2022-05-207 min read
Companies often refer to outsourcing in order to deal with business challenges, such as skill gaps, costly development, and maintenance burden. According to the Deloitte 2021 Global Shared Services and Outsourcing Survey, 88% of companies decide to outsource to perceive cost reduction, 78% – standardization and process efficiency, and 63% – business value.
Outsourcing, in general, does not solve all of these problems simultaneously. It comes with several service models that have necessary capacity to address different needs. The two most popular outsourcing models – a dedicated team and team extension – vary in problems they solve, resources they draw, the nature of cooperation, and price.
Yet, a decision about whether to go with a dedicated team or to hire some developers from your outsourcing vendor’s side should not be made solely based on the cheapest paycheck. Your service model should be in line with your needs. Otherwise, you run the risk of paying twice: first, for the option you thought was the right one for you and then for the one that actually was.
This is why we are going to discuss today the differences between a dedicated team and a team extension outsourcing model and how to choose the one that works best for you!
Team extension is an outsourcing service model in which your in-house team is enlarged by specialists hired from your outsourcing provider. Assume that you need just two QA engineers with expertise in automation. And let’s say you can’t find them in your city – either they don’t have the relevant experience or their salary is beyond your budget. Using the team extension model, you can hire these QA engineers no matter where they are located and for a price you are comfortable with.
You will be able to acquire missing skills and expertise from the best engineers while simultaneously maintaining your core competencies and core team. Vendors will invoice you for only the time developers spent working and the materials they used to do so.
Also, you will be able to save costs on the administrative support of your newly hired staff. Your outsourcing vendor will provide your extended team with:
– Office space (along with all utility services)
– Laptop and other equipment
– HR activities
– Recruitment
– Legal and accounting support
– People retention and motivation
– Conflict resolution
– Training and career development
– Team building activities
– Perks and benefits
However, there will be other responsibilities that will be on your side – and they are even more significant ones and are even more relevant to the project’s success:
– Project and team management
– Task assignment and distribution
– Onboarding
– Performance monitoring
– Knowledge sharing
– Deadlines monitoring
– Code reviews
– Requirements explaining
Using the team extension model, you will have complete control over the whole development process. Your vendor will only support your specialists administratively to ensure they feel comfortable working for you
Engineers from your outsourcing partner will work full-time or part-time as part of your core team – managed by you (or your project managers) but working from your vendor’s premises. Such a service model has its ups and downs you need to consider when choosing it.
Advantages of Team Extension Model:
– Full control over your development team and resources
– Great flexibility, as you can hire more specialists from your outsourcing partner or any other vendor
– Easier bridging of skill gap and access to the worldwide talent pool
– No need to administratively support new members
– No need for additional physical space in your office
Disadvantages of Team Extension Model:
– Development and domain experience from your side required
– Management resources required from your side
– Harder to integrate your extended team with your corporate values since they are not physically present in your office
– Language barrier & Hour differences
The dedicated team is an outsourcing service model that entails not just hiring specialists with specific experience but the whole team as a closely-working unit. Each team member will have the same complex task for your project – for instance, the development of a new feature, legacy modernization, maintenance, you name it!
But they will address these tasks each from their point of expertise (e.g., the feature needs to be designed, developed, and tested). Basically, you hire a +1 team to work not as a part of but in parallel with your in-house or other outsourcing teams. That’s why the dedicated team model entails hiring not only developers but also QA engineers, business analysts, project managers, and designers. Basically, the model can look like that:
A dedicated team entails more responsibility from your vendor’s side than team extension. It includes all responsibilities from the extended team model and adds on:
– Team management
– Code reviews
– Performance monitoring
– Task assignment and deadlines monitoring
You, as a client, will still have responsibilities but fewer and more fundamental ones:
– Knowledge sharing
– Team onboarding
– Project management (large tasks distributed amongst teams)
– Team management (partly)
– Requirements explaining
As a part of the dedicated team model, you delegate more responsibilities to your vendor and can focus more on business-specific aims and objectives.
