Understanding Team Models in Software Development

Software development projects come in all shapes and sizes, and so do the teams that work on them. Some teams are made up entirely of in-house staff, while others might be completely outsourced, or a mix of both.

Generally, most software projects start with an in house team. But sometimes, a company might need to bring in an outside team to work on a special project. For example, a company that usually makes phone apps might need a different team to build a big software for businesses.

There are also times when multiple projects need some special skills that your current team doesn't have. In these cases, it's common to add experts from outside the company who have the right experience, like someone who knows a lot about financial services to help create a banking app. Software outsourcing companies are really helpful for finding these experts quickly.

In this blog, we'll look at two ways companies use outsourced teams: a dedicated development team that focuses only on one project, and an extended team that adds more people to an existing group. If you're new to using outsourced teams, it might be confusing to know when and how to use these models. We've put together this guide to help team leaders understand the options and make the best choices for their projects.

What is a Dedicated Development Team Model?

A dedicated team is like a group of hired experts who work for another company but are fully focused on your project. They're managed by someone from your own company, even though they don't officially work for you.

For example, there may be a chance that you don't have enough expertise to build an application. So, you hire a remote team (developers, DevOps manager, project manager, designer, etc.) to develop the same. This team will be known as a dedicated development team as they will only work on your project scope and nothing else.

Benefits of a Dedicated Development Team Model

  • Flexibility A dedicated team allows you to adjust to new project needs. You can hire a dedicated development team with specific skills when you need them, without being stuck with a permanent in-house team that may not always be needed.
  • Quick to Set Up You can put together a dedicated development team faster than hiring a regular, in-house team. Software companies usually have a group of skilled people ready to start working, which means you can have a dedicated team ready in just a few days for your long term project's success.
  • Ready to Go Skills A dedicated development team is already trained and comes with the skills you need. This saves you the time and effort of training them, especially for specialized tasks.
  • Cost Saving Hiring a dedicated team can be less expensive, especially if you look globally. For example, developers in North America might charge a lot per hour, but you can hire quality dedicated developers in India who charge much less.

Challenges of Implementing a Dedicated Team

  • Communication Issues Working with a team from a different company can lead to communication problems. They might have different ways of updating you or might not speak your language well, which can make working together harder.
  • Security Risks When you bring in an outside team, there's a risk that your project information could be leaked or stolen. Even though companies try to keep data safe, no system is perfect.
  • Takes Time to Get Started A dedicated team might know their stuff, but they need time to learn about your specific project and how your company does things. This setup time can be a disadvantage for short, urgent projects.

What is an Extended Team?

An extended team adds extra people to your existing team. These additional members also come from another company, and they help your current team do more work or bring in new skills.

For example, you are building an application for your company and have an in-house tech team skilled in dot net and flutter development. However, you found that there is a need for a React developer. So, instead of hiring a new developer because it can be expensive, you outsource the services by hiring offshore developers at lower rates. The team you hired here will be known as an extended team.

Benefits of the Extended Team Approach

  • Filling Skill Gaps If your current team is missing some skills, an extended team lets you bring in experts just where you need them, without having to hire them full-time.
  • Easier Hiring With an extended team, you don't have to go through the long process of posting job ads, interviewing, and hiring. This saves your HR team a lot of time and lets them focus on more important tasks.
  • Flexible Hiring You can add just one or a few specialists to your team at a time. This is great for when you need just a little more help or a few special skills.
  • Quick Results Extended team members are usually ready to jump in fast because they are already trained and know what they're doing. They help your long term projects move faster and produce better results.

Challenges of the Extended Team Model

  • Communication Issues It might take some time for new team members to get used to how your team communicates. They need to learn about your meetings, updates, and the tools you use for talking to each other.
  • Collaboration Takes Time It takes time for new and existing team members to get used to each other and work well together. Trust has to be built before everyone can collaborate closely.
  • More Management Needed At the start, you might need to manage the team more to help everyone work together smoothly. Managers have to make sure that both new and current team members can work as one team.

Differences Between Dedicated Teams and Extended Teams

Control and Management

  • Dedicated Teams The client has complete control and handles direct management, making sure everything follows the plan during the software development process.
  • Extended Teams The management is split, allowing the extended team to work well with the existing team, using the same tools and following the same rules.


  • Dedicated Team Model Great for long-term projects because it offers stability and dedicated resources, helping to keep costs predictable and often lower over time.
  • Extended Team Models Better for short-term projects or when a project needs to change often because it lets you adjust the size and cost of the team more flexibly.


  • Dedicated Development Team Less flexible as they focus on just one project at a time, which might limit quick changes if new needs arise.
  • Extended Development Team Very flexible, able to adjust quickly by changing team sizes or adding specific skills needed for the project.


  • Dedicated Software Development Team Can grow or shrink but usually within the scope of the specific project, adding new team members if needed.
  • Extended Software Development Team Extremely scalable, able to add or reduce tech talent quickly based on the current project needs without long commitments.

Skill Access

  • Dedicated Development Team Model Starts with a wide range of technical expertise, ready to handle all parts of the project from the beginning.
  • Extended Development Team Model Can quickly bring in people with the specialized skills needed to fill any skill sets in the existing team.


