Software team extension models are an increasingly popular outsourcing strategy used by companies to extend their existing teams with additional expertise from outside the organization. This type of model can be used to supplement in-house teams or to entirely outsource a project. Team extensions offer a number of benefits, including access to specialized skills and expertise, increased agility and flexibility, improved scalability, lowered costs, and faster recruitment processes. Considering that there are estimated to be about 28.7 million developers all over the world by 2024, expanding the hiring pool to popular outsourcing regions remains a convenient strategy. This article will go over the details of what a software team extension model really is and why it's a great alternative to traditional recruitment.
What exactly is a software team extension model?
The software team extension model is a business strategy in which a company hires a team of software developers, UI/UX designers, and other IT professionals from an external service provider to extend their existing in-house software development team. In this model, the external team becomes an extension of the company's internal team and works closely with them to develop software products, services, or targeted solutions.
Companies that need to quickly scale up their development capacity, access specialized skills or expertise or reduce costs associated with recruiting and maintaining an in-house team are those who take advantage of this model the most. This grants them access to a wider talent pool, as a software team extension team can be located either onshore or offshore, depending on the company's needs and preferences.
At Blue Coding, we always recommend nearshore software team extension as experience has proven to us that nearshoring is an outsourcing strategy that provides the best value for money. Nearshore team extension typically involves hiring software developers in a neighboring country and time zone, to work on specific projects or tasks during similar office hours. By hiring from a nearshore location, such as Latin America, companies can save money while still mitigating risks thanks to the similar culture and time zones, as well as the lack of a significant language barrier.
Uses of Team Extension in IT Outsourcing
Nearshore outsourcing with a software team extension model can provide access to specialized skills, cost savings, increased scalability, and improved time to market. It also provides companies with the flexibility to scale up or down quickly depending on their needs and limited budgets. Here are some of the key advantages of outsourcing with a software team extension model!
Ability to hire for specialized skills:
By outsourcing with a software team extension model, companies can gain access to specialized skills that may not be available in-house. This can help them stay competitive and save money in the long run, as there are many tech stacks out there currently in very high demand that are extremely competitive to hire for. While the US market is suffering from a serious talent crunch and is currently overbooked, the LATAM sector holds immense potential.
Outsourcing with a software team extension model can lead to cost savings due to the minimal labor costs compared to in-house teams in the US and Canada. These savings can be as much as 40% sometimes!
Outsourcing with a software team extension model can provide companies with increased flexibility and scalability as they can quickly add or remove resources depending on their needs. This staffing flexibility also allows them to rapidly adjust their team to fit the current state of the business.
Improved time to hire:
By outsourcing with a software team extension model, companies can reduce their time to market as they are able to access resources quickly and efficiently. For example, any reputable nearshore software development company would have its own channels for job postings and recruiting to ensure you hire the right developers in record time.
Nearshore Team Extension Model
As we’ve mentioned earlier, nearshore team extensions provide access to skilled professionals in nearby countries at lower costs than offshore development. It also grants companies the opportunity for closer collaboration and better communication due to the physical proximity of the extended and in-house teams. Some of the most relevant advantages of nearshore team extensions include:
Access to skilled and diverse professionals:
Nearshore team extensions provide access to highly skilled professionals in nearby countries. Talent pools in LATAM countries aren't only larger but also cheaper and more accessible than those composed of US developers.
Lower development costs:
Nearshore team extensions are typically less expensive than local North American development due to lower rates charged by these IT professionals. This allows companies to get the same high-quality results for a cheaper price point. Though offshore development can be even cheaper, the longer time zone differences and large distances to your extended development team counteract the financial benefits.
The close proximity of the teams allows for better communication and closer collaboration between teams. This is due to two main reasons. The first time is that time zone differences will be far less significant, and both in-house and extended developers will be able to collaborate in real-time. The second one is that thanks to the significant physical proximity with many LATAM countries, your two teams can meet in person and collaborate without a screen separating your developers.
The proximity of the teams facilitates much better communication as it is easier for teams to connect in person or over video calls thanks to the minimal time zone differences.
Ready to hire a nearshore developer through a software team extension model?
A software team extension model will allow companies like yours to incorporate existing teams with additional expertise from outside the organization, particularly from nearshore locations. This strategy offers access to specialized skills, cost savings, increased agility and flexibility, improved scalability, and shorter recruitment times. Now, the first step is to define the requirements of the project and the skills and expertise needed to complete it before you determine the size of the extended team based on the project requirements. That’s when we come in!
Using a nearshore software team extension model for IT outsourcing and nearshore development can provide access to specialized skills, cost savings, increased scalability, improved time to market, and closer collaboration between teams. For companies looking for an effective way to outsource their projects while acquiring all the benefits of a software team extension model, IT outsourcing and nearshore development can be the right choice. Because nearshore outsourcing is so often a popular option, our Blue Coding team offers staffing options to help navigate this process. We handle every step of the nearshoring process, including technical vetting and development billing. Contact us today to learn more about our services