Bringing top-notch technologies to the business landscape became an existential imperative for companies all over the world, with digital transformation spending being forecast to reach a staggering 3.4 trillion U.S. dollars in 2026. As a part of this process, team extension has been a growing trend in the IT industry for many years. By hiring external experts to handle specific tasks or projects, organizations tap into extensive expertise and, thus, become more resilient. Team extension also allows them to save resources and stay competitive amid dynamic technology advances in the long haul. In this article, we will explore this collaboration model and the major advantages it can bring to your business in 2023.
What Is a Team Extension in IT?
Team extension is a cooperation model that implies a service agreement between a company and a technology vendor in which the provider supplements the company’s internal team with additional resources. This external provider is typically a specialized firm that provides expertise in a certain area of expertise, such as software development or graphic design. Depending on the project, the agreement may serve both short- and long-term objectives.
In a nutshell, team extension services aim to scale the organization’s capabilities to meet the demands of rapidly changing market conditions without sacrificing quality. IT team extension is crucial for businesses because it provides an extra layer of support that can be used to supplement an existing in-house team. This model is especially helpful during times of high demand or when there is a shortage of in-house resources.
What Are the Benefits of the Team Extension Model?
Technology expertise embodies an untapped asset for organizations on their digital transformation journeys. In this way, team extension enables organizations to find new vectors of growth and attest to their commitment to flexibility. Below is an array of advantages the team extension model brings to the fore:
- Let top-notch expertise become your anchor. By reaching out to seasoned technology specialists, your organization can seize the opportunity for reinvention while increasing operational effectiveness and maintaining its edge.
- Transfuse your team with a fresh perspective. Your business can use the potential of a large pool of talent to find innovative approaches to digital transformation and better monetize assets.
- Save on costs. Team extension empowers organizations to create reliable technology partnerships based on shared resources and infrastructure.
- Unleash a new level of flexibility. Cooperating with external professionals, you can maintain a much-needed flexibility in terms of recruitment and commitment to long-term compensations.
- Scale up your business swiftly and efficiently. Extension team services allow companies to hold the reins of their projects, explore uncharted areas of technological growth, and build an agility-oriented trajectory of software development.
Overall, team extension outsourcing services are suitable for businesses striving to expand their technology stack and save resources for future growth. Outsourcing some of the work frees up resources to focus on other areas of the business. Additionally, team extension can help companies keep up with the latest technology trends and innovations.
What Are the Different Types of Team Extension?
Team extension serves as an umbrella term for various types of technology cooperation. Below are essential team extension models you may consider before searching for a reliable tech partner:
- Managed team. In this scenario, a technology vendor offers you a development team and takes responsibility for its management. As a product owner, you remain in charge of decision-making and communication.
- Dedicated team. If your company seeks dedicated developers responsible for a specific set of tasks and goals in your project, this type of extension team model can be the right choice. You access necessary expertise and remain flexible along the way.
- Outsourced team. This model enables businesses to delegate major responsibilities to the technology vendor, from product ideation to project integration. Your company’s main task is to provide a vision of your needs and the final solution that should be delivered within the chosen timeframe.
Choosing the right team extension model depends on the specific needs and goals of your organization. However, some factors that should be considered include the size and scope of your IT capacities, the skillset and experience of the team members, the level of engagement with the organization’s internal IT staff, and the desired outcome of the extension.
How Do You Know When to Use Team Extension Services?
Each company has different needs and preferences when it comes to outsourcing. For example, some organizations may opt for team extension in IT whenever they need additional specialists or expertise, while others may use these services on a project-by-project basis. Ultimately, the decision of when to use team extension services in IT will come down to the specific needs and objectives of the company and the preferences of its management. However, team extension services are especially advantageous when the company:
- Needs additional expertise or capacity for a specific project or initiative.
- Experiences high levels of turnover among its in-house IT staff.
- Faces a tight deadline and cannot afford to wait for new in-house staff to be trained.
- Wants to outsource non-core or non-strategic functions of its IT operations.
Much has been said about outsourcing in the past few years. Some have heralded it as a way to cut down on costs and improve efficiency, while others have described it as an effective strategy for delegating responsibilities and sustaining flexibility. Yet, there is no denying that deploying a team extension model is one of the leading trends in the business world, and it is likely to increase in the upcoming year, guiding businesses on their digital transformation.
nearshorefriends is an international technology company that offers assistance to companies operating in various industries, from telecom and insurance to gaming. We unite tech devotees in countries all over the world and provide every method of team extension as well as consulting services. Enabling organizations to access a future-back approach to transformation, nearshorefriends will ensure that your company finds the right talent for your business needs.