsourcing, here is a step-by-step guide for you.

  1. Identify the specialists you require. Analyze your business needs, goals, and the current state of affairs in your in-house crew. Which skills are in short supply in-house? What are the tech requirements of your project-to-be? And, most importantly, what is your budget? Also, to avoid any confusion and misunderstandings, make sure your internal team understands the reasons of why you are inviting new specialists.
  2. Select a partner for the future collaboration. GoodFirms, IT Firms, and Clutch are the best platforms to look for a reliable tech vendor. You can see companies' portfolios there, check out client reviews, browse your options by country and domain, and much more.
  3. Find the best people for the job. After you've had a meeting with an IT outsourcer where they clarified your business requirements, longevity of the project, rates, and so on, they will offer you pre-selected candidates to choose from. Tech vendors make those lists based on who can match your expectations better and has the skills to deliver everything you have in mind.
  4. Conduct onboarding. After the contract has been signed, your extended development team can finally meet your employees. Start with introducing new specialists to the team, identify the communication tools (Slack by far is the best out there) and management tools (like Jira) everyone will be using. A brief overview of your company culture and history is also part of the process, just like it is when hiring in-house professionals.
  5. Set clear goals. Talk through everyone's role in the project, reporting, tasks, KPIs, and deadlines. And when we say everyone, we mean both the internal team and invited specialists. Your project crew has to acquire a very precise understanding of what they are doing, and why.
  6. Start development. Well, the only thing that's left now is to build that product of yours! Monitor progress and address any arising issues right away.

Chipmunk shows steps to follow to hire extended team.

Let an Extended Team Extend the Range of Your Possibilities

If you are open to the idea of outsourcing in general, but the fear of losing control over your project has kept you from doing it, we encourage you to give the extended development team model a go. It is the perfect option for those who want to handle project management themselves yet need a special skill set that an internal team does not possess. And the best part? You can hire as many people as you like, craft a contract that works for your benefit, and enjoy a free trial period that most companies offer! Doesn't that sounds marvelous?

If that does indeed sound appealing to you, and you want to hear more on the topic, contact us! We will be glad to have a chat with you and answer any questions. We perform a wide range of services, starting from mobileweb, and cloud development to business intelligence consulting and legacy software modernization.

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Valuable Insights

What does a software development team do?

This team brings all features defined by business analysts to life. Developers oversee all technical aspects of the project, construct a user interface, originally crafted by a designer, and make sure that the front end integrates properly with the back end.

What is an in-house development team?

An in-house team of software developers is a group of professionals hired into the company's staff. They receive their tasks, salary, benefits, as well as hardware and software required to perform their job from their direct employer.

What is the role of an extended team?

The extended development team model implies that external developers join an in-house team to fill the skill gap, complete a temporary project, or help a company save financial resources. All in all, such extended teams work on custom software development projects with a need for professionals that possess a top-notch expertise and the ability to work well and fast.

What is an extended development environment?

That is a workspace where extended teams perform tasks assigned to them by a project manager from the client's side.

What is the extension of a management team?

That is the process of hiring outsourced professionals with a specialized knowledge to join your core team. This decision results in a quality product that hits the market much quicker than it would otherwise.

What is the structure of a developer team?

Software development teams normally consist of a business analyst, a product owner, a project manager, a product designer, a software architect, software developers, testers, and a DevOps engineer.

What is a development team in Agile?

As the source writes, “An Agile Team is a cross-functional group of typically ten or fewer individuals with all the skills necessary to define, build, test, and deliver value to their customer.” A development team in Agile focuses on building digitally-enabled solutions, while delivering results in small increments. This helps gather feedback and, consequently, efficiently improve the product.

What is the difference between an extended team and outsourcing?

An extended team model implies that the people you're about to invite to work on your project have a niche expertise that can close the skill gap your internal team is experiencing. What is more, such specialists will dedicate all their time solely to your project, while you will get to fully handle project management and gain high visibility into all occurring processes.

Unlike the team extension model, traditional outsourcing often lacks transparency, as full control over a project is concentrated in the hands of a tech vendor. Their expertise and skills are also not as rich as what extended teams provide.

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