What is an Extended Development Team? A Complete Guide

Around 79% of companies are outsourcing app/software development as per recent studies. This shows that finding skilled software developers is indeed a task whereas finding the right talent at the right time is a herculean task! Moreover, outsourcing is a relatively cost-effective solution as compared to hiring an in-house team of engineers. That is why companies have shifted to extended development team models and have recorded a 60-70% reduction in web development costs solely by outsourcing (Source: Medium).

Now, whether your needs include a team for a short-term project, if you are looking for an economical team of developers or if there is an intermittent need for specific skills and your team is slammed with other projects while new ones pile up then you should invest in an extended development team.

Throughout this blog, we’ll explore how an extended development team can turn the tide for businesses facing the challenge of hiring and retaining top-tier software talent. We’ll uncover practical strategies to maximize the potential of this collaborative model.

Let us first familiarize ourselves with this extended development team model.

What is an Extended Development Team?

An extended development team also referred to as staff augmentation is generally used by software development companies who are looking to scale their teams or products. It is a group of software developers and remote specialists from an IT outsourcing company who work together with the in-house team of engineers on an ongoing project or help build a new specialty product.

This extended team only supplements the main team. This means that you are paying for the talent alone and not the entire product development. Remote developers or hired teams handle the tasks that are assigned to them and report to the in-house project managers or responsible managers. This arrangement allows companies to access specialized talents, scale their workforce as needed, and manage project timelines effectively without the commitment and overhead costs of hiring full-time employees.

Having understood the model, it is now time to look into the details of working with an extended development team.

How Does An Extended Development Team Work?

Given below is a step-by-step guide to help you understand the hiring and working of an extended development team.

1. Pre-planning

Begin by assessing the project’s scope, technical requirements, and the specific skills needed to complement the existing team. Conduct a detailed analysis to identify any skill gaps that require external expertise. Allocate a budget and resources for hiring, considering the cost-effectiveness of external resources versus permanent hires.

Select reputable software development companies or freelancers based on their expertise and industry experience. Establish clear contracts outlining project scope, deliverables, timelines, and legal considerations. Develop an onboarding plan to integrate the extended team seamlessly into the company’s culture and workflow. Finally, define communication channels, assign a project manager for oversight, and establish performance metrics to monitor and evaluate the team’s contributions effectively.

2. Search for a Tech Partner

The quality and cost of the products are highly affected by this step. When looking for a tech partner to augment your development team, start by researching and evaluating potential Tech Companies or freelancers based on their reputation, portfolio, and expertise in your required technologies. Seek recommendations, read reviews, and consider past client testimonials to gauge reliability and performance.

Here are some popular platforms to find out teams and reviews about them:

Clutch – Clutch is a platform that provides reviews and ratings for B2B service providers, including software development firms, marketing agencies, and IT consultants. It helps businesses make informed decisions by offering verified client feedback, company profiles, and industry insights. Companies use Clutch to find reputable service providers based on performance, customer satisfaction, and expertise in specific domains.

GoodFirms – It’s a reputable research and review platform that assesses and lists IT service providers based on client reviews, industry recognition, and service offerings. It creates statistical reports across various categories and industries.

3. Assembling a Team

After contacting the Company, your business analysts will set up an online meeting with them to discuss the technical aspects of the project. The primary aim is to understand the spirit of the team because it is important to allocate a team that is technically, mentally and emotionally complementing your in-house team.

Once the sample of your extended development team is ready, managers would review their CVs to understand their experience, previous projects and their roles in the projects. They then conduct technical interviews to discuss project specifics, clarify expectations, and assess their communication skills and cultural fit with your team.

Once you have finalized your team, negotiate terms and conditions, including project scope, timelines, pricing structures, and intellectual property rights, to ensure alignment with your business objectives and sign a contract with the company. Regularly communicate and maintain transparency throughout the partnership to foster a collaborative and productive working relationship.

