In the years ahead, IT expenditures worldwide will increase by five percent compounded yearly. This indicates the incredible expansion and request within this sector.
With rapid development, there are always more challenges for businesses. Sooner or later all companies face the need to increase their software development team or take a risk and turn to the services of third parties.
In case your current development capacity isn’t sufficient to scale fast, this guide is right here for you! Now let’s dive into the common effective methods for growing the software team.
Basics & Benefits
It is noteworthly that Extended Team Model (ETM) or Team Extension Model (TEM) entails more than just taking on short-term projects.
It involves building enduring partnerships and fostering collaboration between your in-house technicians and the offshore development company’s contracted specialists.
By keeping core competencies such as motivation, ethics, management style, and responsibility in the company, you can use the experience of an extended development team with a common goal.
Direct communication and control over both teams are maintained for a synergistic effect in development. This will help to fill technical gaps or strengthen your market position.
6 Ways To Crafting An Ideal ETM For Your Business
To achieve a smooth integration of an extended team, it is essential to employ deliberate tactics that prioritize communication and adaptability.
One crucial aspect for a company to keep in mind while expanding its team is to ensure that they select a partner who comprehends its goals, business, and distinctive needs.
Here we’ve compiled the finest extension options for your ease.
1.) Dedicated Development Team
The operating principle of this option involves managing and overseeing an entire team or department, rather than just a handful of individual employees.
Such a team is responsible for specific aspects of a project. This approach is akin to outstaffing and offers similar benefits, such as delegating issues related to taxes, team composition, and qualifications.
Outsourcing is a common practice of transferring business processes to third-party suppliers.
In terms of statistics, according to a study conducted by Deloitte in 2022, 60% of companies choose to outsource purely to reduce costs.
The majority of the respondents believed their businesses would gain a fresh look and new opportunities this way.
As a result, resources are freed up for key areas. This makes it possible to implement innovations, find a competent approach and solve other significant tasks.
While the benefits of this format are apparent, some companies may be hesitant to adopt it due to the complex management processes and communication challenges that come with a lack of control.
The essential difference between the outstaffing and the previous model is that the responsibility for the successful completion of the project rests with the client company itself since the assignment of tasks to the hired team of specialists is performed by the client.
In addition to cost-cutting and downsizing of full-time staff, the transfer of auxiliary tasks to specialized ready-made professionals enhances service quality and brings added benefits to your business.
4.) In-house Hiring
Expanding a team involves incorporating new members into an established team to enhance its size and capabilities.
The aim is to offer additional assistance while maintaining the original team’s momentum and efficiency.
However, if you’re considering a significant team expansion, you should be prepared for the possibility of a substantial in-house hiring budget.
This is particularly true when seeking exceptional talent, which is often in high demand and may come at a premium, making it challenging for small businesses and startups to afford.
When it’s too costly or impractical to form a team from scratch, freelance developers can always be utilized for their services.
Despite the challenges of data leakage, communication complexity, and low engagement, this way is relatively cost-effective.
6.) R&D center
For those requiring a team larger than 40 people, this option is ideal. By partially moving operations offshore, a research center can be established with a low budget.
It’s advisable to set it up locally as there will be legal, tax, and management concerns to address. Nevertheless, this approach enables us to leverage exceptional personnel with diverse experience.
H2: Selecting a model appears to be a decisive and critical stage, but the true difficulties emerge when you’ve already extended the software development team.
Establishing a process for continuous development, motivation, and enhancement becomes necessary. As the scale increases, so does the responsibility.
Don’t hesitate to alter the approach or model because the ultimate formula for perfect collaboration lies in experimentation and the right mix.
So why should a business extend a software development team? There is no single correct answer to this question.
Be careful with scaling and do it only when truly necessary! Whether you choose to outsource or establish an in-house team, either option can be pertinent as long as you’ve identified the company’s requirements.
We recommend using three evaluation criteria, namely cost, expertise, and flexibility, to help guide your decision.
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