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extended teams vs outstaffing

Extended Teams vs. Outstaffing: A Quick Overview

Are you aware of the benefits that extended teams vs software outstaffing services can bring to a project?

Are you familiar with the terms “extended teams” and “outstaffing” in the context of software development outsourcing?

If you’re seeking answers to these questions, read on. This blog will provide you with valuable insights into these concepts and help you understand how they can benefit your projects.

Extended teams, outstaffing, and dedicated teams have always proven to be some of the best solutions in the realm of outsourcing.

Each model offers a variety of benefits, ranging from optimizing time and cost to enhancing operational efficiency, all while allowing you to focus on your core business.

For these reasons, many companies pass their IT responsibilities to a third party or hire dedicated development teams for their projects. In essence, they choose one of these models to boost productivity and streamline operations.

Creating an internal team can be costly, time-consuming, and laborious. If you already have an internal team, you may have encountered obstacles or bottlenecks when growing your development team or fulfilling project needs.

While an in-house team is effective for small to medium-sized projects, there are advantages to outsourcing IT personnel if you want to grow your company, increase your capabilities, and have access to talent around the world.

There should not be a one-size-fits-all approach to software outsourcing. Project managers have at least three alternatives to divide the workload between an in-house team and an outsourced partner, depending on the stage and scope of the project.

Managers should assess which of the three options—extended teams, managed teams, and outstaffed teams—best fits the demands of their present projects because they each have slightly different functions.

What is an Extended Team?

Even if your finest engineers are located overseas, you may still include them in your internal team by using an extended team model.

Rather than contracting out every step of the development process, including management, your project manager stays in control while dividing the work between a small team of elite engineers and an internal staff.

With the extended team model, your team’s capability and adaptability are increased, enabling you to maintain complete control over every step of the development process while scaling projects swiftly and meeting deadlines.

What is Outstaffing?

Hiring remote workers through an outstaffing firm is known as “software outstaffing.” Despite their commitment to your projects, these workers are nevertheless paid by the outsourcing company.

This concept eliminates the administrative overhead of hiring full-time personnel while offering flexibility and access to specialized abilities.

Your personnel can concentrate on key responsibilities and project management as the outsourcing company takes care of payroll, HR, and other administrative duties.

What is a Managed Team?

The middle ground between an extended team and a fully outsourced solution is a managed team.

With this strategy, you may apply the most talented engineers while sharing the risk and accountability for producing high-caliber outcomes.

Although this team operates independently of your internal team, the external Project Manager will periodically report to the internal Product Owner to make sure the final product satisfies your needs.

Important design decisions and norms of interaction are decided upon and communicated through the designation of key decision-making roles.

Extended Team vs. Outstaffing: The Differences Explained

extended team

  • Flexibility and Scalability

Significant flexibility is provided by both approaches, although in different ways. With the extended team model, you can add top engineers to your team rapidly and integrate them with your current processes.

Software outsourcing offers cost and administrative load flexibility because the outsourcing company manages payroll and human resources, making it easy to scale up or down.

  • Cost-Effectiveness

Long-term projects requiring strict supervision and resource management may benefit financially from extended teams.

For temporary projects or situations where you only need specialized talents for a short period of time, outstaffing is typically more economical because it eliminates the overhead involved with hiring full-time staff.

  • Integration and Collaboration

Integration of an external team with your internal team needs to be done carefully. When you require close staff collaboration amongst remote engineers, this model functions well.

On the other hand, outsourcing works best if you need specialized personnel to perform certain jobs but do not require complete integration into your team’s everyday operations.

  • Control and Management

You still have complete control over the development process when working with a larger team. Leading the team and facilitating a smooth transition with your internal workforce is your project manager.

Conversely, outsourcing provides a more detached method. The outstaffing company handles the administrative responsibilities, and under the agency’s management structure, the distant workers comply with your instructions.

  • Administrative Burden

Your business will have far less administrative work to do when you outstaff. The team can concentrate on key business operations while the outsourcing company handles payroll, HR, and other administrative duties.

Your business keeps these obligations when you have a larger workforce, which can help you stay in charge but also adds to the workload.

How to Choose the Right Outsourcing Model for Your Business?


Your company can benefit from outsourcing in a number of ways, including cost savings and effective operational scaling. But switching to an outsourced model might occasionally provide difficulties as you and your outsourced partner get used to one another’s expectations and business procedures.

Selecting the appropriate model will enable you to get the greatest outcomes when businesses use outsourcing to grow, scale, and extend.

Whether you’re choosing between extended teams, outstaffing, or other software outstaffing options, these are some best practices to adhere to when choosing the best outsourcing model for your company.

  • Project Scope

It’s important to know the extent of your project before reaching out to possible outsourcing partners. Make sure you understand your company’s needs, goals, and the best course of action to reach your intended result.

You can determine the issue you’re attempting to tackle by providing straightforward answers to these questions.

For significant projects that call for ongoing cooperation, a dedicated team model is appropriate.

Outstaffing, or software outsourcing, on the other hand, is advantageous for brief tasks requiring specialized skills.

If you need to incorporate outside expertise into your internal team in order to improve skills, extended teams may also be a good fit.

  • Communicate About the Budget

Cost is a frequently disregarded aspect that can affect both the effectiveness of your project as a whole and your connection with your outsourcing provider.

Extended teams and hiring more staff members can be excellent choices if you’re searching for a more affordable alternative.

These approaches let you take use of outside talent without incurring the additional costs of maintaining a dedicated team, which calls for dependable infrastructure and resources.

Consequently, a dedicated team can be perfect if you have the funds to put together and train specialized teams.

  • Internal Management

Project control is better with a committed team. You supervise the development process and establish the rules and duties.

However, employing an outstaffing agency or managing an extended workforce might be more difficult because they need to be integrated into your current process and good communication and teamwork are expected.


Your unique project needs, budget, and desired level of control will determine which of the following team models—extended teams, outstaffing, software outstaffing, and dedicated teams—is best for you.

Each approach has its own benefits and can help your team perform better while you concentrate on your main business operations.

Through a thorough assessment of your project specifications and organizational objectives, you may choose the outsourcing model that most closely fits your company plan and maximizes output.

A committed team is necessary for a long-term, intricate project. While an extended team model can help with all of your project demands by integrating additional talent into your existing team, the staff augmentation approach is best for covering gaps in your team’s knowledge.

With all three methods, PSSPL, a top software development outsourcing provider, can assist you. You will have access to a pool of knowledgeable professionals who will work on your project thanks to our extended teams.

Our consultants are industry veterans who first understand your business’s needs. They can improve business productivity, cut expenses, and help you swiftly grow your staff.

Contact us if you require expert assistance in extended teams, outstaffing, software outstaffing, or any related services to start the process of realizing your dream project.

Happy Reading!!