4. Team Onboarding

After the team’s approval, you require a communication bridge between the extended team and your team. For smooth integration of new members into your existing workflow, you need to provide access to essential tools and platforms such as:

• Project management software (e.g., JIRA, Asana, Microsoft Projects, Trello, Confluence)
• Communication tools (e.g., Slack, Microsoft Teams, Skype for Business, Amazon Chime)
• Version control systems (e.g., Git, Subversion, Mercurial, Perforce)

This helps them track their tasks, log the time spent on the task and be updated on the progress of the entire team.

5. Defining Clear Goals

Once your team is ready to work, you need to set clear project requirements. Establish responsibilities, deliverables, and milestones to each member of the team. This clears any confusion among the team members and also helps the product reach completion within the deadline.

You can also include key performance indicators (KPIs). Clear performance indicators would help the members understand their roles and contributions to the project and would provide insight if the development approach needs any change.

6. Beginning The Work

When the team is assembled and the responsibilities are discussed, you are all set to begin the work. Hereon, the major task is to monitor the progress of the team, manage them and address their issues during the project. Incorporate feedback from internal stakeholders and collaborate with the core team on quality testing and performance optimization.

Key Benefits of an Extended Development Team

If you are planning on hiring an extended development team for your next project, then you need to go over the benefits it offers in a software development process.

1. Cost-Effectiveness

A major benefit without any doubt is cost savings. By engaging external specialists such as an extended development team on a project basis, companies avoid the overhead costs associated with full-time employees, such as salaries, benefits, and training. This model allows for flexible budget allocation, adjusting resources as project demands fluctuate.

Recruitment and onboarding expenses are minimized since external team members typically come with established skills and experience. Additionally, companies can scale their workforce economically, cashing in on global talent pools and choosing providers based on cost-effectiveness without compromising project quality.

2. Flexibility

Having both an in-house team and an offshore team(extended team) benefits the project by providing agility and flexibility. The offshore team can adjust its size based on business needs, which helps manage costs effectively. Moreover, offshore developers often bring specialized skills and niche expertise that complement the in-house team’s capabilities.

This setup allows businesses to scale resources up or down as required, benefiting from a diverse talent pool while optimizing project outcomes and responsiveness to market demands—a win-win situation for efficiency and skill diversity.

3. High Commitment

When you hire a dedicated extended team to support your in-house group, you benefit from their full focus on your project. They are dedicated to your company’s goals, ensuring minimal delays and consistent effort in delivering results.

Working closely with your core staff, the offshore team maintains clear communication, transparency in their work, and shares accountability for project milestones. This collaborative approach boosts overall productivity.

4. Easy Management

Hiring an extended development team is beneficial as the management becomes streamlined because you oversee them directly, unlike in other outsourcing models where a project manager is appointed by a vendor who keeps in touch with you throughout the project.

This direct management approach allows you to assign tasks personally using project management tools, ensuring clear communication, real-time updates, and immediate feedback. You maintain direct control over project timelines, priorities, and resource allocation, encouraging a collaborative environment where issues can be addressed promptly and adjustments made swiftly as needed.

5. Scalability

You can benefit by hiring an extended development team as it gradually ensures optimal resource utilization and budget management. By starting small and expanding as needed, you can carefully monitor team productivity and project outcomes, adjusting resources in line with business growth.

This scalable approach minimizes risks and operational disruptions, allowing for hassle-free adaptation to changing project requirements and market conditions. Start small, see how it goes and hire more if there is a need.

Build Your Extended Development Team With Zealous

From augmenting in-house capabilities to accelerating project timelines, an extended team optimizes resource utilization and fosters innovation through collaboration across borders. With a wide choice of dedicated engineers and expertise, we at Zealous System can help you assemble an efficient and flexible extended team. We have a proven track record of success in helping businesses of all sizes scale their operations with offshore software development.

We also offer a wide range of software development services across a diverse array of industries, quality assurance, and training, to ensure that your project is delivered on time and within budget. We provide different flexible models to help build your dedicated team so that you can choose according to your requirements.

With 12+ years of experience and 500+ happy clients, we can promise complete confidentiality and shared accountability because we believe that trust facilitates faster problem-solving. To witness the power of collaboration, contact us and unlock the full potential of your projects with our tailored solutions.