  • Dedicated Teams Needs a detailed setup of the company-specific tools and processes, making sure they match the in-house team’s methods.
  • Extended Teams Also needs integration but focuses more on fitting well with the existing team and using the same project management tools.


  • Dedicated Development Teams Usually offer better security because they follow the company’s strict rules under the close watch of the project manager.
  • Extended Development Teams Security might vary based on the outsourcing company, but they work under the supervision of project managers to keep things safe.

Cost Structure

  • Dedicated Team Model Might be more costly due to full-time commitments and needing lots of technical skills, but they bring a lot of value to large and complex projects.
  • Extended Team Model More budget-friendly for temporary needs, perfect when you need extra technical skills for certain parts of a project without long-term costs.

Project Suitability

  • Dedicated Team vs Extended Team Dedicated teams are best for large, complex projects that need steady attention and resources. Extended teams are good for adding extra help or specialized skills temporarily.

Management Overhead

  • Dedicated Development Teams Require more effort to manage because they are like a new part of the company that needs fitting into the overall development process.
  • Extended Development Teams Easier to manage since they are designed to blend into existing setups, needing less oversight from project managers.


  • Dedicated Team vs Extended Team Dedicated teams ensure direct communication, closely following the in-house development team’s ways. Extended teams may face more challenges, needing to coordinate with both the core team and extended team members to keep the project on track.

Which Outsourcing Model is the Best for Your Project Requirements

You may have some idea about when your company will need a dedicated team vs. extended team model. However, to make it more clear here are a few points to consider when choosing one of these models.

When to Hire a Dedicated Team?

  • If you already have an in-house team, however, you have a long-term, continuous, and scalable project that requires a significant investment of time and resources
  • When you need a team fully focused on your project with full control over the project, including selecting, managing, and motivating the team members
  • If you are a startup and don't want to put in the time, resources, and expertise to hire, train, and manage an in-house development team of specialists
  • When you require a team with in-depth knowledge, advanced skills, and extensive experience for complex, mission-critical projects
  • If you have a higher budget to dedicate to the project and want to optimize costs by outsourcing the entire development process
  • Ideal for startups, small businesses, and enterprises looking to scale their development capabilities without the overhead of an in-house team

When to Hire an Extended Team?

  • If you want to augment your existing in-house team's capabilities and fill specific skill gaps for a project
  • When you need to add niche expertise, such as specific programming languages, frameworks, or technologies, for a short-term or specialized project
  • If you have an aggressive deadline and need to accelerate development by tapping into a larger pool of resources
  • If you have a lower budget and want to optimize costs by extending your team offshore, taking advantage of lower labor costs in certain regions
  • Ideal for enterprises with established in-house teams looking to scale up for specific projects or add specialized skills without disrupting their existing processes

Practical Scenarios: Dedicated Team vs. Extended Teams for Project Excellence

Scenario 1: Hiring an Extended Development Team

  • Project Description Imagine being amid developing a larger product, like launching a Minimum Viable Product (MVP), with an aggressive deadline. Your in-house team is talented but stretched thin, necessitating additional team members to accelerate development and ensure a timely launch.
  • Model Choice In this scenario, opting for an extended development team model is ideal. By integrating a specialized extended team into your existing project, you gain rapid access to resources that complement your core team, enabling you to meet tight deadlines efficiently and launch the MVP on schedule.

Scenario 2: Hiring a Dedicated Development Team

  • Project Description As a startup founder with a groundbreaking idea but a limited budget, you aim to develop a prototype to showcase to potential investors and stakeholders.
  • Model Choice In this case, selecting a dedicated team model is the perfect solution. Partnering with a dedicated team service provider allows you to access a team overseeing end-to-end engagement, from product discovery to launch, efficiently and professionally. A dedicated team model minimizes overhead costs while ensuring the development of your startup's prototype is handled expertly.

Wrapping Up

Today, outsourcing software developers are becoming an ideal option for companies looking to achieve their business goals faster. However, the decision to go for an extended team or dedicated development team makes all the difference.

You understand your business and its needs the best. So, thoroughly analyze your project needs before making any decision. If you are in search of a software development company that can offer a variety of outsourcing models as per your needs, Prioxis can be the answer.

At Prioxis, we have a team of experienced developers who have delivered hundreds of projects with a 99% success rate. Whether you want to extend your in-house team or need an entire team dedicated towards your project we can help.

Avail Your 16 Hour Free Trial Now!


  • 01

    When is a dedicated team model most suitable?

    • A dedicated team model is ideal for long-term projects that require a significant investment of time and resources. It provides complete control and focus on the project.

  • 02

    When should you choose an extended team model?

    • An extended team model is suitable for short-term projects or to temporarily add specialized skills to your existing team. It allows you to fill skill gaps and accelerate development without disrupting your existing processes.

  • 03

    What is the difference between staff augmentation and dedicated teams?

    • The main difference is that a dedicated team works exclusively on your project, while an extended team augments your existing in-house team to fill specific skill sets.