Dedicated Team vs Extended Team: Choosing the Right Model for Your Project

In today's dynamic business landscape, choosing the right team model for your project can be the difference between success and stagnation. When businesses consider developing an IT project, they often encounter two delivery models for building effective software development teams: the Dedicated Team and the Extended Team approach.

Understanding the differences between these models can help you make an informed choice that aligns with your business needs, budget, and project goals, so let’s delve deeper into the subject in this article.

One IT Service, Two Delivery Models: Understanding Team-as-a-Service

Team-as-a-Service (TaaS) is a flexible outsourcing model that provides businesses with on-demand access to specialized talent and expertise, allowing them to scale their project teams as needed. This model helps organizations avoid the overhead costs of permanent hires by enabling them to bring in skilled professionals temporarily.

TaaS model is highly adaptable, supporting both short-term needs and long-term projects by offering two possible partnership models: depending on your specific needs, you can either opt for a fully dedicated team or a collaborative extended team that integrates with your existing team.

What is a Dedicated Team?

A Dedicated Team model involves hiring a group of professionals who work exclusively on a specific project or set of projects for an extended period. Unlike other team models, a Dedicated Team operates independently from the client’s in-house teams, allowing it to focus entirely on the client’s project goals and objectives.

Dedicated teams are particularly advantageous for long-term projects where in-depth knowledge of the project is essential. By providing full-time commitment and adaptability, this model offers a high level of control, scalability, and expertise, ensuring a close alignment with the client’s vision.

Benefits of the Dedicated Team Model

- High Level of Control: Since the team is fully committed to your project, you have direct control over each aspect of development and can work closely with team members.

- Deep Project Understanding: A dedicated team becomes highly familiar with the intricacies of your project, leading to a deep understanding of your goals and values.

- Scalability: Dedicated teams can be scaled up or down depending on the project's evolving needs, offering flexibility without compromising the project's continuity.

What is an Extended Team?

An Extended Team model enhances your existing in-house team with additional, specialized talent from an external provider. Unlike a standalone outsourced team, an Extended Team integrates closely with the client’s internal team, collaborating in real-time and aligning with the company's goals, processes, and culture.

This model allows businesses to access specialized skills, scale up resources flexibly, and control costs, making it ideal for projects that need additional support but do not require full-time employees.

Benefits of the Extended Team Model

- Flexibility and Cost-Effectiveness: The extended team model allows businesses to add specialized skills only when necessary, making it a cost-effective choice.

- Access to Skilled Professionals: Companies can bring in experts with the exact skills needed for specific project phases without the overhead of hiring permanent employees.

- Seamless Integration: Extended teams integrate well with existing teams, allowing for collaboration without disrupting current workflows.

Dedicated Team vs Extended Team: What Are the Key Differences?

While both models offer access to skilled talent and can be cost-effective, the key differences lie in their structure, level of commitment, and management.

Commitment

A Dedicated Team is fully committed to one client and project, making it a better option if you’re looking for a full-time, long-term commitment to work on a complex project.

On the other hand, an Extended Team may work across multiple projects or clients, making it ideal for short-term or specific needs, such as expertise in a particular technology or support during peak workload periods.

Team Integration

The Dedicated Team works independently on the project, developing an in-depth understanding of the client’s project over time and gaining familiarity with its goals, challenges, and technical stack.

The Extended Team works alongside the client’s in-house team – they are more of an “extension” than a fully invested unit. This model can be ideal for projects that don’t require extensive onboarding or long-term investment in project knowledge.

Control

With a Dedicated Team, the client has a high degree of control over team management and project processes. This hands-on approach suits clients who want an outsourced team that operates almost like an in-house department.

An Extended Team shares responsibility with the client’s existing team. This model works best for clients needing supplemental expertise while maintaining primary control within their in-house team.

Cost-effectiveness

A Dedicated Team generally have a higher cost due to the full-time commitment and focused involvement. They are also typically longer-term investments, making them ideal for businesses that need consistent support for complex, ongoing projects.

In turn, an Extended Team are more cost-effective for businesses with fluctuating needs, as they allow companies to “extend” their in-house resources temporarily. This model provides flexibility in scaling the team size up or down, depending on project demands, without long-term financial commitments.

Which Model Should You Choose?

Selecting between a Dedicated Team and an Extended Team ultimately depends

on several factors, including project duration, requirements, goals, budget, and your team’s existing capabilities.

For instance, if your project is extensive, requiring focused attention and in-depth understanding, and can allocate a higher budget, a Dedicated Team might be a better fit. On the other hand, if your project requires specific skills for a defined period, an Extended Team could offer the ideal mix of flexibility, cost-effectiveness, and expertise.

Both IT delivery models offer unique advantages that can drive efficiency, innovation, and cost savings, ensuring your IT projects are handled by a capable, tailored team.

If you are looking for the best approach for your business, get in touch with Smart Consulting! With experience in providing a wide range of IT services, we can help you find the right solution for your project.