You often find your business in a situation where you need to work on a large-scale software project but realize there need to be more in-house resources. There are two ways to go about it. You can hire new people in your company or take on board specialists for this project. These options have their own set of benefits and drawbacks, which we will analyze in this blog.
For definition purposes, a dedicated team model refers to having an outsourced team of developers who operate in a way that is similar to an in-house development team. They offer a wide range of services, including app development and maintenance, coding, testing, user interface design, and project management. This model works by partnering up with an agency that recruits individuals in the team for you based on your requirements.
On the other hand, in an extended team model, you hire experts or take on board freelancers who can help fill the gaps in your in-house team. This means you hire new resources to polish the workforce you already have. This implies that they would have to stick to the policies, tools, and methodologies of the company that hires them.
The way to differentiate both models in simple terms would be that a dedicated team model refers to outsourcing work to a third party that finds expertise in the particular task. In contrast, an extended team model focuses on outsourcing work by hiring someone not part of your company to perform in-house functions. If you want to figure out the best option for your company, read ahead.
Benefits of a Dedicated Team
A significant benefit that a dedicated team model provides is cost efficiency. It is less costly to outsource work than to hire an in-house person because the latter would involve hiring costs, training, purchasing equipment, and providing the resource with monthly payments. In this model, you have to pay the team you have outsourced work to until the project is completed. Moreover, you have a vast talent pool because you are not restricted to hiring someone who can visit your office. This allows you to reach out to anyone in the world. So, you can hunt for the best skills at the best price. You will find developer rates highest in North America and Australia, ranging from $70 to $150. This is followed by Western Europe, Eastern Europe, Asia, and Latin America, which have comparable prices ranging from $20 to $ 50.
Another advantage of having a dedicated team is that it will be better suited to meet the needs of your project. This is because the team is built keeping your requirements in mind, so only people with the relevant skills are chosen for the task. This, in turn, also translates into the dedicated team model being more flexible. The team can be scaled according to the project’s stage and needs. For example, if you need a data analyst after the launch of an application, you do not have to hire them from the start. You can take them on board only when their expertise is required.
Drawbacks of a Dedicated Team
The biggest drawback of working with a dedicated team is the need for more communication. Your team is likely based in a different country that does not follow the same time zone as you, so it might be challenging to set up a meeting. Sometimes even the team members are from varying time zones, limiting their communication. Other than that, there is always a problem with cultural fit. Your team might have members from different parts of the world who might not be fluent in English. This might place language barriers.
Benefits of an Extended Team
In an extended team model, your business would have more control over the project since the model acts as an extended version of your in-house team. This gives you more freedom in making decisions and retaining control, which is better because you can ensure the project is according to the client’s demands. Moreover, you are not replacing the in-house team you already have, making the entire process less expensive.
You also have constant support from the team, which provides various software development services at every project stage. Also, the extended team members adapt to make their work ethic more aligned with the company’s vision. They try their best to follow your practices and to blend in so that you can meet your mutual goals.
Cons of Extended Team Model
The biggest drawback of having an extended team on board is that they might need help to adjust to how your company works. It will be challenging for them to integrate themselves into your system and way of working. Since they might have to change this, it might cause delays as they try to adjust. Secondly, sometimes the coordination problem between your team and the extended team might arise. This is likely to happen if you take up an extended team in the middle of the project. Since both teams will be at different paces, getting them to work effectively might be a problem.
To conclude, no fixed team will best serve the needs of your business. You have to see the structure of your company and weigh out the pros and cons to get an idea of what would work better for you. Generally, businesses are more inclined to hire a dedicated team for complex apps that are long-term projects. Other than that, early-stage startups and projects that do not have very specific requirements are more towards the dedicated team model. You use an extended team model when your in-house team lacks the required expertise for a project or when there are other urgent tasks that your core team needs to attend to.
Try to see which model is more in line with your company’s priorities. For example, if maintaining control is important, then the dedicated team model might not work for you. If cost is a main focus, then you might be indifferent towards both options.