One of the key factors in a project's success is having the right people in the right roles. For startups and small to medium enterprises (SMEs), expanding teams with specialized skills can be a significant challenge. Traditional outsourcing often feels disconnected from in-house operations, leading to gaps in collaboration. The Extended Team Model (ETM) offers a practical solution, bridging these gaps by working alongside existing teams and complementing their efforts.
What is an Extended Team Model?
An Extended Team Model (ETM, often referred to as ‘Dedicated Teams’ or ‘Staff Augmentation’) is a method of expanding your internal team to complete a project for which it is not feasible to extend the in-house team permanently. Both teams, in-house and extended, complement each other, compensating for skill or experience gaps.
The extended team can be nearshore (operating in the same time zone, usually in a neighboring country) or offshore (operating in a different country and a different time zone). The key feature is that the extended team operates as an integrated extension of your company.
How is an ETM Different from Outsourcing?
The major difference between outsourcing and working with an ETM lies in collaboration and location. Outsourcing involves transferring the entire development process to an external team, while the ETM requires seamless integration and collaboration between in-house and extended teams.
Additionally, outsourcing often focuses on short-term solutions, whereas ETM is ideal for long-term collaboration and creating dedicated teams aligned with your business goals.
Components and Advantages of Using an ETM
Complement, Not Replace - The extended team supplements rather than replaces the in-house team. Its main goal is to fill skill or experience gaps while sharing the company's vision and goals.
Dynamic Task Distribution - Responsibilities are distributed between the in-house and extended teams, with project management typically retained by the in-house team for better alignment.
Focused Control - With dedicated teams working on specific projects under the guidance of in-house management, companies maintain complete control over processes, ensuring focus and alignment with internal operations.
Flexibility and Efficiency - The ETM allows businesses to adjust team sizes and capabilities dynamically, ensuring efficiency in scaling operations and meeting project demands.
Statistics on the ETM Model
The Extended Team Model (ETM) is rapidly becoming a key approach for IT and software development in Europe and the US. It offers businesses the ability to integrate dedicated teams seamlessly with their operations, ensuring flexibility and efficiency. Here are the latest statistics and insights:
ETM Adoption Trends
- Around 40% of European companies are utilizing the ETM model for IT and software development, particularly in the SaaS, fintech, and e-commerce sectors. The UK, Germany, and Nordic countries are leading the charge in adopting dedicated teams to scale effectively.
- Companies using ETM have reported up to a 40% improvement in project delivery times, attributing the gains to access to specialized talent and optimized workflows.
Cost Benefits
- Businesses leveraging dedicated teams through the ETM in South Asia can save up to 70% on labor costs compared to onshore teams.
- Compared to traditional outsourcing, ETM offers better ROI by ensuring ongoing collaboration and direct involvement in project management.
Talent Access
- South Asia's tech talent is seen as capable and highly skilled, making the region an attractive option for businesses seeking developers who can contribute to complex software development projects.
- Dedicated teams enable businesses to access this talent efficiently, reducing time-to-market by up to 30% compared to building in-house teams.
Market Growth
- The ETM market in Europe is growing at a CAGR (Compound Annual Growth Rate) of over 5%, driven by increasing demand for flexible and scalable staffing solutions aligned with remote and hybrid work trends.
- Post-pandemic, the ETM model has become a preferred solution for businesses seeking agility and global collaboration capabilities.
Satisfaction and Retention
- Over 80% of companies using dedicated teams report improved team collaboration and long-term retention compared to traditional outsourcing.
- Dedicated teams offer greater alignment with company goals, resulting in a 20% increase in project success rates for long-term initiatives.
When Should an Extended Team be Used?
Extended Team Models (ETMs) are ideal for organizations with a long-term need for resources and a desire for flexibility. They address key challenges such as:
Bridging Local Skill Gaps
When your local talent pool lacks specialized skills, an Extended Team Model (ETM) provides access to qualified professionals with the expertise needed to complete your projects seamlessly.
Scaling Rapidly Without Delays
Businesses experiencing growth or fluctuating demand can onboard extended team members quickly, ensuring projects scale effectively while minimizing recruitment and training timelines.
Flexible Team Management
ETMs make it easy to scale teams, adjust skill sets, and seamlessly onboard or offboard members to meet evolving project demands.
Cost-Effective Talent Solutions
By leveraging nearshore or offshore extended teams, businesses can achieve high-quality output comparable to local teams at a significantly reduced cost, optimizing project budgets.
Conclusion
The Extended Team Model offers an effective, flexible, and scalable solution for businesses. By leveraging dedicated teams, companies can fill skill gaps, reduce costs, and ensure faster delivery while retaining control over critical operations.
If your organization faces challenges in talent acquisition, scalability, or project execution, the ETM is a proven game-changer. It fosters collaboration, innovation, and long-term success.
Looking to build your next dedicated team? Creative Software is here to help. Explore our teams here.