Specialists hired as a part dedicated team model will work together as a fully-operating unit. They address the same general challenge, but each from the perspective of their own expertise. Generally, this service model is more universal since it does not require as much technical and managerial dependency on your side. However, it still has its ups and downs:
Advantages of Dedicated Team Model:
– Less managerial and technical resources are required from your side
– Better autonomy of your outsourced team
– More time for you to focus on business-related tasks
– Less team dependency on your input
– Shared responsibility
– Less influence of language barrier and hour difference since the whole team works together from your vendor’s premises
– 100% team engagement
Disadvantages of Dedicated Team Model:
– Less control over day-to-day tasks
– Longer time required to hire all team members
– Only fits long-term projects
– Higher costs than with an extended team
A dedicated team reduces your responsibility for the part of the project you delegate to the outsourcing team. It gives you more time to address other non-technical objectives. However, you will have to build more trust with your vendor in order for this model to work. You will need to provide your dedicated team with all relevant knowledge so that they can work on your project. That’s why it is essential to foster a partnership with your vendor. This way, you will enjoy the benefits of a dedicated team model and reduce disadvantages since there is trust between you and your vendor.
To choose the service model that works best for you, answer yes or no questions.
If you answered yes to all of these questions, an extended team might fit your project.
If you answered yes to the above bulk of questions, a dedicated team could be the right fit.
Of course, the choice is not carved in stone. Your project changes – it grows, extends, reduces, or transforms. You can always go from one service model to another, and:
– scale extended team to become a dedicated one, or
– reduce dedicated team and leave several people to add to your in-house one
What matters is asking your vendor for transparency and responsibility so that you get all benefits from the service models of your choice – not less. Do you want to talk about your project and see what we can offer you? Contact us!
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Have you ever tried to open any web-site on your phone’s browser? If you have, you’ve probably noticed how clumsy it can be. Yeah, opening and utilising a web-site on a PC with a big screen is pretty convenient, however doing the same on smartphones, especially older models with screens smaller than 4 inches is less satisfying. The text is really badly read and the buttons are small, ads may cover too much of your humble space.In order to cope with these and other issues at the dawn of the smartphone age PWA technology was developed.
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When you begin to work on a new (especially large-scale) project, organizational moments themselves look quite intimidating. Despite all the possible challenges, take a deep breath, count 1,2,3 and think carefully about the particular task the team is supposed to solve and what’s the team role within the project frames? Clear targeting and coming up with first juicy ideas will set you a decent start on the way to forming a successful development team.
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The e-commerce development company you choose will certainly affect the money you have to pay.The e-commerce website can definitely enhance the profit you receive from your business. But how much does e-commerce website cost? The figures you will hear in an answer to that question can vary a lot. Even after development, you will have to invest money into maintenance, improvement and adding brand-new features that are constantly appearing on the market. That’s in case you want your e-store to be attractive and profitable, of course. It’s even difficult to tell the average cost of how much should I charge for an e-commerce website. The numbers will vary due to different factors. In this article, we’re going to discuss them all in detail to help you grasp some idea about the money you need to pay for the e-store. First of all, you need to decide what you want your e-commerce to offer the customers. It may be anything from small business e-store up to a large website with a big amount of integrated (useful or just good-looking) features. It is also a good idea not to wait until everything becomes outdated. We strongly recommend to update all the features continuously and save money for more innovations.
To avoid the negative consequences, start with determining what you intend to achieve.The popularity of e-commerce is growing at a blistering pace. Many companies around the globe regard the internet as a powerhouse with high commercial capacity and opportunities to boost their business and attract more customers. Those companies are completely right – more and more people prefer clicking the mouse over walking for hours when they need to buy something. Online stores nowadays provide their customers with more possibilities for less effort. But how to make people buy on your website, not any other? The answer is in thorough planning and management of e-commerce.
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We don’t say there isn’t enough knowledge, because our specialists are always broadening their abilities, delivering first-rate products and making the customers satisfied.Being a client of a Web Development company doesn’t mean you have to know all the ins and outs of the development process. However, what may be interesting for you is the stages and main characters of the project delivery. You cannot address front-end developer directly if you need to add a new payment method. Even this, as you may think, simple task involves a well-thought teamwork. So, here is a brief insight into the mechanism of SapientPro Clockwork.
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If a customer wants to find a development company they can work comfortably with, the staff becomes a really important point to encounter for making a choice.Without any doubt, while visiting some websites, buying goods online or even using a digital map to reach your destination you don’t think of the fact that Ukrainian IT specialists might have taken part in the development of these apps. A great number of companies around the world choose to outsource web development to Ukraine and they do have strong reasons for that. So, let’s give a detailed look at the biggest of them:
As software development is a many-stage process, every its element contributes to what you have to pay for an application.Before starting something new, people usually ask: “How much will it cost me to do this?” If you expect to hear the exact sum once you come to the software development company, here is something you need to know. The factors to be considered for the cost estimation are numerous and most of them depend on how you want your website or app to look like.As software development is a many-stage process, every its element contributes to what you have to pay for an application. Let’s have a closer look at three most important factors that affect the client’s budget.
